Karnataka RERA to enforce project closure checks by Nov 2025, ensuring full compliance before builders declare projects complete
The Karnataka Real Estate Regulatory Authority (RERA) is set to introduce a comprehensive project closure policy aimed at enhancing transparency and accountability in the real estate sector. Inspired by a similar initiative in Odisha, the new framework will require builders to complete all statutory and service-related compliances before a project can be officially closed.
Currently, project closures are often based solely on declarations made by promoters, which has led to concerns over incomplete work and missing documentation. The new policy will shift the process to a verification-based model, ensuring that developers fulfill all legal obligations and deliver promised amenities before receiving final approval.
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Expected to be implemented by mid-November 2025, the policy mandates that builders submit proof of key clearances, including Occupancy Certificates (OC), approvals from the Pollution Control Board (PCB), electricity supply from BESCOM, and water connections from BWSSB. Additionally, developers must hand over land or flat khatas, title deeds, and transfer corpus funds to resident associations prior to closure.
As of October 2025, Karnataka RERA had received 1,080 applications for project completion or extension, with 886 approved, 69 rejected, and 125 still under review. Notably, 2,746 projects had expired completion dates, underscoring the urgency for a more robust regulatory mechanism.
Homebuyer advocacy groups have welcomed the move, stating it will prevent developers from prematurely declaring projects complete and launching new ones without resolving pending issues. Recommendations include allowing only 75% of payment upon issuance of the OC, with the remaining 25% released after the final completion certificate is granted.
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By enforcing stricter compliance checks, Karnataka RERA aims to safeguard homebuyers from fraud and delays, while fostering greater trust and transparency in the state’s growing real estate market.