From razed lakebeds to forged documents and manipulated approvals, the Indian real estate sector has long been mired in murky practices. In Bengaluru, one of the country’s hottest property markets, these violations aren’t just occasional blips — they’re baked into the system.
A recent Reddit post by an industry insider has pulled back the curtain, revealing a web of deceit, collusion, and regulatory theater that has quietly fuelled the city’s real estate boom. The detailed exposé has since gone viral, striking a chord with frustrated homebuyers painting a sobering picture of the machinery behind Bengaluru’s skyline.
In a post that has stirred a storm online, a Reddit user who claims to have worked with four major real estate firms in Bengaluru described the industry as a system “built on deception, short-term greed, and regulatory theater.”
“Publicly listed firms. Lavish launches. Glitzy brochures. But beneath the surface? A rotten system,” the user wrote.
Although funds from homebuyers are meant to be secured in escrow under RERA, the post alleges they are routinely siphoned off using fake vendors or related entities. “Quarterly financial updates to RERA are either skipped or completely faked,” the user said, calling the system a facade with “no oversight, no audits, and no consequences.”
According to the user, clean-title land is practically non-existent. Properties often come entangled in disputes, and these issues are either downplayed in documentation or masked until buyers are locked in. “Litigations are often settled off the books… Some cases are even fake,” the post claimed.
Builders reportedly erect clubhouses and civic spaces on non-developable land, betting on post-facto regularization through bribes. After possession, buyers allegedly face further extortion: “Want OC? NOC? BWSSB connection? Be ready for bribes,” the post read.
Rampant misuse of borewells without permits was another issue flagged. “Every project I’ve worked on has overused borewells without permits to cut water tanker costs,” the user wrote.
Both construction-linked and time-linked payment plans are, the user claimed, designed to secure funds early and slow construction deliberately. “Your project crawls while the builder shows new flashy launches,” the post said.
Describing the regulatory authority as toothless, the user wrote: “Delays? All it takes is a standard extension request… No significant penalties. No real accountability.”
Bank approvals, often seen as a safety net by buyers, can be manipulated through internal contacts and “fees,” according to the user. Fake “sold out” statuses are also used to manufacture urgency.
Even post-possession, buyers remain in the dark as builders delay forming Resident Welfare Associations to retain control over revenue-generating amenities. “Internal staff, brokers, and channel partners” are allegedly allowed to book early and flip units for profit.
With real demand cooling, the post accuses builders of colluding to maintain inflated prices. “These aren’t just business rivals… they often dine together,” the user wrote.
Behind it all lies a “deep-rooted political nexus” that shields the system. The user warns that if even one major player falters, “the entire Bengaluru real estate market could collapse.”
The post triggered an outpouring of responses online. One commenter noted: “Till today land transfer to Association of Allottees as per section 17 of RERA is not happening in Karnataka… Landowners can mortgage your land without your knowledge.”
Another user wrote, “It’s like they do everything in their power to deceive and alienate their end consumers.”
A third chimed in with practical concerns: “Are there any genuine players in this space? And… what key questions should a buyer ask to make sure the property is legit?”
