No exemption for Bangalore Development Authority, must register Kempegowda Layout: RERA

Bengaluru: Rejecting the Bangalore Development Authority’s plea to stay outside its jurisdiction, the Real Estate Regulatory Authority (RERA) has directed the BDA to register the Nadaprabhu Kempegowda Layout (NPKL) under its purview.

The order came in response to a petition filed over the delay in developing the layout.

The BDA had argued that it was a statutory authority, not a real estate promoter, and therefore should be exempt from RERA regulations.

RERA, however, ruled that under Section 2(zk)(iii) of the RERA Act, any development authority or public body that constructs or develops land or buildings for sale to the public qualifies as a “promoter”. It further stated that the RERA Act has an overriding effect on other laws.

“While the BDA Act, 1976, governs planning and land development, RERA is a later and special enactment meant to regulate real estate projects and protect homebuyers. It does not interfere with the planning powers, but regulates transactions involving development and sale to allottees.

"Therefore, the contention that RERA interferes with planning powers is misplaced. Thus, to the extent of development, sale and delivery of plots, RERA has an overriding effect,” the order said.

Dismissing the BDA’s claim that its projects were government welfare schemes rather than profit-oriented ventures, RERA said the purpose of the project — profit or not — was irrelevant. “Even non-profit promoters come under RERA if they sell real estate,” the authority noted.

“The BDA’s reliance on being a ‘Welfare Authority’ is misleading. The fact that BDA undertakes welfare schemes or subsidised allotments does not exempt it from statutory compliance when it sells plots. RERA ensures transparency, accountability, and time-bound development,” the order stated.

Directing compliance, RERA instructed the BDA to register the NPKL project and furnish details such as layout approvals, sanctioned plans, development status, financial disclosures, and other relevant project documents.