KRERA Takes Action Against Bengaluru Real Estate Developer for Compound Wall and UDS Violations
The Karnataka Real Estate Regulatory Authority (KRERA) has issued a strong notice to Bengaluru-based developer DC Hi Rise LLP for failing to construct a compound wall and attempting to misuse the Undivided Share (UDS) of a project. The authority emphasized the critical importance of a compound wall in defining legal boundaries and ensuring project security.
Real EstateKreraCompound WallUdsBengaluruReal EstateJul 18, 2025
The issue came to light after approximately 50 homebuyers from the DC Capitol project in Bengaluru filed a complaint. They alleged that the developer planned to use the internal driveway, part of Phase 1 of the UDS, as part of a future Phase 2 expansion.
"The developer shall construct the compound wall along the southern and western boundaries of the project as per the original sanctioned layout. The developer is also restrained from using or repurposing the internal driveway and UDS to Phase 1," the order stated. KRERA emphasized that a compound wall is not merely aesthetic but a fundamental part of a project’s legal boundary and security.
In this case, over 50 buyers, also the allottees of the project in Panathur, told KRERA that despite repeated assurances, the compound wall on the southern side of the project has not been constructed. Instead, the developer issued communications suggesting the conversion of the internal driveway, which is part of Phase 1 UDS, as a common access point for the upcoming development of Phase 2.
What is UDS? The cost of an apartment comprises two key components - the cost of the structure and the cost of the land. In a residential complex, the portion of land attributed to each apartment owner is known as the Undivided Share (UDS). This refers to the share of land jointly held by all flat owners in the building, without any specific or defined boundaries. Every apartment built on the plot is entitled to a proportionate share of the land, even though individual ownership of a specific portion of the land is not demarcated.
The swimming pool promised in the brochure has not been constructed yet. The buyers told KRERA that this omission "constitutes a contractual obligation and denies allottees the full enjoyment of the common amenities."
The authority noted that the compound walls, or structural components, were part of the sanction plan submitted by the developer at the time of RERA registration and are critical to defining the project's legal boundaries. "The authority notes that Section 14 of the RERA Act mandates the developer to adhere to the sanction plan and prohibits any deviation without the two-thirds consent of the allottees. The absence of the compound wall exposes the residential premises to unauthorized access and poses a security concern," the order said.
KRERA further said that compound walls are not just 'cosmetic' but essential to the project’s structural and legal integrity. It ordered the developer to construct the compound wall within three months. "This Authority holds that the respondent is not entitled to repurpose the UDS or driveway meant for Phase 1 allottees for any other development phase, without the lawful consent of the allottees and revised approvals from the competent planning authority. The developer is henceforth restrained from using or granting access to any portion of the Phase I infrastructure for Phase 2 or other subsequent developments," the order concluded.
KRERA’s decision sends a strong message to real estate developers in Karnataka, emphasizing the importance of adhering to legal and regulatory requirements to protect the interests of homebuyers.
Frequently Asked Questions
What is the Undivided Share (UDS) in real estate?
The Undivided Share (UDS) is the portion of land attributed to each apartment owner in a residential complex. It refers to the share of land jointly held by all flat owners in the building, without any specific or defined boundaries.
Why is a compound wall important in a real estate project?
A compound wall is crucial as it defines the legal boundary of a project and ensures the security of the residential premises. It is not just an aesthetic feature but a fundamental part of the project’s structural and legal integrity.
What action did KRERA take against DC Hi Rise LLP?
KRERA ordered DC Hi Rise LLP to construct the compound wall along the southern and western boundaries of the project as per the original sanctioned layout. The developer is also restrained from using or repurposing the internal driveway and UDS to Phase 1.
What is the RERA Act and how does it protect homebuyers?
The Real Estate (Regulation and Development) Act (RERA) is a regulatory framework that mandates developers to adhere to the sanction plan and prohibits any deviation without the two-thirds consent of the allottees. It ensures transparency, accountability, and protects the interests of homebuyers.
What are the consequences for developers who violate RERA regulations?
Developers who violate RERA regulations can face penalties, including fines, legal action, and orders to rectify the violations within a specified period. They may also be restrained from using or repurposing project infrastructure without lawful consent and revised approvals from the competent planning authority.
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