Whether unutilised FSI belongs to the Society or Builder?

This is a common complaint of the flat owners that builders insist on keeping unutilised FSI for themselves even after a society has been formed and the land conveyed. Sometimes flat owners do not read the agreement drafted by the builder while buying their flats. These agreements usually have clauses that the builder is entitled to all further FSI and other development rights that may occure on the land.

“when a purchaser is buying a flat; he is not only purchasing the flat but also acquiring an undivided right title and interest in the property.” In one of the judgment, the Maharashtra State Consumer Disputes Redressal Commission has ruled that after the registration of a housing society any balance unutilised residual floor space index (FSI) shall be available to the society and not to the builder. In the said matter when the District Forum directed the builder to enjoy the unutilised and future FSI. The housing Society aggrieved by the judgment went in appeal before the State Commission it was held that as per the MOFA provisions, after registration of the society, the builder cannot claim residual FSI or further FSI in the plot or layout. Any provision in the builders agreement for sale contrary to the statutory provision will not be binding on any flat purchaser or the society.

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