Mumbai Builder to Pay ₹7.39 Lakh for 41.54 Sq Ft Carpet Area Shortfall

560 Sq Ft Promised, 518.46 Sq Ft Delivered

The Maharashtra State Consumer Disputes Redressal Commission has directed a Mumbai developer to compensate a flat buyer after finding a 41.54 sq ft shortfall in the carpet area of his apartment.

The dispute involved a flat at Shree Balaji Ashirwad in Malad West, developed by Milan Builders & Developers.

Under the registered agreement for sale dated January 11, 2016, the buyer was promised a carpet area of 560 sq ft. Possession was subsequently handed over in November 2016.

After taking possession, the buyer appointed a registered architect to measure the apartment. The architect recorded the actual carpet area at 518.46 sq ft, leaving a deficit of 41.54 sq ft.

₹6.64 Lakh Awarded for Area Shortfall

The buyer valued the deficient area at ₹16,000 per sq ft and sought compensation of ₹6,64,640.

The Commission accepted the architect's measurement after noting that the developer disputed the report but did not submit an independent measurement or counter-survey to establish a different carpet area.

The developer and its proprietor were directed to jointly pay:

1. ₹6,64,640 for the carpet-area shortfall
2. ₹50,000 for mental agony and harassment
3. ₹25,000 towards litigation costs

This takes the fixed compensation to ₹7,39,640. The Commission also awarded 9% simple interest on ₹6,64,640 from the date the complaint was filed until payment.

Builder Directed to Complete Pending Compliance

The dispute extended beyond the apartment's size.

The Commission recorded that the building had only received a Part Occupation Certificate, covering the second to sixteenth upper floors, while deviations existed on the ground and first floors.

It directed the developer to complete pending statutory and building compliances and facilitate formation of the co-operative housing society within four months.

The ruling reinforces the importance of the carpet area specified in a registered sale agreement and the value of independent professional measurement where a buyer suspects a discrepancy.

Sandeep Sadh’s Take:

Carpet area is one of the most important numbers in any property purchase. Buyers should compare the area delivered with the registered agreement, particularly at the time of possession.