Builders defy rules on pricing of flats | mumbai | Hindustan Times
Today in New Delhi, India
Jan 23, 2017-Monday
New Delhi
  • Humidity
  • Wind

Builders defy rules on pricing of flats

mumbai Updated: Apr 10, 2010 01:19 IST
Naresh Kamath
Naresh Kamath
Hindustan Times
Highlight Story

Despite the state government’s rules, builders are still selling flats on the basis of super built-up area instead of carpet area.

At the ongoing property exhibition organised by the Maharashtra Chambers of Housing Industry (MCHI), buyers are forced to pay at least 30-40 per cent more due to this practice.

The Acme Group is selling 2-BHK flats for its Acme Sweet Project at Andheri for Rs 11,000 per square foot. The rate Acme is charging is for a 920 square feet flat, but the carpet area is just 600 square feet.

Talking to Hindustan Times, Pravin Doshi, President, MCHI and chairman Acme Group said builders are transparent in their dealings.

“We tell the buyers the super-built up and the carpet area. The most important part is the final amount to be paid,” said Doshi.

The carpet area is the area that can be actually utilised by the flat owner while the super built-up includes the staircases, lifts and common amenities.

At the exhibition, Nahar builders is charging Rs 7,500 per square foot for a 1,143 square feet flat, when the carpet area offered is 792 square feet (31 per cent less) at its Powai project. Kanakia Spaces is asking Rs 11,500 per square foot for its 2,600 square feet flat for its Borivli project when the actual carpet area is just 1,699 square feet (35 per cent less) while Everest Developers is charging Rs 4,500 per square foot for a 831 square feet flat which has a carpet area of just 593 square feet.

Defending the rates, J.S. Augustine, associate director, Everest, said: “Consumers are used to the concept of super-built up area and know how much they would get as carpet area. However all our agreements are made on basis of the carpet area,” said Augustine.

Consumers have flayed this practice. “They are taking away my hard earned money but I have no choice,” said Mahesh Dhaifude, manager in a printing firm.

Another buyer, Bipin Kumar, a client service manager in an advertising firm said that such costs only make homes unaffordable for the masses.

A senior official in the state housing department said that quoting prices based on super-built up area is illegal. “Builders are violating the law and the buyers should come forward and complain,” said the official who refused to be quoted citing that the assembly session was in progress.