South City at a Crossroads: What the Court Decree Means for Every Owner
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28 March 2026 Subject: Clarification to South City Owners regarding O.S. No. 401/2012
Dear Apartment Owners and Residents of South City,
Namaskar.
It has come to the attention of several residents that certain messages are being circulated questioning the consent letter supporting SUGRUHA (South City Group Housing Apartment Owners Association) in relation to the decree passed in O.S. No. 401/2012.
The said messages also make serious and unfounded allegations regarding financial irregularities and the management of SUGRUHA.
SUGRUHA considers it appropriate to place certain facts before the owners so that residents may have clarity on these issues. *ALL THESE ALLEGATIONS ARE FALSE*. The reasons are explained below:
The apprehensions SUGRUHA is trying to create among the owners by so-called their members (most of whom are defaulters, occupants of illegal car parking slots, involved in illegal collections, and volunteers without accountability)
Reply on the issue of defaulters
During the period when L&T was maintaining the South City estate, unlike the present system under SCMC, monthly maintenance invoices were not regularly issued to apartment owners and audited statements of expenditure were not shared with the community. As of 31st Mar 2010, the largest defaulter to the maintenance account was to the extent of ₹1,24,00,000 (unpaid maintenance dues from day 1 of the start of the project for unsold apartments – which were to be paid by the promoter and the developer – Shri Ranka and L&T respectively). Furthermore on 1st April 2010, L&T this liability (maintenance liability of unsold apartments) was retrospectively transferred on to the owners of sold apartments – this is akin to a financial fraud. It is only after handing over the maintenance responsibility of the South City estate that L&T issued letters to many apartment owners claiming unpaid outstanding dues. But they provided no evidence by way of audited statement of expenditure to support this claim. The owners have a right to know how they are being charged. These matters have been questioned and disputed by several owners who have sought clarity regarding the basis of such claims and the supporting accounts. These amounts continue to be disputed.
Reply on the issue of illegal car-parking slots
SUGRUHA has not allotted any car-parking slots to any owner or resident. Allocation and management of car parking were handled earlier by L&T and subsequently by SCMC.
Reply on the issue of illegal collections
SUGRUHA has been in existence since 2009. L&T handed over the maintenance of the estate in July 2013. SUGRUHA has been performing several community related activities for the benefit of the residents since 2009. It continues performing only those activities that are in line with SCMC guidelines. It would be worthwhile to mention that SUGRUHA only manages the use of CA-2 site. As far as community wide festivals and events are concerned, SUGRUHA does not collect any monies. It is the respective organizing committees (independent of SUGRUHA) that arrange these festivals and events and manage their funds. These organizing committees also pay for the electricity consumed and other resources used as convenience charges to SCMC.
Reply on the issue of volunteers without accountability
Volunteers associated with SUGRUHA function in accordance with its Bye-laws and are accountable within that framework.
At no point in time has L&T stated that block-level associations will be formed in South City
Reply This claim is untrue. Documents filed by L&T in certain legal proceedings have referred to a structure involving block-level associations and an apex body. These documents form part of the records in those proceedings.
On the CA-2 site:
Reply: In 2010, the Bangalore Development Authority (BDA) issued a notification calling for bids for establishing a multiplex on the CA-2 site. This led to proceedings initiated by SUGRUHA before the Honourable High Court of Karnataka. The Honourable High Court directed BDA to consider the application submitted by SUGRUHA seeking use of the CA-2 site for the benefit of South City residents. The matter continues to be pursued in accordance with law.
On the issue relating to Ranka Villa land:
Reply: SUGRUHA has irrefutable evidence that L&T purchased the unutilized Floor Area Ratio (FAR) of the Ranka Villa land for use in the South City project. As a consideration they paid ₹3 crores to Shri Ranka from the deposit money paid by each one of us for availing utility (water, electricity etc.) connections. L&T has admitted this in an affidavit filed in the Competition Commission of India (CCI), in the case filed by SUGRUHA.
On zoning and construction permissions:
Reply: Any development on the Ranka Villa property would necessarily be subject to applicable planning regulations and approvals from the competent authorities. SUGRUHA’s position has been that the FAR relating to that property had already been utilized within the South City project and hence there should be no further FAR available for use.
On the issue of Property Management Services (PMS)
Reply: Matters relating to PMS fall within the scope and supervision of SCMC, which presently functions as the Court-appointed Receiver for the estate.
Dear owners, it is important that all of us (owners and residents) rely on verified information and documented records while forming our views on these issues. Please be wary of unverified messages being circulated. Their intended purpose is to cause confusion, anxiety and distrust within the community.
We request all residents to help SUGRUHA to focus on important community matters such as GAIL piped gas project, protection of residents’ rights, and the welfare of the South City community etc.
This clarification is being issued for the purpose of informing apartment owners about matters reflected in records and legal proceedings.
We thank you for your continued trust, cooperation and support.
Yours very sincerely,
SUGRUHA
Communications issued to South City residents
