Exclusive: Bengaluru Builder to Demolish 18-Floor Apartment Tower After OC, Rebuild at Its Own Cost Over Soil Report Error
Bengaluru, July 23: In one of the most significant developments in Bengaluru’s real estate sector in recent years, leading developer SNN Properties LLP (SNN Raj Corp) has sought permission from the Greater Bengaluru Authority (GBA) to demolish and reconstruct an 18-storey residential tower after receiving an Occupancy Certificate (OC), citing structural concerns arising from what it describes as an erroneous pre-construction geotechnical investigation report.
Documents accessed by The Bengaluru Live reveal that the developer has formally written to the Chief Commissioner, Greater Bengaluru Authority, seeking permission to dismantle Wing E3 of its SNN Raj Eternia project and reconstruct it from the foundation level.
According to the representation dated June 24, 2026, the project had received approval for constructing 143 dwelling units and subsequently obtained an Occupancy Certificate on April 30, 2026, for Wings E1, E2 and E3, comprising Basement + Ground + 18 Upper Floors.
However, the company states that while preparing for handing over apartments to buyers, its engineering team observed settlement-related anomalies in Wing E3, following which structural consultants were immediately engaged for an emergency technical review.
According to the developer, the structural consultants concluded that Wing E3 had undergone excessive differential settlement. The representation further states that although the structural design conformed to the original geotechnical investigation report, the actual sub-soil conditions differed significantly from what had been reflected in the pre-construction soil investigation.
The company says it thereafter commissioned a second independent geotechnical investigation, which allegedly concluded that the original pre-construction soil investigation report prepared by M/s Nagadi Consultants contained significant errors and failed to accurately represent the site’s actual soil conditions.
Based on these findings, SNN Properties states that its structural consultants advised that Wing E3 was unsafe for occupancy, prompting the company to voluntarily decide to dismantle the entire structure up to the foundation level and reconstruct it using a revised foundation design based on corrected geotechnical data. The company has requested the Greater Bengaluru Authority to grant permission for demolition and reconstruction at the earliest.
Builder Says Customer Safety Comes First
Responding to queries from The Bengaluru Live, SNN Raj Corp said the decision reflects the company’s commitment to transparency, engineering excellence and customer safety.
The developer said it has decided to completely reconstruct the affected 49 apartments at its own expense, while ensuring that homebuyers do not bear any financial burden arising out of the rebuilding exercise.
Addressing homeowners, Anuj Sanjay Jain, Director, SNN Raj Corp, said:
“We believe in complete transparency as a builder, and quality is what we stand for. Hence, even though the blocks are fully completed and almost ready to hand over, we have taken the decisive step to reconstruct the 49 houses. Our priority is ensuring that our customers get only a perfect home — nothing short of it.”
The company said the project comprises 972 apartments, of which 822 units have already been handed over, while the affected wing consists of 49 apartments.
SNN Raj Corp also announced that it would bear the entire multi-crore reconstruction cost, ensuring zero additional financial burden on affected buyers.
According to the company, reconstruction and fresh handover are expected to take an additional 18 to 20 months.
RERA Informed About the Issue
The developer further stated that it has already approached the Karnataka Real Estate Regulatory Authority (RERA) to formally inform the regulator about the issue, the alleged error in the external geotechnical investigation and its voluntary decision to reconstruct the affected building.
Questions Over GBA’s Regulatory Oversight
While the developer has voluntarily chosen to reconstruct the building, the episode has also raised serious questions regarding the regulatory oversight exercised by the Town Planning Department of the Greater Bengaluru Authority, which functions under the supervision of the Chief Commissioner.
The Occupancy Certificate for Wings E1, E2 and E3 was issued on April 30, 2026. Yet, according to the developer’s own representation, structural concerns were detected shortly thereafter, ultimately leading to the decision to demolish and reconstruct the 18-storey tower.
The development raises several important questions:
- Were all statutory structural and technical verifications completed before granting the Occupancy Certificate?
- Did the approval process identify any warning signs?
- If not, what safeguards failed?
- Has the Greater Bengaluru Authority initiated any internal inquiry into the approval process?
- Will responsibility be fixed if any regulatory lapses are established?
At the time of publication, it remained unclear whether any departmental inquiry had been initiated into the officials involved in processing and approving the Occupancy Certificate.
Government Yet to Clarify Position
The issue is also expected to attract attention at the highest levels of the Karnataka Government considering that the Greater Bengaluru Authority is among the State’s flagship urban governance reforms.
It also remains unclear whether Chief Minister D.K. Shivakumar and Greater Bengaluru Development Minister Krishna Byre Gowda have been formally apprised of the developments or whether either has sought a report from the Greater Bengaluru Authority regarding the circumstances under which an Occupancy Certificate was issued for a tower that the developer has now proposed to demolish and reconstruct.
Original Soil Investigation Under Scanner
A crucial aspect of the representation is the developer’s allegation that the original pre-construction geotechnical investigation carried out by M/s Nagadi Consultants was fundamentally erroneous.
According to the company, an independent investigation found significant variations between the original soil report and the actual site conditions, which allegedly resulted in excessive differential settlement of the building foundation.
Along with its representation, SNN Properties informed the GBA that it had enclosed:
- Occupancy Certificate dated April 30, 2026;
- Structural Consultant’s Preliminary Assessment Report;
- Original pre-construction geotechnical report prepared by M/s Nagadi Consultants;
- Independent geotechnical investigation report prepared by Land and Off-Shore Foundation; and
- Technical note regarding settlement observations and reconstruction proposal prepared by URGE.
A Rare Move in Indian Real Estate
Industry observers say it is highly unusual for a developer to voluntarily seek demolition of a newly completed residential tower after obtaining an Occupancy Certificate.
By deciding to reconstruct the affected 18-storey building entirely at its own cost while compensating homeowners through a zero-cost rebuilding plan, SNN Raj Corp has taken an unprecedented step that is likely to be closely watched by regulators, developers and homebuyers across the country.
The Bengaluru Live has sought responses from the Greater Bengaluru Authority, the Office of Chief Minister D.K. Shivakumar, the Office of Greater Bengaluru Development Minister Krishna Byre Gowda and M/s Nagadi Consultants. Their responses will be incorporated as and when received.
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