Illegal or undisclosed mortgaging of land used for apartment projects is emerging as a growing concern in several cities, exposing homebuyers to prolonged legal disputes and financial uncertainty. In one such case along Anekal–Chandapura Road, residents of an apartment complex with 384 flats have spent years struggling to secure clear ownership rights. The dispute arose after the land and several flats in the project were allegedly mortgaged by the developer without the knowledge or consent of buyers. Under property laws governing apartment developments, once residential units are sold, the land and common areas are typically meant to be transferred to a cooperative housing society or an association of apartment owners. However, legal experts say delays in forming properly registered resident bodies often create loopholes that allow developers to retain control over the land long after the apartments have been sold. According to a legal professional associated with the matter, such delays can give developers the opportunity to continue using the property as collateral to secure loans. “If the residents’ association or cooperative society is not legally established and recognized, the developer technically retains control over the land records. This makes it possible to mortgage the property even after most flats are sold,” the advocate explained. Industry observers say this gap in the system is frequently exploited in real estate projects. In some cases, developers allegedly create proxy or defective associations that are capable of signing documents and entering into financial agreements. These entities can then be used to facilitate loans by mortgaging land or unsold units without the knowledge of the actual apartment buyers. Sources familiar with the sector claim that thousands of crores of rupees are raised through such arrangements across various Indian cities. Buyers often discover the issue only when attempting to register their flats or when legal disputes arise involving lenders or financial institutions. The situation at the apartment complex on Anekal–Chandapura Road highlights the consequences of such practices. Out of the total 384 flats in the project, only 242 have been officially registered so far. The remaining 142 buyers are still waiting for registration, despite having already paid between 90% and 95% of the total cost of their homes. Residents say the delay stems from incomplete construction and unresolved legal complications related to the mortgaged property. As a result, many homebuyers who invested their savings in the project remain uncertain about when they will receive full ownership rights. In 2025, the Karnataka High Court directed the builder to execute a conveyance deed transferring the project’s land and common areas to the cooperative society within 120 days. The conveyance deed is a crucial legal document that formally transfers ownership and control of the property from the developer to the residents’ body. However, according to members of the apartment community, the court’s directive has yet to be implemented. The cooperative society representing the residents has since initiated contempt proceedings, alleging non-compliance with the court’s order. For many buyers who booked their homes more than a decade ago, the situation has turned into a long and exhausting legal battle. What was once expected to be a straightforward purchase of a residential apartment has instead become a prolonged struggle to secure legal ownership of homes they believed they already owned. Legal experts say the case underscores the need for stricter oversight in the real estate sector, faster formation of legally recognized apartment associations, and greater transparency in property transactions to protect homebuyers from similar disputes in the future.