KRERA Flags Developer for CC Delay, Mysuru Buyers Hit With Full Tax Penalty

The Karnataka Real Estate Regulatory Authority (KRERA) has taken strict note of a developer’s failure to obtain a mandatory Completion Certificate (CC) for a residential project in Mysuru. This lapse has reportedly resulted in homebuyers facing a 100% property tax penalty. The regulatory intervention by KRERA highlights growing scrutiny over project compliance and the responsibilities of promoters under the Real Estate (Regulation and Development) Act, 2016.

In its recent order, KRERA directed the developer to immediately secure the Completion Certificate from the competent authority and submit a detailed compliance report. The authority observed that despite earlier directions in related proceedings, the developer had not fulfilled statutory obligations.

KRERA Directs Immediate Compliance

According to the order, KRERA has instructed the developer to:

• Obtain the mandatory Completion Certificate (CC)
• Submit the certificate before the authority
• File a detailed compliance report
• Provide a time-bound action plan for pending amenities

The compliance report must clearly outline which infrastructure works and facilities have been completed and which remain pending. KRERA also mandated a structured timeline specifying when all unfinished amenities, common areas, and statutory requirements will be addressed.

The authority emphasised that delays in fulfilling regulatory obligations cannot be justified without proper approvals and documentation.

Also Read: RERA Rajasthan 2026: Registration, Fees, Rules & Project Verification Guide

Background of the Mysuru Project

The case relates to a residential development in Mysuru launched in 2014. Buyers alleged significant delays in completing common amenities and failure to secure the Completion Certificate even years after possession was granted.

Homeowners informed KRERA that possession letters were issued between 2020 and 2022, and several sale deeds were executed. Despite this, the project reportedly remains incomplete in terms of common infrastructure and statutory documentation.

The regulator noted that essential compliance steps such as execution of the Deed of Declaration and formation of the Association of Allottees had not been completed.

100% Property Tax Penalty Hits Homebuyers

One of the most serious consequences of the missing Completion Certificate is the financial burden imposed on residents. Due to the absence of a valid CC, several homeowners were subjected to a 100% penalty on property tax assessments by local authorities.

KRERA observed that failure to obtain the Completion Certificate directly impacted buyers who had already paid the full sale consideration, including maintenance deposits, club membership charges, and corpus funds.

The order indicates that such lapses shift undue financial liability onto buyers, despite their contractual compliance.

Allegations of Plan Deviations and Unauthorised Changes

Apart from the Completion Certificate delay, buyers also alleged deviations from the sanctioned plan. Complaints submitted before KRERA included:

• Unauthorised structural alterations
• Carving and selling of additional plots
• Reduction in undivided share of land

These allegations prompted the authority to examine whether the promoter had violated obligations under Sections 11 and 17 of the RERA Act.

KRERA Rejects Phased Development Justification

In its findings, KRERA rejected the developer’s argument that amenities were being completed in phases and that delays were part of a staged development plan.

The authority clarified that promoters remain responsible for all obligations until common areas are conveyed to the Association of Allottees. KRERA reiterated that phased execution cannot be used as a reason to postpone statutory compliance or deny legitimate rights of homebuyers.

Even after a previous order directing completion of amenities, the developer had allegedly failed to fully comply, prompting renewed action.

Also Read: UP Real Estate Investments Jump 53% in 2025 as Developers Expand Beyond NCR: UP RERA

Warning Under Section 63 of the RERA Act

The order further warns that failure to submit the required compliance report or adhere to the directives will lead to action under Section 63 of the Real Estate (Regulation and Development) Act, 2016.

Under this provision, KRERA has the authority to impose penalties for non-compliance with its orders. The regulator made it clear that further delays would invite stricter enforcement measures.

Broader Implications for Developers and Buyers

This case underscores the increasing assertiveness of KRERA in enforcing regulatory discipline in Karnataka’s real estate sector. The order sends a strong message that developers must secure Completion Certificates before handing over possession and complete all promised amenities within stipulated timelines.

For homebuyers, the intervention by KRERA offers reassurance that regulatory mechanisms are available to address grievances related to compliance failures, documentation delays, and financial penalties arising from developer lapses.

As regulatory scrutiny intensifies, real estate developers across the state may face greater accountability, particularly in cases where statutory approvals and project deliverables remain incomplete.