Friday, October 25, 2013

High Court Takes Cognizance;- SUPER AREA under scrutiny!!

 High Court

 In a builder dominated market where the home buyer has no real choice but to surrender all rights and follow each and every dictate of the Builder, the Bombay High Court has come to the rescue, by taking serious cognizance of a letter wherein the illegalities of builders selling flats on Super Area with a CD of the sting operation, has been converted to a Public Interest Litigation by the Hon'ble Court... Kindly go through the TOI story....kindly also go through for more information on what is SUPER AREA...

HC turns plaint on builders’ tricks into PIL

THANE: Taking serious cognisance of a letter alleging illegal activities by builders here, the Bombay high court has converted it into a public interest litigation. 

Activist Vikrant Karnik had in October 2012 written a detailed five-page letter to the high court Chief Justice based on a TV sting operation about certain builders allegedly flouting law during sale of flats. "I obtained the CD of the sting operation from the TV channel and forwarded it to the HCalong with my letter. I elaborated on the illegal acts of the builders, who sell flats on the basis of the super built-up area and demand upwards of Rs 5 lakh for a parking slot in the compound. All this is leading to corruption in public life and exploitation of the common man," said Karnik. 

The Maharashtra Chamber of Housing Industry strongly contested the charges. MCHI president Paras Gundecha told TOI that the majority of builders accept payment by cheque and do not indulge in cash dealings. "Though 20 years ago, there was a trend of certain developers accepting 40 per cent of flat cost in cash, that has reduced greatly. As the ready reckoner (RR) rates increase by 30 per cent every year, the majority of developers are collecting the flat cost by cheque as per the RR rates," said Gundecha. 

Karnik argued that builders' claims have been proved wrong by the sting operation that ostensibly shows some of them demanding higher cash component and illegally charging for parking facility. 

The activist said that in most cases homebuyers are asked to pay for an area that is over and above the flat's carpet area. "Builders have coined the word super built-up, which means that a flat of the size of, say, 100 sq ft carpet is superficially enlarged by 45% or more and the buyer is made to pay for 145 sq ft. This is not permissible, but builders still do it," Karnik claimed. 

He added that the area and the amount quoted in the purchase agreement signed between the buyer and the builder are often at variance. "The agreement document quotes an unbelievably low price and the buyer is made to pay the additional amount in cash. This is illegal," the activist said, citing the CD as proof of the goings-on in the realty sector. 

His plea seeking intervention by the HC to stop builders' malpractices has been admitted by the HC and the registrar (judicial-II) wrote to Karnik informing him that his letter has been converted into a PIL

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