Who invented super built up ?

[RajaRC]

Who invented super built up ?

http://www.accommodationtimes.com/real-estate-news/current-affairs/who-invented-super-built-up-2/

By Sanjay Chaturvedi

All over India, super built-up concept has taken its place in real
estate transactions. It is applicable to residential units, commercial
premises and now to the open vacant land.
Although, there is no place of such concept in any law for the time
being inforce, the transactions cannot take place without it.
Question is, who invented and why ? When builders started selling
concepts instead of flats in early 80s, they were asked to sell it on
carpet and no due charges were given for the extra amenities they had
provided.
The balcony was charged extra premium by the BMC and builder mounted
balcony area on carpet area of the flat. And slowly he started adding
areas of passage, common staircase, lift wells, compounds, terrace,
gardens etc on the carpet area to maximise his profits.
The permissible built up ratio was 18% that time and is still
applicable. But the trend changed over the years. Builders started
mounting 23% in early 90s then 30% in late 90s and nowadays majority
of the builder sells nothing less then 33% to 45% on residential
units, 50% to 200% on commercial premises. Government agencies like
MHADA, SPPL, DDA and CIDCO are also following the trend.
Landlords are also now very well informed on such practice and hence
sell the open land to developers by adding 33% of saleable area.
This is not the practice in Mumbai alone. Ahmedabad, Delhi, Rajkot,
Bangalore, Pune, Nashik, Kolkatta, Chennai and elsewhere in India are
following the trend.
When Mr. Deepak Parikh, chairman, HDFC, boldly said in CREDAI meeting
at Bangalore that the sale must be on carpet area, no developer came
forward to announce his intention to sell at carpet area except Mantri
Group. CREDAI has itself imposed code of conduct which clearly says
that the carpet area must be mentioned in sale agreement. The
Confederation of Real Estate Developers Association of India failed to
impose such code.
In Model Agreement under Maharashtra Apartment Ownership Act, it is
mandatory to mention carpet area in sq.mtrs. And the model agreement
is mandatory to be followed for entering into an agreement. But
sellers never follows the model Agreement, instead drafts one sided
agreement to protect them and attack the purchaser without any fault.
A thought was coined by MCHI office bearer, in a talk show on some
channel recently, that we give extra amenities, extra open space,
extra lifts and other amenities, we are charging for that. And super
built-up area is just a method for calculating the rates. Either you
pay Rs. 2600/- as super built up or Rs. 3800/- on carpet, my flat will
cost Rs. 18,00,000/- for 2 BHK.
Open spaces are mandatory to be left alone in the Development Rules of
BMC. The builder has to keep such open space. By just decorating and
using it as USP for the project, it doesn’t give him any reason to
mount on the carpet.
It is already written in DC Rules and proven that lift wells and
staircase do not count in the total constructed FSI, hence charging
such area on carpet is not justified.
Compounds also cannot be charged on carpet, because anything open to
sky is not saleable. Non saleable areas cannot be sold by proxy. It
cannot be counted in area of occupation. Also, open car parkings are
been sold, hence builder should not charge the open compounds twice,
once sold as car parking and secondly mounting such areas on carpet.
Even open car parking cannot be sold.
Lastly, the customer who register their documents on super built-up
area pays higher property tax, society charges for life time. He pays
the taxes for lifetime on the area which he is not occupying and only
mentioned on paper. Higher stamp duty and Registration charges on
super built-up area is also not justified.
It was indeed a great concept two decades ago, but now when
transparencies are discussed, the seller must be Caveat Emptor. Let
the buyer be beware of everything which he is paying for. Founder
Convenor Mr. K.V. Satyamurthy, FAAI rightly raised the voice as “Maap
Mein Paap Nahin”. An upcoming rating agency sent a SMS to this author,
said “Earth will swell 45%, if developed by a Mumbai developer”