Can K-RERA Investigate a Builder on Its Own? Sections 35 to 38 Explained for Bengaluru Buyers

A Bengaluru apartment project stops reporting progress. The quarterly updates go quiet, the site looks idle, and dozens of buyers each assume someone else will complain. Does the regulator have to wait for a formal complaint before it can ask questions? Under the Real Estate (Regulation and Development) Act, 2016, it does not. Section 35 lets the Authority act on a complaint or suo motu, on its own motion, and call for information, explanation and investigation into the affairs of a promoter, an allottee or an agent.

The short answer. Section 35(1) allows the Authority, on a complaint or suo motu, by a written order with recorded reasons, to call on any promoter, allottee or real estate agent to furnish information or explanation about its affairs, and to appoint one or more persons to inquire into those affairs. Section 35(2) gives it the powers of a civil court for discovery of documents, summoning witnesses and issuing commissions. Section 37 lets it issue directions that are binding on all concerned, and Section 38 lets it impose penalty or interest for contraventions. The trade-off: these powers mean a regulator can move without a buyer's complaint, but there is no guarantee it will, so a well-documented complaint is still the surest way to get attention.

What does Section 35 actually allow?

Information, explanation and inquiry. Section 35(1) of the RERA Act says that where the Authority considers it expedient, on a complaint or suo motu, relating to the Act or the rules or regulations, it may, by order in writing and recording reasons, call upon any promoter, allottee or real estate agent at any time to furnish in writing such information or explanation relating to its affairs as the Authority may require. It may also appoint one or more persons to make an inquiry in relation to the affairs of that promoter, allottee or agent.

Two features matter for buyers. The trigger can be a complaint or the Authority's own motion, so a pattern the Authority sees on its own portal can, in principle, prompt action. And the order must be in writing with reasons recorded, which creates a paper trail that can later be relied on.

What powers does the Authority have during an inquiry?

The powers of a civil court on key points. Section 35(2) says that, notwithstanding anything in any other law, while exercising its powers under Section 35(1), the Authority has the same powers as a civil court under the Code of Civil Procedure, 1908, while trying a suit, in respect of the discovery and production of books of account and other documents at the place and time it specifies, summoning and enforcing the attendance of persons and examining them on oath, issuing commissions for the examination of witnesses or documents, and any other matter that may be prescribed.

For a buyer, that means the Authority can require a promoter to produce the project's accounts and documents, not just a written reply. If your concern is about where money went, those powers are directly relevant.

What can the Authority do once it finds a problem?

Direct, restrain and penalise. Section 36 says that where, during an inquiry, the Authority is satisfied that a contravention has been committed and continues, or is about to be committed, it may restrain any promoter, allottee or real estate agent from carrying on that act until the inquiry concludes or until further orders, without notice where it deems it necessary. PropNewz covered interim orders in detail in our explainer on Section 36 interim orders.

Section 37 says the Authority may, for the purpose of discharging its functions under the Act, rules or regulations, issue such directions from time to time to promoters, allottees or real estate agents as it considers necessary, and that such directions shall be binding on all concerned.

Section 38(1) gives the Authority power to impose penalty or interest for any contravention of obligations cast on promoters, allottees and real estate agents under the Act, rules and regulations. Section 38(2) says the Authority shall be guided by the principles of natural justice and, subject to the Act and rules, has power to regulate its own procedure.

Does this mean buyers no longer need to complain?

No. The power to act suo motu is a power, not a duty to investigate every project. The text of Section 35(1) says the Authority may act "where the Authority considers it expedient to do so". Whether it does in any particular case is its call.

A complaint under Section 31 remains the way to put your specific grievance on the record and get a decision on it. What Section 35 adds is the possibility that a pattern of problems, visible across complaints or on the Authority's own records, leads to an inquiry into the promoter's wider affairs. Several complaints about the same project put more of that pattern in front of the Authority.

