Builders discount ethics, govt norms at MCHI fair | mumbai | Hindustan Times
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Builders discount ethics, govt norms at MCHI fair

Is there much hope for flat-purchasers when builders are flouting code of ethics set by the Maharashtra Chambers of Housing Industry (MCHI) right under its nose?

mumbai Updated: Oct 08, 2011 01:28 IST
Naresh Kamath

Is there much hope for flat-purchasers when builders are flouting code of ethics set by the Maharashtra Chambers of Housing Industry (MCHI) right under its nose?

In the ongoing exhibition organised by the MCHI, builders are charging consumers for super-built up area, extracting a premium for floor rise and selling parking lots — all practices proscribed by the MCHI.

Worse, among the ones indulging in these practices is Gundecha Builders, a company owned by MCHI president Paras Gundecha.

When charged for super built-up area, customers could end up shelling out around 35-50 % more. This is in conflict with a diktat issued by the state government and the MCHI’s code of ethics. Gundecha Builders is selling 960 sq ft 2-BHK flats in its Andheri Symphony project at Rs14,300 per sq ft.

However, in practice, the buyer would end up getting just 653 sq ft of area. Similarly, Neev Builders is quoting Rs16,200 per sq ft for the 1,300 and 2,700 sq ft flats in its Vile Parle project—Neev Palazzo. Here, buyers would be getting just 871 and 1,809 sq ft apartments respectively.

“This is totally wrong and unethical,” said Sachin Ahir, minister of state for housing, who inaugurated the exhibition on Thursday.

MCHI president Paras Gundecha claimed that the organisation had asked all exhibitors to quote price of both, carpet and super-built up area. “If they are not doing so, I will take up this matter urgently,” said Gundecha.

Jitendra Jain, chairman and managing director, Neev Builders said that the practice was in place for years. “However, we also take care to ensure all agreements are as per carpet area. It takes time to adopt to new practices,” he added.

Meanwhile, Jaycee Homes Ltd and Kohinoor City are selling parking spaces at Rs10 lakh per slot in their projects at Santacruz and Kurla respectively. Ackruti is selling parking lots at its Bandra (E) project for Rs8 lakh apiece.

Defending the sale of parking slots, Gundecha said that constructing these lots costs crores of rupees, which had to be recovered from consumers.