Thousands of homebuyers across Karnataka are stuck waiting as over 2,600 real estate projects have missed their deadlines.

According to the Karnataka Real Estate Regulatory Authority (KRERA), more than 2,600 housing projects in the state are delayed. Many of these have no new completion date in sight. Bengaluru is the most affected city, with over 1,300 of these stalled projects located there.

KRERA has also warned the public that several projects have not renewed their registration, meaning they're not legally safe to invest in anymore. This is a wake-up call for homebuyers—especially those looking to invest in fast-growing areas like East Bengaluru. Some well-planned projects like Birla Evara have stood out for sticking to timelines and following all legal norms.

The Real Picture: What the Numbers Show

1. Total delayed projects in Karnataka: 2,632
2. Delayed projects in Bengaluru: 1,301
3. Total registered projects in the state: 7,707
4. Projects asking for more time: 1,007 (waiting for approval)

KRERA has made it clear: dealing with expired or lapsed projects is risky. Once the registration ends and isn't renewed, buyers have little legal protection.

(Source: KRERA, Hindustan Times – data up to December 31, 2024)

Why Are So Many Projects Getting Delayed?
1. Too Many Approvals, Too Much Time

Builders often need permission from different government departments before they can start building. These include:

1. Land-use changes
2. Fire safety approval
3. Environmental clearance
4. BBMP or BDA building plans

These approvals can take months or even years. There's no single-window system to speed up this process.

2. Money Problems

Builders usually rely on two main sources of money:

1. Advances paid by buyers
2. Bank loans

If sales slow down or loans are hard to get, construction stops. In some cases, builders move money from one project to another, making things worse.

3. Bad Planning and Poor Management

Some builders launch projects without proper studies or planning. Later, they struggle with:

1. Cost overruns
2. Shortage of workers
3. Sudden rise in cement and steel prices
4. Legal Disputes and Land Issues

Disputes about land ownership, court cases, or use of agricultural land (revenue sites) can stop a project in its tracks. Some even face demolition orders later.

5. Unexpected Events (Less Common)

Builders sometimes blame delays on things like heavy rain or policy changes (like GST). But KRERA often doesn't accept these reasons—especially if delays started earlier.

What This Means for Homebuyers It's Hitting People Hard

1. Many buyers are paying both rent and EMIs for unfinished homes.
2. For older people, this involves using retirement savings.
3. Some families are falling into deep financial trouble.

Stress and Uncertainty

1. There's no clarity on when homes will be ready.
2. Buyers feel helpless and anxious.

The Refund Problem

1. As of Dec 2024, builders owed ₹667 crore to buyers.
2. KRERA approved ₹758.8 crore in refunds across 1,660 cases.
3. But only ₹91.8 crore was actually recovered—just 14%.

That means most buyers didn't get their money back. The unpaid refund amount went up by 37% in one year—from ₹486 crore in Jan 2024 to ₹667 crore in Dec 2024.

One-Sided Contracts

Even now, many builder agreements favor the developer. Homebuyers often don't get enough protection under the terms.

Is KRERA Helping Enough? What KRERA Can Do

KRERA is supposed to:

1. Penalize builders (up to 10% of project cost)
2. Order refunds with interest
3. Attach assets if builders don't pay
4. Track project progress every quarter

But There Are Problems

1. Many orders are not being enforced properly.
2. KRERA doesn't have a clear system for closing dead projects.
3. Revenue officers who are supposed to help with recovery often delay action.
4. Some buyers say KRERA is too slow and "toothless."

Some New Steps

KRERA is now trying to improve by:

1. Launching a digital portal for complaints
2. Automating refund tracking
3. Making project data more transparent

What You Should Do Before Buying

Here's a checklist to help you stay safe:

1. Check KRERA registration on the official website
2. Look into the builder's past record
3. Ask for a clear payment schedule
4. Make sure the agreement follows RERA rules
5. Get legal advice before signing anything

Projects like Birla Evara, near Sarjapur Road, are RERA-approved and developed by trusted names. They're better prepared to finish on time and follow the rules, making them safer options.

Final Thoughts

This wave of delayed projects is a serious issue—not just for builders and officials, but for ordinary families who've put everything into buying a home. Bengaluru's real estate market has great potential, but trust is wearing thin.

Going forward, stricter enforcement, quicker approvals, and better project planning are needed. And for buyers, smart choices matter more than ever.