Buyers face 40% flat area cut in Khar bldg

More than a dozen people who booked apartments in a controversial tower on 16th Road, Khar (West), are in a bind after large-scale building violations were detected by the Slum Rehabilitation Authority (SRA). They could lose up to 40% of their apartment areas. Also, possession of the flats will remain uncertain for a long time, though many buyers have made a substantial chunk of the payments.      On Tuesday, August 6, TOI did a searing exposé on how the developer, K Mordani Realty, used a little-known provision of the development control regulations (DCRs) to secure more floor space index (FSI) from the slum authority.     Buyers of flats in the tower, which is near Khar Gymkhana, are unsure of their course of action. "We will meet and decide what to do now. The builder has told us we have nothing to worry about because he complied with SRA policy," said Jagdish Rohera, a buyer. But another buyer said there was not much the buyers could do.      What are the legal remedies before the buyers? Advocate Parimal Shroff said they could write to the SRA, furnishing them with all correspondence with the developer. "They should be allowed to participate in the SRA hearing, along with the builder. They can even drag the developer to the consumer court and the competition commission."      The builder sold every flat with a super built-up area of over 3,000 sq ft, keeping the carpet area at barely 800 sq ft. The market rate of each flat is around Rs 10 crore, at Rs 60,000 a sq ft.      The tower was cleared for only 12 floors by the BMC. But halfway into construction, the developer approached the SRA with a fresh plan and succeeded in getting the height increased to 20 storeys. An SRA inspection team found certain areas of the building illegally amalgamated into the flats. SRA CEO Nirmalkumar Deshmukh has directed the developer to rectify the illegalities within six months and threatened to withhold the tower's occupation certificate.      Building violations include merging the lift lobby area into adjacent rooms, illegally covering elevation features, making toilets and prayer rooms out of ducts and amalgamating the fitness centre and the meter room. The illegal features are shown in the tower's sale drawing.      "In every such case of violation, it is flat buyers who stand to lose the most," said a property consultant.      Recently, residents of Worli's Campa Cola society fought a losing battle to save their apartments from demolition. More than two decades ago, the builder violatedFSI and constructed way beyond what was legally permissible.      Another case pertains to people who bought spacious flats, each worth over Rs 10 crore, in a luxury building in JVPD. They are caught in a bind after the BMC found large-scale violations by the builder. The case is in the Supreme Court; the BMC is still to give the building an occupation certificate.  FLAT PURCHASE CHECKLIST 1 Check if property is freehold (ownershiprights are available for life) or leasehold (ownership rights remain with party leasing out property)      In leasehold, a) monthly outgoings are high; b) lease is for fixed period; c) lessee has to pay a premium and contribute to annual rent; d) every flat sale requires an NOC from the leaser (like in BKC); and e) leases have to be renewed at a premium 2 Do a background check on developer      Find out if developer is a sole proprietorship, a private limited company, a private firm or a private partnership firm      Know the developer's past performance, past projects, credibility and so on 3 If developer is operating with a power-of-attorney (POA), make sure the POA is registered. Find out if a developer with a POA has full power to execute an agreement for sale of a flat 4 Check if title of the property is clear and marketable. Ensure that a solicitor has issued the title certificate 5 When finalizing a deal, see if you are executing an agreement for sale or the developer is just handing you a letter of allotment. A letter of allotment leaves the buyer at risk till the agreement for sale has been executed and registered 6 Make sure the developer has not taken a loan against the land and then issued a letter of allotment. This amounts to a dubious double sale till the agreement for sale is registered 7 Check in the title if the land ismortgaged with any financial institution      If it is mortgaged, an NOC is required from the financial institution before an agreement for sale is registered 8 The approved plan with commencementcertificate has to be issued by the authorities concerned      If these documents are not in place, it means you are booking a flat even before the project is officially launched      There are cases where the developer's plans don't get approval, but he has already collected a substantial amount as advance from buyers. If the plan is not approved, the developer can issue only a letter of allotment and not an agreement for sale 9 Confirm the carpet area of flat being purchased Check cost of carpet area, floor rise, car parking, etc 10 Take into account the additional burden inpricing. Stamp duty, VAT and service tax add almost 10% to the cost 11 Avoid buying on top two floors. In case of an FSI or other violation, which leads to the authorities calling for demolition, the top floors are the first to go LEGAL REMEDIES FOR BUYERS      Write to the slum authority, furnishing them with all correspondence with the builder      File a case against the developer in the consumer court and the competition commission CAMPA COLA BUILDING CASE      The Supreme Court ruled on February 27 that all floors above the fifth in seven buildings in Worli's Campa Cola compound will have to be razed      The residents filed a review petition on April 1      The BMC issued a 48-hour eviction notice on April 26      The top court granted a stay on demolition, giving flat owners five months to vacate      The BMC is set to start demolition from October 2. The estimated cost of Rs 1.9 crore is to be recovered from residents