Homebuyers Win Rs 10 Lakh Compensation From Builder Over Missing Amenities

Bangalore: For lack of pool, open gym, spa, open amphitheatre & other amenities by builder as promised, homebuyers win Rs 10 lakh compensation; Karnataka RERA order. Know how the homebuyers won.

The Karnataka RERA tribunal, Bangalore, recently ruled that a reputed builder must pay Rs 10 lakh to four homebuyers. This decision came after photographic evidence showed that the builder sold them flats without delivering most of the promised amenities like senior citizen park, open gym, spa, open amphitheatre, badminton court, and more.

This judgement came in a case filed by four dissatisfied homebuyers - Uma Devi, P Sushma, Pavan G K Reddy and Gangapalli Kullayi Reddy- from R T Nagar. The housing complex is located in Jala Hobli, Bangalore North. When these four homebuyers signed the sale deed in 2022 to buy a flat in this project for Rs 2.08 crore each, the builder promised them that a variety of amenities would be built. However, none of these were actually constructed.

The Karnataka RERA authority on September 4, 2026 ruled that the builder has shown colourful dreams to these homebuyers by showing all of these promised amenities in the brochure, allotment letters/agreements, and when it failed to keep the promise, even if unintentional it means misrepresentation. Thus K-RERA ordered the builder to pay Rs 10 lakh compensation to the homebuyers. Keep reading to know how the homebuyers won.

Asha Kiran Sharma, Partner at King Stubb and Kasiva said to ET Wealth Online that this Karnataka RERA order is a useful reminder that developers cannot hide behind clever paperwork when they fail to deliver what they promised.

According to Sharma, what's striking about this order is the fact that the builder tried to make this about paperwork instead of about the actual homes people bought. The builder clearly did not build the promised amenities like pool, gym, spa and others and this was proved in the joint inspection in May 2026.

Moreover, a K-RERA mandated joint inspection report also showed that that the builder did not build any children's play area, badminton or tennis court, open gym, and a clubhouse missing its pool, spa, guest rooms, and indoor games area. Further, the builder's own staff were present for that joint inspection, and they even show up in the photographs, so there wasn't much room left to argue the report was inaccurate.

Thus Sharma says that for builers this judgement means that you can't draft a sale deed that declares your own obligations complete and then use that same document as a shield later. The Karnataka RERA Authority was clear that these documents are one-sided instruments written entirely by the builder, and buyers often have no real choice but to sign them.

For homebuyers, Sharma says that this judgement reassures that a genuine, honest mistake like citing the wrong registration number for a project won't sink an otherwise valid complaint, so long as the project and the promised amenities are clearly identifiable from the record.

Sharma said: "At the end of the day, people don't pour their life savings and years of loan repayments into a home just to get a bare plot with a signature on a deed. They're buying into a lifestyle that was promised to them in a brochure, and this order says quite plainly that promoters have to be held to that promise, not just to the transaction on paper."

Smt Maheshwari S Hiremath, adjudicating officer of Karnataka RERA heard this case.

Clause 12.1 of the sale agreement says that the builder has an obligation to complete the club house within 18 months from the date of site release order from BIAAPA. However, BIAAPA has given a partial release order.

Thus Karnataka RERA ruled that the builder cannot yet be held liable for not delivering a fully constructed club house.

On May 14, 2026 as per court order, the homebuyers and the builder conducted a joint inspection where several photographs were taken. However, though the representatives of the builder (Manjula and Keerthi) were present for this joint inspection, they did not sign it. But colour photos proved they were present in the building premises.

The Karnataka RERA said that generally every homebuyer has a dream to buy a home and even if that means he/she needs to take the risk of investing their lifetime savings and take loans which would take the rest of their life to pay back. In this context, a builder has the responsibility to fulfil the dream and not make people run from pillar to post.

Karnataka RERA said that according to Section 12 of RERA Act, the obligation of a builder is regarding the veracity of the advertisement or prospectus. Hence it is the bounden duty and obligation of the builder to provide all the amenities as per the advertisement or prospectus of the particular project.

In this case, the builder executed the sale deed in 2022, but is yet to provide the promised amenities.

Karnataka RERA observed: “Mere execution of a sale deed in favour of the allottee is not sufficient without completion of the project by providing all amenities /facilities as agreed.”

The Karnataka RERA said that it is the duty of a builder to complete the project in all aspects as the homebuyers have claimed that many amenities are yet to be completed or not constructed at all.

The Karnataka RERA observed that there are many issues like compound wall is missing in some areas, borewell was dug in a private area, non-maintenance of STP and WTP, etc spreading bad smell, etc.

All of these issues are shown in the coloured photographs taken in front of the builder’s representative when the joint inspection report was being prepared.

Karnataka RERA observed: “Perused all colored photographs which goes to show that several amenities are incomplete such as compound wall, SBR tanks 1 and 2, club house, sewage collection tank, STP and WTP plant room, gate at the entrance, no salt or brine used for water treatment, STP chambers are open, etc.”

The photographs however, show that the children’s play area, park and yoga deck are now complete.

Thus the K-RERA authority ordered the builder to pay Rs 10 lakh compensation within 60 days or else, the builder will need to pay interest on the amount.