The Karnataka High Court has quashed a circular issued by the Real Estate Regulatory Authority , Karnataka (KRERA), that mandated promoters pay a “delay fee” for late submission of quarterly updates and annual audit reports. Justice M Nagaprasanna found that KRERA had no authority under the Real Estate (Regulation and Development) Act, 2016, to levy such a fee, describing the September 3, 2020, circular as “arbitrary, illegal and void.”

Petitioners argued that while RERA requires timely updates, it does not empower the Authority to collect delay fees. They pointed out that the Act and its rules address exceptions like force majeure and non-start of construction and emphasized that pandemic-related delays should be exempted. Builders also highlighted that KRERA imposed the fee re

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