Blacklisted Builders in Bangalore: What Homebuyers Need to Know (2025)

Are you planning to buy an apartment in Bangalore? Before you sign any agreement, it’s vital to thoroughly check the builder’s track record. In recent years, Bangalore’s real estate market has faced significant challenges, with numerous developers being officially blacklisted or flagged by authorities such as the Karnataka Real Estate Regulatory Authority (KRERA) and the Bruhat Bengaluru Mahanagara Palike (BBMP).

Common issues include fraud (such as selling the same flat to multiple buyers), project delays, legal violations, and unresolved customer complaints. As of early 2025, over 1,300 real estate projects in Bengaluru have missed their completion deadlines, and several high-profile cases have highlighted the risks faced by homebuyers.

Here’s a comprehensive, up-to-date guide to the builders and developers you should be wary of in 2025.

Why Are Builders Blacklisted?

Builders in Bangalore can be blacklisted by regulatory authorities such as the Karnataka Real Estate Regulatory Authority (KRERA) or the Bruhat Bengaluru Mahanagara Palike (BBMP) for a range of serious violations. Being blacklisted means a builder or developer is officially flagged for practices that put homebuyers at risk-financially, legally, or in terms of safety.

Common reasons for blacklisting include:

• ‍Fraudulent practices: Taking money from buyers without delivering the promised property, or selling the same unit to multiple buyers.‍
• Multiple funding or misappropriation: Raising funds for the same project from different sources or misusing collected funds.‍
• Inflated or misleading cost sheets: Presenting false or exaggerated project costs to buyers.‍
• Unapproved construction deviations: Building beyond sanctioned plans or making illegal modifications.‍
• Stalled or abandoned projects: Halting construction indefinitely, leaving buyers in uncertainty.‍
• Legal non-compliance: Failing to adhere to orders or regulations from KRERA, BBMP, or other authorities.‍
• No Occupancy Certificate (OC) or statutory approvals: Handing over properties without obtaining the required legal clearances.‍
• Non-payment of penalties or compensation: Ignoring regulatory orders to pay fines or compensate homebuyers.‍
• Persistent customer complaints: Repeated unresolved issues related to construction quality, safety, or promised amenities.

Blacklisting is intended to protect homebuyers from unreliable or unethical developers. Before proceeding with any property purchase, always check the builder’s current status on the KRERA website or through official BBMP notifications to ensure your investment is safe.

Notorious Blacklisted Builders in Bangalore

Below is a curated list of developers repeatedly mentioned across forums, consumer complaint boards, and regulatory watchlists for serious issues.

Builders Under Investigation by Karnataka RERA

The Karnataka Real Estate Regulatory Authority (RERA) maintains an official list of projects under investigation. These projects are not registered with RERA, and the public is cautioned against engaging with them.‍

• Sobha City – Casa Serenita by Radhakrishnan Meenakshisundaram‍
• Marvel Orial by Marvel Omega Builder‍
• Godrej Platinum by Godrej Properties Ltd‍
• Mantri Alpyne and Mantri Webcity by Mantri Developers Pvt Ltd‍
• ZED Earth Phase 2 by BCIL Red Earth Developers India Pvt Ltd‍
• Lotus Palace by First Futuristic Holdings Limited‍
• Nitesh Chelsea by Nitesh Estates Pvt Ltd‍
• Puravankara Provident Park Square by Puravankara Limited‍
• Dreamz Sarovar by Dreamz Infra India Ltd

Community-Sourced Lists of Blacklisted Builders

Community forums and user-generated lists provide additional insights into builders with reported issues. While these sources may lack official verification, they reflect consumer experiences:

• ‍Dreamz Infra Pvt Ltd: Frequently cited for fraud and customer complaints.‍
• TGS Developers: Reported for fraudulent activities.‍
• Golden Gate Properties: Noted for multiple funding issues and legal complications.‍
• DS-MAX Properties: Allegations of project deviations.‍
• Skyline Constructions & Housing Ltd: Accused of fraudulent practices.‍
• Prabhavathi Builders: Reported for poor construction quality and regulatory deviations.‍
• Indya Estates: Projects reportedly halted due to financial issues.‍
• Supertech Developers: Projects stopped; blacklisted in multiple regions.‍
• Mantri Developers: Projects like Mantri Webcity and Mantri Alpyne under scrutiny.

Sources: https://blacklistedrealestatecompanies.blogspot.com/2014/07/black-list-of-real-estate-companies.html

BBMP Blacklisted Contractors

The Bruhat Bengaluru Mahanagara Palike (BBMP) has blacklisted 32 contractors following a ₹1,539 crore scam involving fake bills for civil works between 2008 and 2011. These contractors are barred from participating in future tenders. Details can be found in the Bangalore Mirror article.

How to Protect Yourself

• Always check the RERA status of any project and builder on the Karnataka RERA website.
• Avoid pre-launch offers without RERA numbers
• Search for recent consumer complaints and reviews.
• Ask for all approvals and OC before making payments.
• Consult local forums like myBDAsites.com for up-to-date builder reputations.

Safer Alternatives: Trusted Builders in Bangalore

Want peace of mind? Here are some of the most reliable builders known for timely delivery and transparency:

• Prestige Group
• Sobha Limited
• Brigade Group
• Birla Estates
• Godrej Properties

These developers offer RERA-compliant, legally vetted projects in areas like Whitefield, Sarjapur, Devanahalli, and Kanakapura Road.

Final Word

Bangalore’s real estate market is dynamic, and new names can be added to the blacklist as more complaints surface or regulatory action is taken. Always do your due diligence. If a deal looks too good to be true, it probably is.

Stay informed, stay safe, and make your Bangalore home-buying journey a happy one.

FAQs

Why do builders get blacklisted in Bangalore?

Builders are blacklisted for serious violations such as fraud, illegal constructions, project delays, missing approvals (like OC), or ignoring RERA/BBMP orders.

Is it safe to buy a flat from a builder who was previously blacklisted?

It’s risky. Even if a builder claims to have resolved issues, always verify their current RERA compliance and legal standing before investing.

Is RERA approval mandatory for projects in Bangalore?

Yes. All eligible real estate projects must be registered under RERA. Lack of RERA registration is often a red flag and may indicate the builder is unreliable.

Can I get a home loan if the builder is blacklisted?

Most banks and NBFCs will deny home loans for projects associated with blacklisted builders due to legal and financial risks.

What are common red flags that a builder might get blacklisted?

Watch out for delayed handovers, legal notices, absence of RERA registration, no Occupancy Certificate (OC), repeated customer complaints, and financial irregularities.

Who are some builders in Bangalore with a history of being blacklisted or under investigation?

Names include Dreamz Infra, Mantri Developers (Webcity, Alpyne), TGS Developers, Prabhavathi Builders, and others listed by KRERA or flagged on consumer forums.