When buyers signed up for homes in the DC Capitol project in Panathur, Bengaluru, they were promised more than just brick and mortar. Their purchase included a fractional claim in the land beneath their apartments, the Undivided Share (UDS). But that invisible asset, rarely understood by most homebuyers, has now become the battleground of a brewing conflict.
The issue surfaced when over 50 homebuyers submitted a complaint to the Karnataka Real Estate Regulatory Authority (KRERA), accusing the developer of attempting to convert the internal driveway a part of Phase 1 and legally part of the allottees' UDS into a shared access for a proposed Phase 2. What seemed like a layout adjustment was, in the eyes of the homeowners, a violation of their land rights, as per a report by Hindustan Times.
KRERA Cracks Down on Layout Violations
KRERA responded with a stern order. The authority instructed the developer to construct the compound wall as originally sanctioned along the southern and western boundaries. It also explicitly prohibited any use or reallocation of Phase 1's internal driveway or common space for the benefit of future phases.
This wasn't merely a design dispute. At the heart of the case was the concept of UDS, an often overlooked but critically important component of apartment ownership. It establishes the portion of the plot's land that belongs to each flat owner legally. You can't touch it, you can't mark it, yet it has huge legal and monetary value.
The buyers, in this case, pointed out that contrary to repeated assertions, the compound wall on the southern side of the layout had not been constructed. Instead, the developer released letters suggesting turning that space into an access point for the next phase. The Phase 1 UDS also depicted that the existing residents could not claim exclusivity on the internal driveway. It would now become part of the area used for further development and did not conform to the conditions laid down in L1-l.
KRERA made it clear that compound walls, as per sanctioned layouts, aren't decorative choices but structural and legal necessities. Their absence not only poses a security threat but also opens the door to unauthorised access and functional dilution of homeowners' property, as per the report.
What Is UDS and Why It Matters For Homebuyers?
In any apartment complex, the property is made up of two things: the constructed structure and the land it stands on. While the flat itself is privately owned, the land is owned collectively by all apartment owners through their UDS.
This share is proportional to the carpet area of each unit compared to the total carpet area of all units combined. For example, if a project stands on 10,000 sq. ft. of land and a particular flat has a carpet area that forms 10 per cent of the total carpet area, the flat owner's UDS would be 1,000 sq. ft.
Importantly, this share of land cannot be sold independently. It is legally tied to the apartment. UDS plays a crucial role in property valuation because land appreciates over time, while buildings depreciate. That means the higher your UDS, the more your property is likely to gain in value, especially in land-constrained cities like Bengaluru.
Redevelopment Stakes Tied to UDS
Beyond resale value, UDS also determines rights during redevelopment. In ageing buildings, when structures are demolished and rebuilt, owners with higher UDS stand to gain larger new units or greater monetary compensation. It's not just about today's value; it's a long-term stake in tomorrow's potential.
However, disputes arise when UDS is misrepresented or tampered with. That's exactly what the DC Capitol buyers fear. The internal driveway, listed as part of their common property, is being turned into a shared access point for future residents who have not contributed to its cost or legal ownership.
As per the RERA Act, alterations to the sanctioned plan would need the approval of two thirds of the allottees. No such permission from this court was requested or granted here. KRERA's intervention serves as an affirmation that deviation from approved layouts is not only a betrayal of trust but a defiance of regulatory law.
