Consumer Connect: 'Plotted Development Projects Require RERA Registration,' Says Expert

Consumer Connect: 'Plotted Development Projects Require RERA Registration,' Says Expert

The questions are answered by Adv. Shirish V. Deshpande, Chairman – Mumbai Grahak Panchayat.

FPJ News ServiceUpdated: Monday, February 12, 2024, 10:00 AM IST
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Consumer Connect | FPJ

We had signed a deed of agreement for a commercial plot in Gulbargah, Karnataka on August 8, 2011, wherein after payment of 72 monthly instalments, the plot was to be registered and balance payment paid by us after registration. We paid all our instalments till 2017 (72 months as per agreement). After continuous follow up from our side, till date the developer has not completed registration process. Now we have requested them to refund our payment along with interest, due to failure of their terms of contract. They are stating that they shall try and release the payment by mid February 2024, but are not ready to pay interest towards delay. We are also requesting them to share RERA number for the given plot, but they are not ready to share the same. Is there any way we can trace the RERA number of our plot, in case they don't share it?

Ashraf A Hashmani, Gulbargha

Your major portion of the payment to the developer is pre-RERA. RERA became operational from May 1, 2017. You have not indicated the area of your commercial plot for which you have signed a deed of agreement. If the plot is part of a real estate project that does not exceed 500 square metres, then such a project is not required to be registered under RERA.

In case, the plot forms part of a real estate project that exceeds 500sqm and the entire transaction is not completed as on May 1, 2017, then such a project was required to be registered with RERA as an ongoing project. To find out if your project is registered with Karnataka RERA, you must visit their website. Each state RERA is required to have a website which displays the projects registered with it.

If you give the name of the real estate project or the name of the promoter / developer and the location, you should be able to find the same from Karnataka RERA website. Many developers mislead consumers that they are not required to register their plotted development projects. This is wrong. Definition of 'Real Estate Project' under RERA covers even development of land into plots. And if such project is of area exceeding 500sqm then certainly it is required to be registered.

If you do not find your project on RERA website in spite of the area exceeding 500sqm, you can lodge complaint with Karnataka RERA. Non-registration of real estate projects including projects of development of land into plots is a serious offence. It violates Sec 3 of RERA, which makes such registration mandatory.

As per Sec 59 of RERA, a developer who neglects to register the real estate project as per Sec 3 is liable to be penalised up to 10 % of the project cost.

Our society is going for redevelopment and the builder has quoted the offer of additional area to our members in terms of RERA carpet area. What is RERA carpet area? Is it different from earlier MOFA carpet area?

Ninad Sule, Santa Cruz (West)

Yes. RERA carpet area is different from MOFA carpet area. Sec 2 (k) of RERA defines carpet area: “RERA carpet area means the net usable floor area of an apartment (flat), excluding the area covered by external walls, areas under services shafts, exclusive balcony or verandah and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment (flat).”

This definition further explains that “exclusive balcony or verandah area” means the area of the balcony or verandah which is appurtenant to the net usable floor area of an apartment (flat), meant for the exclusive use of the allotted.

To explain it in layman's language, MOFA carpet area is net usable floor area that excludes area covered by external walls as well as internal walls. RERA carpet area excludes external walls but includes internal wall area. To illustrate it further, if an internal wall that divides a drawing room and a bed room is 10 feet long and 0.5 feet thick ( 10ftx 0.5ft = 5sqft) then this 5sqft or 0.46sqm area is included in the RERA carpet area. MOFA carpet area excludes this internal wall area.

(Advocate Shirish V Deshpande is a chairman of Mumbai Grahak Panchayat.)

Email: shirish50@yahoo.com

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