I booked a commercial space with Omaxe Pvt Ltd in Chandigarh in Nov 2010. The area of the office space was 615.04 Sq Ft (Super Area) at the time of booking I had opted for a down payment plan that was payment of 95% of total cost plus 50% of PLC if any. The builder was giving 12% returns on the booking amount till offer of possession. No dispute on this as builder did give us returns till offer of possession. The rest 5% of the cost and any additional charges were to be paid at the time of possession. So I paid around 29 Lacs (95% of total cost) at the time of booking. Now in January 2018, the builder has sent an intimation of offer of possession with extra demand of 22 Lacs (cost of increased super area ) along with 8.30 lacs (balance 5% + additional charges) total 30 lacs, as the builder has increased the Super Area from 615.04 to 925.35 Sq Ft and there is no change in carpet area though. This is without any prior intimation or any consent from me. This increase in super area is almost 51% of original area. In the buyer builder agreement, it is mentioned that at the time of possession, the area may increase or decrease. This is justifiable only of there is a marginal change in the area. But 51% increase is not at all acceptable. Could you please advice me what legal options I have against the builder ? Please let me know if you need any more information from my side. Thanks a lot.
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1) refuse to pay for additional area demanded by builder
2) builder can sell only as per carpet area . there is no increase in carpet area
3) the 50 percent increase in super built up area is unjustified
4) pay 8.35 lakhs being balance amount due and pyable by you
5)file complaint against builder before consumer forum and seek orders to set aside demand raised by builder for Rs 22 lakhs being demand for increase in super built area
Respected My Ajay As you have stated that builder can sell only on the basis of carpet area, but in the sale agreement only super area is specified as the sale able area. Also a clause that states that the area may change at the time of possession where do my appeal in the court stands? Can I demand full refund of my paid money with interest due to the unethical practices by the builder? Do I need a lawyer to contest on my behalf in the consumer court? Thanks,
1) sale can only be only basis of carpet area
2) if it has been sold on basis of super built up area it is illegal
3) further super built up area cannot increase by 51 per cent at time of possession
4) better engage a local lawyer and file complaint before consumer forum
5) dont cancel your booking . chances of obtaining refund are bleak as most builders are facing financial problems
Builder could not have increased the super-area unilaterally.
Moreover, since no approval was sought from you regarding variation of such area, the additional demand from the builder is unsustainable.
Send a legal notice to the builder calling upon him to recall the extra/additional demand raised by him.
If you had purchased this shop for self-employment, you have the option to approach the consumer court in the instant matter.
1) please make complaint in consumer forum in your city. And explain all details in front of them.
2) you can narrate in details put on paper in chronological order all transactions and communication done with builder. Present in local city consumer forum.
3) You don’t need to engage the services of any Advocate and can file your complaint of your own. The consumer protection Act has provided a very simple procedure to file the complaint that even a layman who is not from the law background, can file the complaint of its own.
Even there is no requirement of any court fee to be paid at the time of filing any complaint in the Act.
Hello sir , the increase in super carpet area at time of posession is generally mentioned by the builder as there can be a slight changes in the actual layout plan after completion of project .. However , an increase of 50 percent is not justified and is a immoral aproach of builder .. It is requested to send a reply to the demand letter of builder and file complaint in the state forum Chandigarh
1. You can yourself lodge a proper application /complaint against the Builder, in the local Consumer Court /Forum, with all the relevant documents.
Keep Smiling .... Hemant Agarwal
1. As it is an ongoing project and possession notice sent on Jan 2018, the project comes within the ambit of Real estate regulation Act. Also, as this property is in chandigarh, this is covered under Punjab State Real Estate (Regulation and Development) Rules, 2017.
2. In the buyer builder agreement, it is mentioned that at the time of possession, the area may increase or decrease == As per S.4(3) of the punjab act, The promoter shall disclose the size of the apartment based on carpet area even if earlier sold on any other basis such as super area, super built up area, built up area etc. which shall not affect the validity of the agreement entered into between the promoter and the allottee to that
extent
Conclusion: Based on the aforesaid provision, the builder is liable to disclose the extent of super area in the agreement and cannot claim now for having effected the change. Therefore, you can very well challenge it in Regulatory authority as well as in district consumer forum.
If the builder wants to undertake additional construction, which is not part of the layout plan shown to flat allottees at the time of executing the purchase agreement he must obtain the consent of the allottee.
