Extra Floors, Smaller Land Share? TG RERA's Smondo Gachibowli Order for Hyderabad Buyers
TG RERA's 5 October order in the Smondo Gachibowli case directed compensation for two Hyderabad buyers whose agreed 431.15 sq ft undivided share of land shrank after the approval rose to G+20. What the order directs, how RERA consent rules work, and what to check in your agreement.
On 24 October 2016, a Hyderabad couple booked flat B-1109 at Smondo Gachibowli, a 1,400 sq ft home priced at Rs 72.42 lakh. Their agreement for sale, signed on 9 January 2017, gave them 431.15 sq ft of undivided share of land, about 0.243 percent of the property. Then the approved building grew from 16 upper floors to 20. Nearly a decade later, on 5 October, the Telangana Real Estate Regulatory Authority directed the developer to compensate the buyers for the land share that the extra floors took away.
The short answer. In Complaint No. 254 of 2025, as reported by LiveLaw, TG RERA directed PBSR Developers to compensate two buyers for the gap between the promised 431.15 sq ft UDS and the smaller share left after the project went from G+16 to G+20, pay 10.70 percent annual interest from 30 June 2018 until possession, obtain the occupancy certificate and register the sale deed within 60 days of possession or the certificate, whichever is later. The trade-off: the buyers still pay the outstanding contract balance, including a Rs 4,99,850 possession instalment, and the order arrives roughly eight years after the extended possession date.
What did TG RERA decide in the Smondo Gachibowli case?
TG RERA held that the developer must recognise the land share linked to the original 16-floor approval and compensate the buyers for any reduction. According to LiveLaw's account of the order in Cherukuri Hema and another versus PBSR Developers Private Limited, decided by members Laxmi Narayana Jannu and K. Srinivasa Rao, the developer relied on Clauses 5 and 12 of the agreement to justify additional construction and the resulting change in land share.
The Authority rejected that reading. LiveLaw quotes the order as saying that "development rights and ownership rights in an undivided share of land are legally distinct concepts". In plain terms, a builder's permission to build more is one thing; the buyer's ownership of a fixed slice of the land is another.
The order also rejected an increase in the flat's price from Rs 72.42 lakh to Rs 81.35 lakh, because, as reported, the original agreement governs over the developer's unilateral account statements. The developer had received about 90 percent of the consideration without delivering possession, obtaining the occupancy certificate or registering the flat.
Why does undivided share of land matter so much to a flat buyer?
Your undivided share is the part of the plot you own along with every other flat owner, and it is the one asset that survives the building itself. The land under the flat is what gives a resale or redevelopment negotiation its value.
The Real Estate (Regulation and Development) Act, 2016 builds this into the transfer of title. Section 17(1) of the Act, published in the Gazette and hosted by TG RERA, says the promoter shall execute a registered conveyance deed in favour of the allottee "along with the undivided proportionate title in the common areas to the association of the allottees or the competent authority". When more floors are added to the same plot, the same land is split across more flats, so each existing owner's proportion can fall unless the agreement protects it.
That is exactly the arithmetic the Smondo buyers challenged. Their agreement stated a figure, 431.15 sq ft or 40.05 sq m, and the Authority treated that stated figure as an ownership right rather than an estimate the developer could revise.
Can a builder add floors after you have booked a flat?
A builder can seek revised approvals, but the RERA Act sets consent rules once plans have been disclosed to buyers. Section 14(2) of the Act says that after sanctioned plans, layout plans and specifications are disclosed, the promoter shall not make additions and alterations in respect of the flat agreed to be taken without the previous consent of that person, apart from specified minor changes.
For changes beyond your own unit, Section 14(2)(ii) requires "the previous written consent of at least two-thirds of the allottees, other than the promoter, who have agreed to take apartments in such building" before other alterations or additions in the sanctioned plans, layout plans and specifications of the buildings or common areas. The Act's explanation to the minor-changes proviso states that minor additions or alterations exclude structural change "including an addition to the area or change in height".
The Ministry of Housing and Urban Affairs FAQs on RERA describe the same rule as a requirement to take approval from two-third of the allottees before modifying the plans. For buyers booking today, both layers apply: the agreement and Section 14.
What does the order mean for buyers in other Hyderabad projects?
The order gives buyers a reasoned precedent to cite when a stated UDS figure is reduced after extra floors are added, but it is one decision on one agreement. Its reasoning rests on two facts that buyers should check in their own paperwork: a specific UDS number in the agreement, and a later approval that increased the built-up area on the same land.
