GujRERA’s  judgment over change of plans without unit holders consent & miscalculations of FSI

GujRERA’s  judgment over change of plans without unit holders consent & miscalculations of FSI
Feb 2021 , by , in Press Room

The Project was initiated in 2012 with 90 plots, where construction was supposed to happen on 88 plots, while 2 Plots were reserved as “owners plot”. After the RERA came into effect in 2017, the project developer revised the plan for “owners plot” as well as some other unsold plots to construct apartments and increase the number of duplexes in the same land area. The residents of the new projects were given access to the common area and amenities of the existing Project.

All these changes were done after the common area was handed over to the Unit holders of the existing project in 2016, and no consent was taken from any of the existing Unit holders. The new constructions were shown as 2 different projects, also, separate from the existing project, to RERA department, while common amenities were kept same.

The case was placed before the Hon’ble RERA Authority, Gandhinagar, by the Unit holders of existing project and was represented by CS Lokesh Shah, Co-founder of GujReraExperts. It was argued that the revised plan had brought loss and discomfort for the existing unit holders as their common amenities were being shared by a considerably higher number of new unit holders. And since, the RERA act was implemented, the change of plan should have been done only after the consent of atleast 2/3rd of the existing project unit holders.

After hearing the complaint, the Authority restrained promoter from sharing the common area and amenities of the existing project with the new project, as the revision was done without obtaining consent of the members of existing project, thus violating the provision of Section 14 (2) of the RERA Act, 2016.

Further, the Gujarat RERA Authority also directed the Urban Development Authority to check the approved plans of the new project for probable miscalculations of FSI and given stay order on further booking and selling of any units in the project over the disputed plans till the issue is decided by the Urban Development Authority.

“Once an association of allottees is formed and common area maintenance and management is being handed over to it, the promoter or land owners ceases to have any right over common area, amenities and Future FSI available on the land. All such rights shall vest with the said association of allottees only. Further, the promoter cannot revise approved plans without obtaining consent of at least 2/3rd members of the project under Section 14 (2) of the RERA Act, 2016.” Said CS Lokesh Shah, a Company Secretary who appeared before the RERA Authority on behalf of the complainants.

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