K-REAT orders delay interest for Nitesh Caesars Palace buyer, says project was ongoing

The Karnataka Real Estate Appellate Tribunal (K-REAT) on 30 October 2026 set aside an order of the Karnataka Real Estate Regulatory Authority (K-RERA) that had thrown out a homebuyer's complaint against the promoters of Nitesh Caesars Palace in Bengaluru. The tribunal held that the project was an ongoing project under the RERA Act and directed the promoters to pay the buyer interest for the delay.

What Happened

The homebuyer bought a flat in the project under a registered sale deed dated 29 September 2015. According to the judgment, the buyer complained that promised amenities, including electricity and water connections, a clubhouse and a swimming pool, were not provided, and that the firm which took over the project demanded Rs 250 per square foot as escalation cost.

K-RERA dismissed the complaint on 10 March 2025, holding that RERA did not apply because the project was not ongoing when the law came into force. K-REAT disagreed. It noted that the Karnataka RERA Rules came into force on 11 July 2017, while the partial occupancy certificate was granted only on 27 December 2017, and that a certificate issued by the promoter's own architect is not a completion certificate under the Act. Relying on a Supreme Court ruling that possession without an occupancy certificate cannot be forced on a buyer, the tribunal held that handing over the flat at the sale deed did not count as valid possession.

The tribunal ordered the promoters to pay interest at SBI MCLR plus 2% on the full sale price, from the date of the sale deed to 27 December 2017, within 60 days. It held that they had no right to demand escalation charges, as the buyer's documents had no such clause. It declined a request to direct registration of the project under RERA.

What It Means

For buyers in older Bengaluru projects, the ruling says the date an occupancy certificate is actually granted, not the date it is applied for, decides whether RERA applies and when lawful possession begins. A later demand for extra charges that the sale documents do not provide for can be challenged. The K-REAT judgment can be appealed to the High Court.

Source: K-REAT judgment