Where an agreement only says the buyer gets a "proportionate" share without a number, the comparison is harder to prove. Where the number is written down, the Smondo reasoning gives a buyer a clear line of argument built on that written figure. If you are weighing a pre-launch or UDS-heavy offer, our earlier explainer on UDS-based pre-launch sales in Hyderabad covers the risks that arise before registration.
| Item | As agreed | What TG RERA directed, as reported |
|---|---|---|
| Undivided share of land | 431.15 sq ft, about 0.243 percent | Compensation for the difference between promised and actual UDS, by value |
| Building height | 16 upper floors | Developer to recognise the land share linked to the original 16 floors |
| Flat price | Rs 72.42 lakh | Increase to Rs 81.35 lakh based on unilateral statements rejected |
| Possession date | 31 December 2017, extendable to 30 June 2018 | 10.70 percent annual interest from 30 June 2018 until possession, excluding COVID-19 extension periods |
| Sale deed | Registration on completion | Register within 60 days of possession or occupancy certificate, whichever is later |
How is compensation for a reduced land share worked out?
As reported, the Authority directed compensation measured by the value difference between the promised and the actual undivided share. LiveLaw's account of the order gives no rupee figure, so the amount depends on how the land share is valued in implementation.
The logic is about unjust enrichment. LiveLaw reports that the Authority described the developer keeping both the land value and the payment for it as unjust enrichment. Buyers paid for a flat that came with a defined land share; if the share shrinks, the difference has a monetary value that belongs to the buyer.
Separately, the interest award follows the delay route under the Act. Section 18(1) provides that where an allottee does not intend to withdraw from the project, the promoter shall pay interest for every month of delay till the handing over of possession, at the prescribed rate. The Smondo buyers chose to stay, which is why the order directs possession with interest rather than a refund. Claims for additional compensation are adjudged by an adjudicating officer, a judicial officer who is or has been a District Judge, under Section 71(1).
What should you check in your own agreement for sale?
Read the agreement for a specific UDS figure, the approved floor count and any clause that lets the builder change either. The Smondo developer relied on two clauses; your agreement will have its own versions, often in sections on additional construction, revised plans or common areas.
- Find the UDS figure in sq ft or sq m and the percentage of the total plot, and note the clause number.
- Note the number of floors and flats in the sanctioned plan disclosed to you, and keep a copy of that plan.
- Search the agreement for clauses on additional floors, revised plans or future construction, and mark any that mention land share.
- Check the project page on the TG RERA portal for revised plans or amended approvals uploaded after your booking.
- If the builder seeks consent for plan changes, ask in writing how the change affects your stated UDS before signing anything.
- Compare the UDS in your draft sale deed with the figure in your agreement before registration.
- Keep every payment receipt and demand letter, since disputed price increases are tested against the original agreement.
Once flats are handed over, the association of allottees takes over common areas. Our guide to TG RERA conveyance to the association of allottees explains how that transfer works and why the land share recorded in each deed matters to it.
How do you take a UDS dispute to TG RERA?
You file a complaint under Section 31(1) of the RERA Act, which says any aggrieved person may file a complaint with the Authority or the adjudicating officer for any violation or contravention of the Act or the rules and regulations against any promoter, allottee or real estate agent. The Smondo buyers filed under this route.
Build the file around documents: the agreement with the UDS clause, the original and revised sanctioned plans, payment receipts, and any letter in which the builder told you about extra floors. The Authority's reasoning in this case leaned on what the agreement actually said, so the clause and the figure are the core of the claim.
Expect time. The Smondo booking dates to 2016 and the order to October 2026. LiveLaw also reports that the Authority noted further penal action could follow for non-compliance, which matters because an order is only as useful as its execution.
Frequently asked questions
What did TG RERA say about extra floors and undivided share?
As reported by LiveLaw, TG RERA held in the Smondo Gachibowli order that development rights and ownership rights in an undivided share of land are legally distinct. It directed the developer to recognise the land share linked to the original 16 floors and compensate the buyers for the shortfall from their agreed 431.15 sq ft UDS.
What interest did TG RERA award the Smondo buyers?
As reported by LiveLaw, the Authority directed the developer to pay 10.70 percent annual interest on amounts paid, from 30 June 2018 until actual possession, excluding specified COVID-19 extension periods. The buyers must pay the outstanding contract balance and a Rs 4,99,850 possession-linked instalment on possession and registration.
Does a builder need buyer consent to change sanctioned plans?
Section 14(2) of the RERA Act requires the previous consent of the allottee for additions and alterations to their own flat, and the previous written consent of at least two-thirds of allottees, other than the promoter, for other alterations or additions in the sanctioned plans, layout plans and specifications of the building or common areas.
When must the sale deed be registered under this order?
LiveLaw reports that TG RERA directed PBSR Developers to obtain the occupancy certificate, deliver possession with the agreed amenities, and register the sale deed within 60 days of possession or issuance of the occupancy certificate, whichever is later. The complaint was disposed of, with the Authority noting that penal action could follow for non-compliance.
Last updated 2026-10-22. PropNewz Team.
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