K-REAT halts SJR Prime commercial block until 2/3 of Palazza City buyers consent
K-REAT has held that SJR Prime Corporation must get written consent from at least two-thirds of allottees within 60 days before building under a revised plan at its Bengaluru project.
Key points
- K-REAT set aside a K-RERA order that had dismissed a homebuyer's complaint against SJR Prime Corporation for want of jurisdiction.
- The tribunal directed the builder to get consent from at least two-thirds of allottees within 60 days of its 27 October 2026 judgment.
- Until then the builder may not build in deviation from the original 2013 plan; the judgment can be appealed to the High Court.
The Karnataka Real Estate Appellate Tribunal (K-REAT) has restrained SJR Prime Corporation Pvt Ltd from building in deviation from the original sanctioned plan of its Palazza City project in Bengaluru until it obtains written consent from at least two-thirds of the project's allottees. In a judgment delivered on 27 October 2026, the tribunal gave the builder 60 days to obtain that consent.
What Happened
A homebuyer who owns a flat in the project had complained to the Karnataka Real Estate Regulatory Authority (K-RERA) that the builder obtained a revised sanction plan dated 22 May 2019 from the Bangalore Development Authority (BDA), without allottees' consent, and began work on a commercial complex on the project land. The builder argued that buyers had agreed in their sale documents to future development and that such consent was not required.
On 13 April 2026, K-RERA dismissed this and four similar complaints, holding that it had no jurisdiction to grant the reliefs sought. Only the homebuyer appealed.
K-REAT held that the regulator ought to have examined the complaint. It noted that the builder attempted to construct a commercial complex in an area reserved for park and civic amenities without the prior written consent of two-thirds of the allottees, which Section 14 of the Real Estate (Regulation and Development) Act, 2016 requires before a sanctioned plan is altered.
The tribunal allowed the appeal in part and set aside K-RERA's order. It directed the builder to obtain the consent of at least two-thirds of the allottees within 60 days before proceeding under the revised plan. If it fails, it must complete the project according to the original sanctioned plan dated 2 April 2013, and the BDA will be at liberty to cancel the revised plan. No costs were awarded.
What It Means
The ruling confirms that a builder cannot change a sanctioned plan in a RERA-registered project without the written consent of two-thirds of allottees, and that K-RERA can hear such complaints. Homebuyers facing unapproved changes to their project can file a complaint with their state's real estate regulator. The judgment may be appealed to the High Court.
Source: K-REAT judgment
Sources & Citations
- K-REAT judgment — Karnataka Real Estate Appellate Tribunal