In cases of the builder makes changes in the use of land or in the layout plan and the structures with respect to the one given in the agreement, the allottee must send a legal notice to the builder and if he does not respond to the same the allottee can file a complaint against the builder in the consumer forum or file a civil suit in a civil court.
The act of your builder is illegal and his services are deficiency of services by accepting the wrong way to its customer.
Further, no approval was taken from you regarding variation of such area,so the additional demand from the builder is unsustainable.
Finally, you can cancel the booking an can ask for full paid amount with interest including compensation for deficiency of services by adopting wrong way to extract amount from a genuine customer like you.
You should send a legal notice after narrating all the facts as you mentioned here and thereby direct him to pay the above said amount due to their deficiency of services. If within the period of 15 days not get any response from him , better to file a complaint before the consumer court on the basis of the legal notice including all the proofs you have. Sure you will get relief from the court .
Recently Unitech Builder was penalized Rs 3 crore by the National Consumer Dispute Redressal Commission, for deficiency of services.
Good Luck and dont forget to positive Rating.
Hello,
Yes you can approach the consumer forum and claim the entire money with interest for the unethical and unfair practices done by the builder. Increasing 51% area is not justifiable at all.
Regards
Also if you want you may present your case yourself before the consumer forum.
It is additionally advised that you take help of a lawyer in drafting the case and other documents.
Regards
You can demand the details of the increased super area.
The area of a property is often calculated in three different ways – carpet area, built-up area and super built-up area. Hence, when it comes to buying a property, this can leads to a lot of disconnect, between what you pay and what you actually get.
Carpet Area Based Pricing
For example, an apartment with a super-built area of 1,000 sq. ft in an upscale area in southern Kolkata has a saleable price of Rs.5,000 per sq. ft, which totals to a price of Rs.50 lakh. Let’s assume, out of this 1,000 sq. ft the carpet area (or the usable space excluding the space occupied by walls & common area) of the property is 700 sq. ft, and the rest 300 sq. ft is space for walls, common spaces like passages, staircases, lift-well etc. From now on, with the implementation of the new rule, buyers will be paying only for the carpet area of 700 sq. ft.
The Financial Equation and how it Affects you?
Irrespective of whether it’s super-built or carpet area, there wouldn’t be much difference as far as the net pricing of a property is concerned. Developers won’t be paying for the common spaces out of their own pocket, so they will adjust the price per sq. ft and charge the carpet area of 700 sq. ft at Rs.7143 to get their desired price of Rs.50 lacs for the apartment.
However in your case since it is exorbitant, you can demand the details and take him to legal forum for excess demand
As you have stated that builder can sell only on the basis of carpet area, but in the sale agreement only super area is specified as the sale able area. Also a clause that states that the area may change at the time of possession where do my appeal in the court stands? Can I demand full refund of my paid money with interest due to the unethical practices by the builder? Do I need a lawyer to contest on my behalf in the consumer court?
RERA, from May 1, 2017, will empower buyers in most states with a standardized carpet area value comparable with various other offerings from different developers in the same locality.
The difference between the usable and saleable areas is a result of the space included in the calculation.
Super Built-up area is a builder’s BFF! It is the area calculated by adding the built-up area and common area that includes the corridor, lift lobby, lift, etc. In some cases, builders even include amenities such as a pool, garden and clubhouse in the common area. A Developer/Builder charges you on the basis of the super built-up area which is why it is also known as ‘saleable’ area.
1. The builder can not charge as per Super Built up Area as per the Real Estate (Regulation and Development) Act 2016 (RERA) which came in to effect from May 1, 2017.
2. The builders were to Register their ongoing project with in July, 2017 as per RERA.
3. As per the said Act, you are to pay only the carpet area.
4. You can file a complaint case before your local District Consumer Dispute Redressal Forum against the said builder alleging deficiency in service and unfair business practice praying for an order upon the builder to collect payment only as per the carpet area and refund the excess amount collected so far with interest, damage and cost or claiming refund of the amount with interest, damage and cost.
1. Even if Super Built Up area was mentioned in the agreement executed by and between the builder, he shall have to charge for only the carpet area duly complying with the RERA after its introduction/enactment w.e.f 01.05.2017.
2. You can file the complaint case as advised in my earlier post.
You can file consumer complaint in Consumer court for deficiency of service.
