Lodha's Maiden Bengaluru Venture Encounters Legal Obstacle Over Plan Alterations
Mumbai-based Lodha Developers Ltd's inaugural project in Bengaluru has become embroiled in a significant legal dispute with a group of residents concerning the development of high-end residential towers. The controversy revolves around consent requirements under the Real Estate Regulatory Authority for modifications to an originally sanctioned residential blueprint.
Background of the Development Agreement
In June 2022, Lodha entered the Bengaluru real estate market by signing its first joint development agreement, acquiring a complete 100% equity stake in G Corp Homes Pvt Ltd for a residential undertaking. The property spans approximately 20 acres, where G Corp had previously constructed a project named Icon North featuring six residential towers. Lodha is developing its new venture, Lodha Mirabelle, on the remaining portion of this land parcel.
Legal Proceedings and Tribunal Ruling
In 2023, residents of Icon North filed a formal complaint with the Karnataka Real Estate Regulatory Authority, accusing Lodha of implementing substantial changes to the approved plan without obtaining proper consent from existing homeowners. The alleged modifications included constructing seven towers instead of the originally planned six, with some structures reaching heights of up to 40 storeys.
While RERA initially ruled in Lodha's favor in May 2024, the Icon petitioners escalated the matter to the Karnataka Real Estate Appellate Tribunal. On December 18, the tribunal issued a significant order stating that the developer had largely abandoned the originally sanctioned plan and adopted a substantially different new plan. The tribunal directed the de-registration of 'Mirabelle' and mandated that Lodha obtain consent from two-thirds of Icon North homeowners with registered sale deeds before applying for fresh project registration.
Resident Concerns and Developer Response
Deepa Jayaraman, an apartment owner in Icon North, expressed serious concerns about the project's scale transformation. "Home buyers did not sign up for a project of this magnitude; it was supposed to be a premium society. The dramatic increase in the number of flats, residents, vehicles, and building heights directly impacts amenities, common spaces, undivided land share, and infrastructure capacity including water supply and internal movement," she explained. "Our expectation has always been that approvals and construction adhere strictly to the original master plan, due process, and applicable law."
A Lodha spokesperson responded via email, stating that the group launched the project "after obtaining all necessary approvals from concerned authorities." The spokesperson noted that in 2023, some residents from the older development approached the court against the new project, and the "court ruled in our favor and found no merit in any of the claims." According to the spokesperson, a handful of residents with "ulterior motives" then approached the appellate authority, which accepted their plea, prompting Lodha to challenge the order in the high court where it was subsequently stayed.
Current Legal Status and Construction Limitations
Lodha challenged the tribunal's December order in the Karnataka High Court, which ruled that Lodha Mirabelle's registration would not be revoked. However, the court imposed significant restrictions, permitting only interior work to continue in three towers where construction is nearly complete according to the original sanctioned plan. The court explicitly prohibited any new construction in the remaining towers without obtaining consent from two-thirds of Icon residents. The next hearing in the high court is anticipated later this month.
Strategic Importance for Lodha's Bengaluru Expansion
Lodha ranks among India's top four bestselling developers alongside Godrej Properties Ltd, DLF Ltd, and Prestige Estates Projects Ltd. While primarily operating in the Mumbai Metropolitan Region, the developer has expanded to Pune and Bengaluru. Since Mirabelle's launch, Lodha has initiated multiple projects in Bengaluru, establishing the southern market as a crucial operational city.
Property experts emphasize that Mirabelle's success is particularly significant for establishing Lodha's reputation in this new market. "Lodha paid for 12 lakh square feet of construction and later obtained permission for an additional 8 lakh square feet. Any alteration to the project master plan requires two-thirds consent from existing residents. While the project has achieved strong sales at a market premium, these regulatory and legal complications have substantially slowed progress," explained an anonymous property expert.
Compensation Efforts and Industry Precedents
Meanwhile, the Lodha Group is attempting to secure consent from Icon North residents by offering compensation packages. This situation bears some resemblance to a 2011 case where the Competition Commission of India imposed a ₹630 crore fine on DLF for commencing work on a Gurugram project without proper approvals, increasing floor counts mid-construction, and experiencing delays. DLF challenged this penalty in the Supreme Court, where the matter remains pending.
The Lodha spokesperson affirmed that work continues according to schedule, expressing confidence in delivering homes as committed. "We are confident of delivering homes as per our commitment. We remain dedicated to preserving home buyers' trust and delivering exceptional quality," the spokesperson concluded, noting that the matter will receive detailed hearing in the High Court in coming days while construction proceeds in a phased manner.
