MCHI seeks state government’s intervention to resolve problems in the sale of flats

Mumbai, November 23, 2010: Maharashtra Chamber of Housing Industry (MCHI), the most prominent body of real estate developers today sought Maharashtra Government’s intervention in removing the anomaly in Development Control Regulations in order to follow carpet area norms in the sale of flats.
In a letter addressed to the Maharashtra Government, MCHI President Mr. Sunil Mantri lauded the Government’s initiative in carrying out necessary modifications in DC rules to follow carpet area norms in selling realty but pointed out the difficulty in implementing the Government’s regulation due to various constraints and sought the Chief Minister’s intervention on the issue.
Listing out various difficulties, the MCHI President said presently, the Brihanmumbai Municipal Corporation sanctions the Building Permission Plan based on Built Up Area (BUP) wherein area covering staircase, passage, lift well, lobby, plinth and common areas are also taken into account for FSI purpose. The MCHI had requested the Urban Development Department that all sanctions of the Building Permission Plan be based on Carpet Area basis. However, UD department has not been able to arrive at a decision pertaining to this crucial issue.
“We are willing to adopt sale of Flats on Carpet Area basis which will enable us to implement the government’s stated intention. However, it is very essential with a view to bring uniform practice for sale of Flats on Carpet Area basis, by all the developers”, Mr. Mantri said adding that “For this purpose only minor modification in D C regulations is needed”.
Referring to the Stamp Duty charges, the MCHI president stated, while the government is insisting on the developers to follow carpet area, the Stamp Duty too is being charged by the revenue department on BUA, which needs to be corrected by initiating charges of stamp duty on carpet area basis.
“One authority permitting projects on BUA, and the other asking developers to sell flats on carpet area basis, is unjustified. Hence, we urge your good self to use your good offices to intervene in the matter and accord your approval for sanction of the Building Permission Plan and Stamp Duty on Carpet Area basis. This approval shall enable MCHI to direct all the developers under its umbrella to sell flats on Carpet Area basis”. Mr. Mantri said.
Historically, constructed property has been measured or traded in terms of the carpet area available to the buyer. Earlier, that is up to the mid 70s, property was being traded in Mumbai purely on the basis of carpet area, taken as being equal to the size of the carpet spread required when every inch of the floor inside the house was to be covered.
The concept of Built up / super built up area basically started as a result of the justification for the cost being incurred on the various add-ons by the developers such as podium, garden, and amenities like swimming pool and club house, which were not taken into the calculation till early 70s.

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