Lodha's Bengaluru Project Faces Legal Hurdles Over Unauthorized Plan Changes
Lodha Developers' first venture into the Bengaluru real estate market has hit a significant legal roadblock, with regulatory authorities questioning substantial changes to the approved project plan. The Mumbai-based developer's Lodha Mirabelle project now faces construction restrictions following a tribunal ruling that has implications for the company's expansion strategy in southern India.
In June 2022, Lodha entered the Bengaluru market through a joint development agreement, acquiring a 100% equity stake in G Corp Homes Pvt Ltd for a residential project spanning 20 acres. The land already housed Icon North, a six-tower project developed by G Corp, while Lodha planned to develop Lodha Mirabelle on the remaining portion of the site.
In 2023, Icon North residents filed a complaint with the Karnataka Real Estate Regulatory Authority (RERA), alleging that Lodha had modified the approved plan without obtaining their consent. The residents specifically objected to the construction of seven towers instead of the originally planned six, with some structures reaching heights of up to 40 storeys.
Initially, RERA ruled in Lodha's favour in May 2024. However, the Icon petitioners escalated the matter to the Karnataka Real Estate Appellate Tribunal (K-REAT), which delivered a different verdict on 18 December. The tribunal concluded that the developer had 'largely abandoned the originally sanctioned plan and adopted and registered a new one.'
The K-REAT order mandated specific actions from the developer: - De-registration of the 'Mirabelle' project - Obtaining consent from two-thirds of Icon North homeowners with registered sale deeds - Fresh registration application for the modified project
Lodha subsequently challenged this decision in the Karnataka High Court, which provided partial relief. The high court ruled that Lodha Mirabelle's registration would not be revoked but imposed construction restrictions. Interior work can continue in three towers where construction is nearly complete according to the original plan, but no new construction can commence in other towers without consent from two-thirds of Icon residents.
Deepak Jayaraman, an Icon North apartment owner, expressed concerns about the project's expanded scale. 'Home buyers did not sign up for a project of this scale; it was supposed to be a premium society. The sharp increase in the number of flats, residents, vehicles and building heights has direct implications on amenities, common spaces, undivided land share and infrastructure capacity such as water, internal movements,' Jayaraman stated.
A Lodha spokesperson defended the company's position, stating that the project was launched 'after obtaining all the necessary approvals' from relevant authorities. The spokesperson characterized the appellate tribunal's decision as influenced by 'a handful of residents with ulterior motives' and confirmed that construction continues in a phased manner while the matter awaits detailed hearing in the high court.
The Mirabelle project holds significant importance for Lodha's expansion beyond its traditional Mumbai Metropolitan Region stronghold. Since launching Mirabelle, the developer has initiated multiple projects in Bengaluru, positioning the southern city as a key operational hub alongside Mumbai and Pune.
Property experts note that the project has achieved strong sales at premium pricing, but the regulatory challenges have impacted construction timelines. The developer is currently attempting to secure resident consent by offering compensation to Icon North homeowners.
The next hearing in the Karnataka High Court is scheduled for later this month, which could provide clarity on the project's future development timeline and construction permissions.
