Updated 21 October 2026. We re-read the report of the order and, as the report did, leave the developer, project and buyer unnamed; the lesson is the rule, not the company. Reports so far stop at the headline. This guide turns the order into a checklist for your own demand letter, explains the interest point, and shows how to raise a complaint with K-RERA.

What did K-RERA decide in the Kengeri case?

  • GST on water: remove the 18% GST levied on BWSSB domestic water bills passed on to the buyer (PropNewsTime, 14 October 2026).
  • Paperwork: correct the related demand and construction-stage statements.
  • Extra charge: the buyer had disputed ₹1,18,487 charged over and above the water-related dues in the sale agreement; the developer was told to justify the additional collection and refund where applicable.
  • Delay interest: interest imposed for more than 600 days from 11 February 2024 was rejected, because the developer produced no emails, notices or messages showing late payment or ignored demands (PropNewsTime).

Can a builder pass on water bills and other costs before possession?

This was the heart of the case. The developer argued the flat was sold at a fixed, all-inclusive price and that BWSSB charges were statutory service costs outside the base price (PropNewsTime). K-RERA did not accept that. As reported, it held that developers "remain responsible for project-related expenses until possession is handed over to buyers" (PropNewsTime, 14 October 2026), naming municipal taxes, water and electricity charges, maintenance and other government dues.

The practical reading for buyers: until you take physical possession, a charge that relates to running or building the project needs a clear basis in your sale agreement, and the developer should be able to show it. A line on a demand letter is not, by itself, that basis.

Is GST payable on BWSSB water charges?

K-RERA's direction in this case was specific: the 18% GST added on top of BWSSB domestic water bills had to come off, and the developer had to justify what it had collected (PropNewsTime). We have not stated the general GST position on water supply here because we could not confirm it from a CBIC notification on 21 October 2026, and tax treatment can turn on who supplies the water and how.

If GST appears on any utility line in your demand, ask the developer in writing for the legal basis and the invoice it paid. A developer who has the basis can show it; one who cannot has the problem this order describes.

Can a builder charge interest without sending reminders?

Not without proof, on the reasoning in this order. The buyer said payments were made whenever demanded, and K-RERA held the interest could not be justified without documentary evidence such as emails, notices or messages (PropNewsTime, 14 October 2026). The 600-plus days of interest from 11 February 2024 were rejected.

Keep your own trail: every demand letter with its date of receipt, every payment receipt and bank statement line, and every email about a revised schedule. If interest appears, ask for the dated demand it is calculated from.

How to audit your own demand letter before possession

  • Lay the demand next to the sale agreement's cost schedule. Every line should map to a clause.
  • Utilities (water, electricity, sewage): who is the supplier, what period, and is the charge before your possession date? Ask for the supplier's bill.
  • Tax lines: ask which supply the GST is charged on, at what rate, and on what legal basis. Tax on a utility bill passed through is the exact issue in this order.
  • Interest: ask for the demand date, due date and payment date it is calculated on, and the reminders sent.
  • Maintenance and corpus: check the start date and the months charged in advance. Our guide: Maintenance Charges in Bangalore Apartments 2026: GST, Corpus
  • Put every query in writing and pay disputed lines under protest only after taking advice, keeping proof of the protest.

How do I file a complaint with Karnataka RERA?

Complaints are filed online through the K-RERA portal. Attach the sale agreement, the disputed demand letters, your payment proof and your correspondence, and set out the relief you want (correction, refund, withdrawal of interest). Our step-by-step guide covers the form and process: How to File a Complaint in Karnataka RERA: 2026 Guide.

For compensation claims and the role of K-RERA's adjudicating officer, see Karnataka RERA Adjudicating Officer: Compensation & Dues 2026. K-RERA's published orders are a useful guide to how similar disputes have gone.

Other recent K-RERA orders on what builders owe

In a separate order of 3 June 2026, K-RERA directed a Bengaluru developer to complete promised amenities and transfer the land khata, BESCOM and water meters, corpus fund and maintenance accounts to the residents' association within 90 days (Business Standard, 14 July 2026). Our guide on missing amenities: Amenities Not Provided by Builder: K-RERA Orders 2026.

Homes in South Bengaluru listed with us

These listings are general inventory and have no connection with the Kengeri order. Whichever project you buy into, ask for the full cost schedule before you sign.