Beware..!! Builders are stealing your FSI

May 28, 2021

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Benefits of FSI

The policies of Governments keep changing. To boost economic activity, to expand the job market and to provide the infrastructure for development, the Governments periodically give hikes on currently allocated FSI. When the jurisdiction of Municipal Corporation increases and surrounding areas come under the purview of municipal corporation then the FSI on the property increases.

You might like this article: How to file a complaint against a builder under MOFA?

What is FSI?

Floor Space Index, also known as floor area ratio (FAR), is the maximum area that can be constructed on a plot of land. It is regulated by the municipal or local authorities of the respective State government. For instance, if you have 1,000 square feet of land on which you want to build a residential or commercial building and the FSI in your locality is 1.5, then you could build up to 1,500 sq.ft of covered structures on the plot.

Additional FSI

When the FSI increases due to government policies, then the additional construction can be made on the current property. FSI can be converted to TDR and can be sold by the builders. But an important thing to note is that the flatholders have the ownership rights on the additional FSI. Once the flat holders purchased the land, formed a society and the conveyance deed is registered, the builder cannot take any unlawful advantage of the additional FSI.

This might help you: Which documents should the builder handover to society?

MOFA

As per Section 7 of MOFA, the builder has to take consent from the flat holders before revising the sanctioned plan. But the flat holders are unaware of the concept of FSI and their rights on the additional FSI. Therefore, the builders get the undue advantage and they tend to steal the FSI.

Many times, builders put additional clauses in the flat purchases agreement regarding the use of FSI. Those clauses can be used by the builders to steal away your FSI. Therefore, it is essential that the flat holders shall be aware of their rights. The High Court has termed those clauses to be ‘Blanket Consent’ and held them ‘illegal and unethical’.

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Actions can be taken

You should have knowledge regarding your flat. You can approach experts in that field to understand the legal aspects involved in your property. You should form a cooperative housing society, register a conveyance deed of the property affecting the transfer of ownership. After conveyance, the name of your society shall be incorporated on the revenue records. Property card or 7/12 extract. You shall also submit a letter to the local authority to restrain the builder from revising the sanctioned plan without the consent of the flat holders. If the builder has already obtained permission to revise the plan then you can approach civil court to stay any operation and restrain the builder from making additional construction. Even criminal proceedings can also be initiated against the builder.

Important for you : While incorporating name on 7/12 extract

You put your hard earned money to buy a flat but due to lack of awareness, you might suffer loss. As FSI is an abstract concept and the loss caused due to stealing of FSI cannot be seen physically but on the calculation of this loss, it can be in lakhs. So, you have to be aware of the legal complexities involved and shall take all the necessary measures to protect your property and money invested.