Pc East Mojo


Rongili Barta-  The Assam Real Estate Appellate Tribunal has conveyed its strong displeasure over the conduct of a builder who demanded payment from the buyers for non-existent additional built-up area of the villa, purchased by them. The Tribunal made strong observations while deciding the appeal filed by the builder in the case of M/s Arya Erectors India Pvt. Ltd vs. Sri Padum Deori and another. In this case, the buyers had executed a Deed of Agreement with the builder for the purchase of a Villa in the “Arya Smart Living”. Abhaypur, North Guwahati for a total built up area of 1877 square feet. According to the Agreement, the villa was to be completed and handed over to the buyers within 36 months, meaning by 09.02.2019. After the buyers had made 90% of payment, the builder demanded additional payment for an increase of 473 square feet in the built-up area of the villa. However, a joint physical measurement, conducted by technical persons in the presence of the builder, revealed that the actual built-up area of the villa was 1756 square feet. In other words, the built-up area was 121 square feet less than the area mentioned in the Deed of Agreement whereas the builder was claiming that it was 473 square feet more. Neither the builder nor the buyers disputed the measurement taken during the joint inspection.
Dismissing the appeal, the Tribunal directed that the payment for the villa be made only for the actual built-up area of 1756 square feet. The builder will have to pay to the buyers interest at the rate of State Bank of India’s Marginal Cost of Lending plus 2% on the amount already paid by the buyers from 10.02.2019 until the date of handing over possession. The builder was directed to complete the exercise of execution of the Conveyance Deed and the handing over of possession of the Villa to them within 6 weeks.

Expressing strong displeasure over the conduct of the Builder, the Tribunal observed that the Real Estate (Regulation and Development) Act, 2016 was enacted with the object to ensure regulation and promotion of the real estate sector in an efficient and transparent manner as well as to protect the interests of consumers in the real estate sector. It was also observed that the present case illustrates, in a way, why the need for regulating the real estate sector, which led to enactment of the Act in the year 2016,had been emphasised.

The Order was passed by Mr. Justice (Retd.) Manojit Bhuyan, Chairperson of the Assam REAT and Shri Onkar Kedia, Member, Assam REAT.