The Real Estate Regulator Authority-Karnataka (RERA-K) must return lakhs of rupees in ‘delay fees’ it took from promoters and developers of many real estate projects. The Karnataka High Court struck down a circular from RERA-K that set these fees for late quarterly updates and annual audits on approved projects.
The court noted that the Real Estate (Regulation and Development) Act, 2016, and its rules do not give the authority power to charge fees beyond what the law clearly allows. Without that direct grant, no circular—no matter its good aims—can create a money burden for promoters. This rule is basic and well-set.
Justice M. Nagaprasanna made the ruling. He approved over 75 petitions from Sharada Achar and other landowners, builders, and developers. They all challenged the legal basis of RERA-K’s circular from September 3, 2020.
That circular added a ₹10,000 fee for delays up to one month past the due date for quarterly reports on RERA’s site. It set ₹20,000 per month for longer delays. RERA-K gathered lakhs in these fees from promoters and developers. It charged not just from the circular’s date but back to 2018-19.
The court pointed out that RERA-K’s circular shows no legal basis for the fees. It lacks any way to calculate them too. So the circular came from whim alone. It fails to link to the RERA Act.
The judge said petitioners now get all benefits that follow from voiding the circular. He added that this ruling does not block future laws or fees set by proper legal steps.