05 April 2024 Dispute with Muncipal/Local Body >> Property & Real Estate  

A residents' society in Mumbai is embroiled in a legal battle with a developer over alleged violations in the construction of a building. The crux of the dispute revolves around exceeding permissible building limits and compromised access to common areas.

The residents' society, acting as the Plaintiff, accuses the developer (Defendant) of exceeding the sanctioned Floor Space Index (FSI) for Building No. 4 within the complex. The society further alleges that changes made to the original layout plan have resulted in additional floors being built while restricting access to some common areas.

The developer counters these claims, asserting their right to construct based on the approved layout plan and the FSI limit, which they argue incorporates Transferable Development Rights (TDR). TDR allows developers to purchase additional building rights from designated areas and utilize them in their projects.

Residents Challenge Disclosure and Regulations

The residents' society contends that the developer did not fully disclose the project's potential, including TDR utilization, in the initial Agreement for Sale. They further argue that modifications to the layout plan have not only added floors but also impacted access to essential common areas. Additionally, they point to a 2007 government order that, according to their interpretation, restricts the use of TDR for buildings that are already constructed.

Developer Defends Construction Practices

The developer refutes these arguments, maintaining that the development plan, including TDR usage, was transparently communicated during the sale agreement. They assert that the construction adheres to the sanctioned FSI limit as per the layout plan and relevant regulations. In regards to TDR, the developer argues that the rights were acquired before the 2007 government order came into effect and were therefore legitimately incorporated into the project's overall planning.

Unresolved Issues Await Court Decision

The court has issued a temporary order halting construction while the legal battle unfolds. Key issues remain to be decided:

• The court needs to determine the validity of the FSI calculations employed by the developer, particularly regarding the use of TDR.
• The applicability of the 2007 government order on TDR utilization in this specific case requires clarification.
• Finally, the court must assess the impact of the alleged layout changes on access to common areas within the building.

An independent architect's report may play a crucial role in adjudicating the claims about discrepancies between the planned and constructed common areas. The final verdict will hinge on the court's interpretation of the relevant regulations, the validity of the developer's construction practices, and the impact on the residents' access to shared spaces.