Builders trick turns into PIL by High Court

By Accommodation Times News Service

High Court has converted the builder’s illegal activities into a Public Interest Litigation (PIL) taking seriously cognizance of a letter alleging.  Activist Vikrant Karnik 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. Karnik said, I obtained the CD of the sting operation from the TV channel and forwarded it into the HC along with my letter. I elaborated on the illegal acts of the builders who sell flats for a parking slot in the compound. All this is leading to corruption in public life and exploitation of the common man.

The Maharashtra Chamber of Housing Industry strongly debated the charges. MCHI president Paras Gundecha said, that the majority of builders accept payment by cheque and don not indulge in cash dealings. Though 20 years ago there was a trend of certain developers accepting 40 % of flat cost in cash that has reduced greatly. As the ready reckoner rates increased by 30% every year, the majority of developers are collecting the flat cost by cheque as per the RR rates.  The activists said that builder’s 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. Adding further he said in most cases home buyers 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.  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. The victim has said illegal citing that the CD is proof.

The plea is seeking intervention by the High Court to stop builders malpractices have been admitted by the HC and the registrar has informed Karnik that the letter has been converted into PIL.

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