Builder gave flat, not promised amenities; RERA orders 90-day fix

Order says handing over a flat alone is not enough if promised amenities and common facilities remain incomplete

For many homebuyers, taking possession of a flat does not always mean moving into a fully functional home. Delays in common amenities, utility connections and transfer of project management often continue for years after possession.

 

In an order reinforcing homebuyer rights, the Karnataka Real Estate Regulatory Authority (K-RERA) has directed a Bengaluru builder to provide all promised amenities and transfer key project assets to the residents’ association within 90 days. The ruling makes it clear that handing over possession alone does not end a developer’s responsibilities under the Real Estate (Regulation and Development) Act, 2016 (RERA).

 

The case arose after a homebuyer, who took possession of his apartment in 2017, complained that despite waiting for more than six years, the builder had failed to provide several promised facilities, including Cauvery water supply, electricity meters of the Bangalore Electricity Supply Company Limited (BESCOM) and diesel generator power backup. The developer had also not transferred the land Khata, corpus fund, maintenance accounts and other common assets to the association of apartment owners.

 

What Karnataka RERA ordered

In its June 3, 2026 order, K-RERA directed the developer to:

 

• Restore essential power supply.
• Complete all promised amenities as per the sale agreement.
• Transfer the land Khata to the authorised association of allottees.
• Hand over BESCOM electricity meters and water meters.
• Transfer the corpus fund and escrow account balance.
• Submit maintenance accounts and hand over project management to the residents' association.

 

The authority gave the builder 90 days to comply.

 

Possession without amenities is not complete possession

One of the most important aspects of the ruling is its finding that simply giving buyers the keys to their apartments does not amount to full compliance if promised facilities remain incomplete.

 

Shivam Kunal, senior associate at B Shanker Advocates LLP, says the order offers significant relief to homebuyers who often receive possession without the infrastructure promised at the time of purchase.

 

“The RERA Act is retroactive in nature and ensures protection to homebuyers by requiring developers to fulfil promises made in the sale agreement. Without providing common facilities and amenities, offering possession does not amount to valid possession,” he says.

 

The authority also rejected the developer's argument that RERA did not apply because the project's occupancy certificate had been issued before certain provisions came into force.

 

Why the ruling matters for homebuyers

Legal experts say the order reinforces an important principle under RERA: Developers remain responsible until every contractual and statutory obligation is fulfilled.

 

Soayib Qureshi, partner at PSL Advocates & Solicitors, says the judgment recognises that buying a home involves much more than acquiring four walls.

 

“The promise of a home extends beyond the apartment itself. It includes the infrastructure, utilities and common facilities that formed the basis of the buyer's investment. Developers cannot selectively fulfil obligations by handing over possession while indefinitely delaying essential amenities,” he says.

 

According to him, the decision also strengthens the requirement for developers to promptly transfer maintenance accounts, corpus funds and common areas to the residents' association, reducing prolonged dependence on builders.

 

Experts note that the ruling reinforces the legal value of promises made during the sale process.

 

Anmol Gandhi, partner at Gandhi Law Associates, says amenities mentioned in agreements, approved plans or promotional material are enforceable commitments.

 

“RERA makes it clear that a developer’s responsibility extends beyond handing over possession. Homebuyers can approach RERA if common facilities promised at the time of purchase are not delivered within a reasonable period,” he says.

 

Aarya Bhat, advocate at the Delhi High Court, says brochures are far more than advertising material under the RERA framework.

 

“Once a promoter advertises facilities and collects money on that basis, those promises become binding obligations. Handing over flats while abandoning the promised amenities is as much a default as delaying possession itself,” she says.

 

She adds that the 90-day deadline, backed by RERA's penalty provisions for non-compliance, gives the order practical enforceability.

 

Why even older projects can come under RERA

Another important takeaway from the ruling is that developers cannot avoid responsibility simply because a project or agreement predates the implementation of RERA.

 

Madhura Samant, founder of Elarra Law Offices, says Karnataka RERA relied on the Supreme Court's ruling in Newtech Promoters and Developers v. State of Uttar Pradesh to clarify that the law can apply to continuing obligations arising from earlier agreements.

 

“This closes an avenue that many developers have relied upon. Possession does not discharge a promoter's obligations. Amenities, essential services and transfer of project assets remain live obligations until they are actually performed,” she says.

 

According to Samant, the order also confirms that liability continues until the agreement for sale is fully implemented, including transfer of maintenance accounts, corpus funds and escrow balances.

 

What should homebuyers learn from this?

The ruling serves as a reminder that buyers are entitled to receive every facility promised in the sale agreement and project documents.

 

If essential amenities remain incomplete long after possession, buyers can seek relief under RERA. Developers are also legally required to facilitate the formation of residents' associations and transfer common areas, maintenance funds and project records within the framework laid down under the Act.

 

However, legal experts caution that obtaining an order is only one part of the process.

 

Siddharth Joshi, advocate at the Delhi High Court, says, "The order reinforces that developers cannot walk away from their obligations merely because possession has been handed over. However, its true value will ultimately depend on timely compliance by the developer and effective enforcement if the directions are ignored."

 

For India's residential property market, the Karnataka RERA ruling sends a strong message that the project completion is not measured by handing over apartment keys alone. A developer’s obligations end only when every promised amenity, common facility and financial handover has been completed.