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In 2001, a developer in Alwarpet obtained a sanction plan for the construction of 77 residential apartments. The developer also proposed to build a software technology park with a built-up area of 200,000 square feet in the common area, along with the tech company, SRA Systems, based in Chennai. However, after failing to receive the necessary permissions, SRA Systems dropped the proposal. The developer went on to construct another building on the location after getting the revised plan approved by the Chennai Metropolitan Development Authority (CMDA).
The Madras High Court recently ordered the developer to rectify the sale deed with the correct undivided share of interest (UDS) within three months, as well as asked the CMDA to hand over the vacant non-Floor Space Index (FSI) building to the resident welfare association. The court noted that the conveyance of an undivided share in the land, along with a non-FSI block to a private company by the developer was highly irregular and against the sanctioned planning permission.
The court explained that the undivided share of interest is calculated by dividing the land area by the total constructed area and multiplying it by the size of the apartments. By increasing the total built-up area to 200,000 square feet, the apartment owners did not receive their actual entitlement of the undivided share in the land.
For a residential project, the entire land area is divided proportionately among the homebuyers, depending on the number of bedrooms. The Floor Area Ratio (FAR) or FSI ratio varies by city, and if the developer exceeds the FAR ratio, the homebuyers will not receive their due UDS. Advocate Abhilash Naik said that the problem arises during the redevelopment of the project and homebuyers will have to pay more for the stamp duty to get it rectified. Homebuyers should ask the developer to provide the calculation of the UDS based on the sanctioned plan.
In Karnataka, several developers have been constructing additional buildings and malls in common areas that legally belong to the flat owners. The Mantri Serenity Home Buyers Forum, a representative body of homebuyers of Mantri Serenity, has complained to the Inspector General of Registration about the irregularities in the homebuyers' UDS in the project land. The IGR has notified all district sub-registrars in Karnataka to validate the registration guidelines and take action accordingly. A case on the matter is also pending at the National Consumer Disputes Redressal Commission.
In conclusion, the Madras High Court's decision to rectify the sale deed with the correct UDS and hand over the non-FSI building to the resident welfare association serves as a reminder that developers should abide by the regulations and standards in city planning. Homebuyers should also take an active role in ensuring they receive their fair share of the land and common areas in a residential project.
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