The Karnataka High Court last week set aside a 2020 circular of the Karnataka Real Estate Regulatory Authority (KRERA) that had the effect of imposing a “delay fee” when there were belated submission of quarterly updates and annual audit statements by promoters.

A single-judge bench of Justice M Nagaprasanna held on September 19 that the fee was “without distinction to the scale of the project, the stage of development, or the peculiar circumstances surrounding it”.

Several petitions had been filed against the circular. The bench noted that having taken the submissions into account, the issue was whether the action was within the ambit of the parent law, the Real Estate (Regulation and Development) Act 2016 and the relevant rules.

Having perused the sections of the Act cited by the stat

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