Builders flouting carpet-area order

Builders in the city continue to defy both the state government as well as the Maharashtra Chambers of Housing Industry (MCHI) on selling flats on the basis of carpet area (actual area of the premises).

Builders in the city continue to defy both the state government as well as the Maharashtra Chambers of Housing Industry (MCHI) on selling flats on the basis of carpet area (actual area of the premises). This defiance was on display at the four-day property exhibition organised by the MCHI at the Bandra-Kurla Complex, which had more than 150 builders exhibiting their properties and almost all priced on super built-up area.

HT Image

Under super built-up, builders calculate the actual size of the flat as well as common areas and facilities like staircases, lobbies, lifts and even playgrounds while deciding the sale price of the flat.

While the state has insisted that flats only be sold by carpet area, the MCHI had directed its members to disclose the actual size of the flat that buyers would get on possession.

Speaking to HT, Sunil Mantri, chairman, Maharashtra Chambers of Housing Industry (MCHI) agreed that many builders may have failed to abide by the order. “The whole directive was aimed at ensuring that the buyer knows the actual area he would get. I will ask everyone to follow the directive instantly,” Mantri said.

He, nevertheless, defended the sale on the basis of super built-up area. “The state government approves building plans on the basis of built-up area and even stamp duty is charged accordingly,” Mantri said.

“Customers are ignorant of the concept of the carpet area and have to be educated on basis of super built up area. But, we sell on carpet area and even the agreement is done on that basis,” said Sukhraj Nahar, director, Nahar Group. Noted real estate lawyer Vinod Sampat said, “These are cases of cheating and the state has been pampering them due to their money power.”

Minister of state for housing, Sachin Ahir, said MCHI should ask its members to sell flats on carpet area only. “We plan to take strict punitive action against erring builders,” Ahir said.