Mira Road Builder Must Refund Buyer Rs 2.8 Lakh For Carpet Area Shortfall
A property buyer in Mira Road, Maharashtra, is entitled to a refund of Rs 2,80,000 after her developer refused to compensate her for a 10-square-foot shortfall in her flat's carpet area. The developer claimed that the Maharashtra Real Estate Regulatory Authority (MahaRERA) permits a three percent variation without any refund, but official regulations confirm that builders must reimburse buyers for any reduction in promised carpet area.
The buyer, Jacquline Miranda, recently took possession of her flat in Mira Road. According to her agreement, the flat was supposed to have a carpet area of 500 square feet. Miranda purchased the property at a rate of Rs 28,000 per square foot, paying a total of Rs 1.40 crore, in addition to stamp duty and registration charges.
However, an architect measured the flat and found that the actual carpet area was 490 square feet, representing a 10-square-foot shortfall. When Miranda requested a refund of Rs 2,80,000 for the missing space, the developer refused. The builder argued that MahaRERA permits a plus or minus three percent variation and that a refund is only payable if the shortfall exceeds three percent.
Under Clause 1(g) of MahaRERA’s Model Agreement for Sale, the developer's interpretation is incorrect. The clause mandates that the promoter must confirm the final carpet area after construction is complete and the occupancy certificate is granted. If there is any reduction in the carpet area within the three percent variation cap, the promoter must refund the excess money.
This refund must be paid to the buyer within 45 days. It must also include annual interest at the MahaRERA-prescribed rate, which is the marginal cost of funds-based lending rate (MCLR) plus two percent per annum, calculated from the date the excess amount was paid.
Because Miranda's flat had a two percent negative variation, the developer is legally required to reimburse the Rs 2,80,000. Accepting a developer's refusal to refund such shortfalls would allow builders to misuse the variation clause to make gains at the buyer's expense.
If the developer continues to refuse the refund, Miranda has the option to file a complaint before MahaRERA to seek the amount with interest. She can also approach the Maharashtra State Consumer Disputes Redressal Commission under the Consumer Protection Act, alleging deficiency in service and unfair trade practice.
