Taking a serious note of violation of carpet area norms by realty developers in Mumbai, the Maharashtra government plans to introduce a string of stringent checks and balances for the benefit of flat buyers.
According to its plan, the Mumbai civic body would not issue a ‘No Objection Certificate’ until the developer submits the carpet area-based building plan. Also, the revenue department would not register property documents if the building plan is not based on carpet area.
The move comes close on the heels of the Maharashtra government’s recent decisions to redevelop Dharavi slums by state-run Maharashtra Housing & Area Development Authority, and not by a select few developers, and cancel slum redevelopment schemes cleared in the past for lack of transparency.
Usually, carpet to built-up area is about 20-25 per cent plus and super built-up, or saleable, area is another 10-20 per cent. In view of the government’s proposal, all developers would quote area on the carpet area basis taking these calculations into account. There would not be any variation for the consumer or the developer as far as price is concerned. But it is expected to bring in clarity and transparency in the realty sector. At present, the registrar adds 20 per cent on the prescribed carpet area at the time of registration of property documents. However, stamp duty would now be charged on the carpet area basis.
Minister of state for housing Sachin Ahir told Business Standard that: “The government's policy is quite clear that builders and developers will have to sell flats in Mumbai on the basis of the actual constructed area or carpet area. According to the provisions of the Maharashtra Ownership Flats Act, developers have to mention the carpet area of each flat in the building plan, but also have to sell it on the basis of this.”
He said since the deal was signed between the developer and the buyer, it was difficult to know whether the agreement was based on carpet area.
Sunil Mantri, former president of Maharashtra Chamber of Housing Industry, welcomed the proposed move. “This will help in bringing more transparency and consumers will have complete clarity about the area what he is buying. We also welcome the move for charging the stamp duty on the carpet area basis.”