Realty body gets tough on builders

MUMBAI: With a view to curb unethical practices, the Maharashtra Chamber of Housing Industry (MCHI), the apex body of real estate business in the state, has directed all its members not to book flats without receiving the commencement certificate (CC) from the authorities.MCHI secretary Sunil Mantri told TOI: "Apart from givingthis instruction to our members, we have also decided to let builders havestalls in our exhibitions only if they have the CC of their projects." He notedthat this is a statutory requirement under the Maharashtra Ownership Flats Act(MOFA) and that it will be implemented strictly.MCHI treasurer AshokMohanani said, "This step will benefit flat buyers in a big way. People takehousing loans of lakhs of rupees and hence it is necessary to protect theirinterests. This move will ensure that people buy flats only in approvedprojects."The MCHI has also asked its members to sell flats as pertheir carpet area and not on the built-up and super built-up basis, Mantri said.Following a public outcry against the sale of as high as 40% of built-up area,the state government had warned builders of action if they do not sell flats onthe basis of their carpet area. Housing law expert D S Wader said, "There is aspecific provision under the MOFA that the sale agreement should specify onlythe carpet area. But most builders do not follow that rule. It is good if theMCHI has decided to implement it." In fact, some of the builders have alreadystarted selling their flats on the carpet area basis. Builder AtulShirodkar, who has several projects in Mumbai and Nagpur said: "I have made itclear in my brochures and advertisements that the flats will be sold strictly oncarpet basis. In fact, I am asking the buyers to themselves measure the area oftheir flats before making the final payment." He added that several builders hadcalled him up and "accused him of spoiling the real estate market"."But I havedecided to strictly follow the law, Shirodkar said. Housing activists havesuggested that cheating cases be registered against builders who don't sellflats on carpet basis.Mantri said the MCHI has also asked itsmembers to specify in writing the costs involving stamp duty, registrationcharges and any additional facilities. "This will ensure that there are nohidden costs. We want to introduce greater transparency in all flat dealings,"he said.