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”

 

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:

1. change in sanctioned plans;
2. alteration/addition to the project;
3. development of commercial components;
4. demolition/removal of structures;
5. whether 2/3rd allottee consent is mandatory; and
6. 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.

CCI- A mere letter from the company that the super area has increased is not sufficient to claim any amount from the allotte

 In the Matter of Belaire Owners' Association vs Dlf Limited, Huda CASE NO.19/2010 the Competition Commission of India held that 

" there may be instances where at the time of actual construction, certain minor changes are required to be made in some of the drawing board plans and the building is constructed slightly different from the drawing board plan but it,  more or less, conforms to the drawing board plan. In such a case, there may be either minor (say + 2%) increase or decrease in the super area as well as the carpet area of each apartment. However, the company if substantially changes the lay-out plan resulting, in more than 2% increase or decrease in super area, the allottees' consent should be obtained for such changes in the lay-out plans. Since the price paid by the allottee is per sq. ft. of super area, the price of the apartment would increase or decrease after the actual building is constructed. In order to lay a claim on the basis of increase in super area, the company is supposed to give information to the allottee about the difference in the initial building plan and the actually-constructed building plan on the basis of which the new super area is calculated. The actual plan should be the one submitted to the authorities for completion certificate and on the basis of which occupancy certificate is granted. The calculations of increased area should be sent to the allottee, so that the allottee knows and can verify on ground as to how his super area has increased. A mere letter from the company that the super area has increased is not sufficient to claim any amount from the allottee. Thus, whenever a claim on the basis of increase in super area is made, the company is bound to give the relevant information as to how the super area stands increased.