Haryana RERA Holds Builder Liable For Charging Amount Based Super Built-Up Area Instead Of Carpet Area, Orders Refund

In real estate, Carpet area means the usable floor space within the walls of a property, whereas super built-up area includes the carpet area along with common spaces like corridors, lobby, and amenities.

Background Fact

Builder is the promoter of a real estate project called "Signum-93" in Gurugram, which comprises both residential houses and commercial retail shops. The complainant applied for a commercial shop within the builder's project, under specific terms including a basic sale price of Rs. 9400 per square foot and additional EDC/IDC charges of Rs. 604 per square foot.

Upon allocation of the shop, discrepancies emerged regarding the pricing, with the Builder charging Rs. 12,52,100.64, significantly higher than the agreed amount, resulting in substantial financial loss to the complainant. Despite paying a booking amount of Rs. 2,00,000 and a total of Rs. 10,00,283, possession of the unit was delayed beyond the agreed-upon date.

Further issues arose concerning the Final Statement of Account, imposition of additional charges without justification, and imposition of late fees despite timely payments.

During a site visit, discrepancies in the super built-up area and the actual carpet area were discovered, with the actual carpet area being less than specified. Additionally, the customer ledger contained inaccuracies regarding the carpet area, exceeding the 5% allowance stated in the agreement. Despite the complainant's requests for corrections, the Builder issued a notice of cancellation instead of rectifying the errors.

The complainant, having paid the full amount , seeks a refund of Rs. 10,00,283 along with interest, citing breach of agreement and alleged fraudulent practices by the builder.

Contention of the Builder

The builder contended that the complainant applied for a retail shop in the "Signum-93" project and was allotted shop no. PE-12 with a carpet area of 59.245 sq. ft. A builder-buyer agreement was executed, which included a basic sale price of Rs. 11,76,504/- along with additional charges totaling Rs. 75,596.64/-. Possession was to be offered by September 2020, subject to force majeure events, with an extension clause for delays."

The builder contended that various events, such as construction bans and the Covid-19 pandemic, coupled with government-imposed lockdowns and restrictions, hindered the project's progress. Despite these challenges, possession was offered to the complainant on 15.06.2021.

Furthermore, the builder contended that the complainant was fully aware of the unit's cost, having received invoices detailing the area and rate, and proceeded to make payments without raising any objections.

RERA Verdict

HARERA held that the Builder wrongly calculated the total price of the unit based on its super built-up area instead of its carpet area. Despite the actual total price being Rs. 5,86,525, it was stated as Rs. 12,52,100/- in the builder-buyer agreement.

HARERA further held that the offer of possession made by the builder on 15.06.21 was not valid because the builder had increased the carpet area from 59.245 sq. ft. to 69.92 sq. ft. and further increased the super area from 125.160 sq. ft. to 137.05 sq. ft. There had been an increase in the carpet area of the unit by more than 15%, whereas, as per clause 3.7 of the builder-buyer agreement, an increase in carpet area was permissible to the extent of 5% only.

Furthermore, HARERA held that the builder's cancellation of the complainant's allotment via the cancellation letter dated 28.02.2022 is invalid, even after the complainant made no default in payment to the respondent.

HARERA directed the Builder to refund the amount, i.e., Rs. 10,25,372, received by him from the complainant along with interest at the rate of 10.85% per annum as prescribed under Rule 15 of the Haryana Real Estate (Regulation and Development) Rules, 2017.

In conclusion, HARERA granted the complainant a refund with interest and held the builder responsible for wrongly calculating the total price of the unit based on its super built-up area instead of its carpet area.