If you want to point the Authority to a wider problem, say so in your complaint and attach what supports it, such as missed quarterly updates or a mismatch between payments demanded and visible progress. Ask, specifically, whether the Authority will consider an inquiry under Section 35.

How is an inquiry different from a complaint?

A complaint is about your grievance; an inquiry is about the promoter's affairs. Under Section 31(1), any aggrieved person, including an association of allottees or a registered voluntary consumer association, may file a complaint with the Authority or the adjudicating officer for a violation of the Act, rules or regulations. Section 29(4) then asks the Authority to dispose of the matter within sixty days of receiving the application, recording reasons in writing if it cannot.

A Section 35 inquiry works differently. It is opened by the Authority's own order, it can range across the promoter's affairs rather than one buyer's agreement, and it uses the civil court powers in Section 35(2) to gather documents and evidence. Its outcomes are the Authority's tools: interim orders under Section 36, directions under Section 37 and penalty or interest under Section 38.

The two can run side by side. A complaint gets you a decision on your own claim, such as delay interest or a refund. An inquiry, if the Authority opens one, can address problems that affect every allottee in the project. Buyers who understand both can ask for the right thing at the right time.

How do these powers protect the money you have paid?

By reaching the books. Buyers' biggest fear in a stalled project is that their payments were diverted. Section 35(2)'s power to require the discovery and production of books of account and other documents is the tool that lets the Authority look at that question directly, rather than relying on the promoter's word.

Combined with Section 37 directions and Section 38 penalties or interest, an inquiry can lead to binding instructions on how the promoter must proceed. The Act's other provisions, including the requirement to keep 70 per cent of amounts realised from allottees in a separate account for land and construction cost, give the inquiry something concrete to test against. PropNewz explained the competition angle of the Authority's powers in our guide to Section 38(3) references to the Competition Commission.

What should a Bengaluru buyer do if a project seems to be drifting?

Build the record that makes an inquiry easy to justify. Work through this checklist.

1. Note the dates of the project's last quarterly progress updates on the K-RERA portal.
2. Photograph the site on fixed dates so progress, or its absence, is documented.
3. Compare the payment demands you received with the construction stage they were tied to.
4. Talk to other allottees and agree a common set of facts and documents.
5. File a Section 31 complaint that sets out the specific violations, with supporting documents.
6. In the complaint, ask the Authority to consider calling for information and an inquiry under Section 35.
7. Track every order, direction or interim order issued, and comply promptly with any that bind you as an allottee.

The same habits help when you are still choosing. If you are comparing plotted developments such as Aditri Tulips in Chikkadasarahalli with apartment projects, check the regulator's records for each before you book.

Frequently asked questions

Can RERA investigate a builder without a complaint?

Yes. Section 35(1) of the RERA Act lets the Authority act on a complaint or suo motu, by a written order recording reasons, to call on any promoter, allottee or real estate agent for information or explanation about its affairs and to appoint persons to inquire into those affairs.

What powers does RERA have during an inquiry?

Section 35(2) gives the Authority the powers of a civil court under the Code of Civil Procedure for discovery and production of books of account and documents, summoning and examining persons on oath, issuing commissions to examine witnesses or documents, and any other prescribed matter, while it exercises its Section 35(1) powers.

Are RERA directions binding on buyers too?

Yes. Section 37 of the RERA Act says the Authority may issue directions from time to time to promoters, allottees or real estate agents as it considers necessary to discharge its functions, and that such directions shall be binding on all concerned. Section 38(1) also lets it impose penalty or interest on any of them.

Does RERA follow natural justice when it uses these powers?

Section 38(2) of the RERA Act says the Authority shall be guided by the principles of natural justice and, subject to the other provisions of the Act and the rules, shall have powers to regulate its own procedure. Section 35(1) also requires orders calling for information to be in writing with reasons recorded.

Last updated 2026-10-24. PropNewz Team.