2/3rd Allottee Consent Under Section 14(2) of RERA Required Only for Alterations Beyond the Development Agreed Under the Agreement for Sale: K-RERA
Raintree Boulevard Apartment Owners Association v. L&T Realty Developers Limited
Case: Raintree Boulevard Apartment Owners Association v. L&T Realty Developers Limited
Forum: Karnataka Real Estate Regulatory Authority (K-RERA)
Complaint No.: 00772/2025
The matter concerned a complaint by the Raintree Boulevard Apartment Owners Association against L&T Realty Developers Limited in relation to alleged unauthorised modifications and commercial development associated with the project. The Association sought, inter alia, revocation of the promoter's project registration and demolition of the commercial buildings.
Key finding
K-RERA held that the requirement of obtaining the consent of two-thirds of the allottees under Section 14(2) of the RERA Act is attracted only where the proposed alteration is beyond what was mutually agreed between the promoter and the allottees under the agreement/sale documents.
In other words, not every change or alteration in a real estate project automatically requires consent of two-thirds of the allottees. The first question is whether the proposed change goes beyond the development that was contractually agreed with the allottees.
K-RERA relied upon an earlier appellate tribunal ruling in reaching this conclusion. The Authority consequently dismissed the Association's complaint seeking revocation of registration and demolition.
Legal proposition
The decision can be usefully stated as:
The statutory requirement of consent of two-thirds of the allottees is triggered when the promoter proposes an alteration which goes beyond what was mutually agreed under the agreement for sale; the mere existence of an alteration does not, by itself, attract Section 14(2).
Relevance under RERA
The ruling is particularly relevant when dealing with allegations concerning:
- change in sanctioned plans;
- alteration/addition to the project;
- development of commercial components;
- demolition/removal of structures;
- whether 2/3rd allottee consent is mandatory; and
- the scope of Section 14(2) of the RERA Act.
The decision also illustrates the importance of examining the agreement for sale and the original contractual representation regarding the project, rather than treating every subsequent modification as requiring statutory consent.
