RERA tribunal upholds description of BDA as a ‘promoter’, crucial win for allottees of sites in Bengaluru

Karnataka tribunal affirms BDA as 'promoter', ensuring compliance with RERA for Bengaluru site allottees in a landmark ruling.

The Karnataka Real Estate Appellate Tribunal (KREAT) has dismissed an appeal filed by the Bengaluru Development Authority (BDA) challenging an order of the Karnataka Real Estate Regulatory Authority (RERA) directing the board to register the Nadaprabhu Kempegowda Layout (NPKL) project under the Real Estate (Regulation and Development) Act, 2016.

The tribunal rejected the appeal at the stage of admission and confirmed the order passed by the RERA Authority on November 7, 2025.

The order by the tribunal makes it mandatory for the BDA to follow RERA rules, which it had been attempting to avoid by contending that it is a statutory authority regulated by its own Act and rules.

The order is considered crucial for the allottees of BDA sites because the authority had been maintaining that any dispute with the allottees has to be adjudicated in accordance with the BDA (Allotment of Site) Rules, enacted in 1984, and not RERA.

Another major implication is that BDA must adhere to the agreements it signs with allottees, similar to private developers, particularly with regard to the due date for handing over possession, and the conditions mentioned in the agreement.

If the agreement provides for monetary compensation in the event of a delay, BDA will be bound to pay the allottees.