Industry body appeals to builders to sell flats only on the basis of carpet area; many fall in line
With more than 2 lakh unsold flats in the city and a lull in business, developers are finally realising that it is far more profitable to adhere to the law than break it.
The Maharashtra Chamber of Housing Industry (MCHI), Navi Mumbai, had appealed to developers, in a recent meeting, to sell flats only on the basis of carpet area.
"In the meeting, six developers promised to do so and more will follow suit in the coming days," said Manohar Shroff, general secretary, MCHI, Navi Mumbai.
Though the Maharashtra Ownership Flat Act, 1963, makes it mandatory on the part of developers to sell flats and make registrations only on the basis of the carpet area, this rule is more often observed in its breach.
Sunil Mantri, president of National Real Estate Development Council (Naredco) – the umbrella body of developers at the national level – welcomed the move.
"It will help us to be transparent. Otherwise, we may have to face trouble if someone goes to the court or any government authority. Builders have now started writing the carpet area on brochures as well," Mantri said.
Pankaj Kapoor, MD, Liasas Foras, real-estate research firm, also welcomed the move. "Developers no more disguise customers. Customers are more alert now and ask many questions before finalising deals. This trend will bring parity and transparency into the real-estate sector," Kapoor told dna.
"We have to earn customer trust. Our community has been disrespected because of a few black sheeps. However, we have decided to clean the muck and bring good name to our industry. Selling apartments on the basis of carpet area is one good beginning," said Shroff.
However, it's not going to be a smooth affair. "The Supreme court had categorically said that parking lots are part of apartments and should not be sold separately. Developers can sell parking lots separately only if they sell a huge chunk," said some real-estate developers.
But it's an open secret that many developers still sell parking lots separately.
Breaking the builder-politician nexus is also not that easy, say some experts.
"Once the housing regulatory bill is passed, more regulations will come in. Currently, most errant developers are going scot-free as the norms are not strictly implemented. The bill has been approved and even the President has given his assent two years ago. Still, chief minister Devendra Fadnavis is sitting on preparing the guidelines," said an expert.
What is carpet area?
Carpet area is the wall-to-wall area, or the livable area, that can be covered with a carpet. However, builders have been taking customers for a ride by charging for built-up and super-built areas that include ornamental areas like flower beds, balconies, lift area and corridors that are not livable areas. But on registration documents, only the carpet area will be mentioned.
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