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CARPET AREA IN MUMBAI : Blunder or Biggest Scam..???


Dear Chief Minister, Maharashtra

Dear Municipal Commissioner, Mumbai

Dear MAHARERA Chief, Maharashtra

Sub: CARPET AREA IN MUMBAI : Blunder or Biggest Scam..???

Carpet area is still mystery for every Mumbaikar.

As per layman, if carpet is spread in their flat, that is total carpet area but as per RERA, carpet area is the area of carpet spread plus the internal walls. That means it is approx 4% more than actual carpet area.

On the other hand, since British rule BMC approves plans on built up area. Built Up Area (BUA) or FSI as per BMC includes carpet area plus internal walls and external walls also, which becomes approx 14% (12% to 16%) more than the base carpet area.

More important when the documents go for adjudication of stamp duty, they charge on Built up area and their BUA calculation is again different of carpet area multiplied by 1.2 times.

This means BMC sells area on built up area to the developer but promoter/developer has to sell on RERA Carpet area which is approx 10% less and eventually developer sells to buyer on RERA carpet area which is 4% more than actual carpet area and lastly buyer has to pay stamp duty on carpet area plus 20% loading.

Following are area calculations for 100 sq.ft carpet area by different departments:

100 sq.ft : Actual Carpet Area

104 sq.ft : RERA Carpet Area Charged by


114 sq.ft : BMC approves plans and charges

Premiums on BUA

120 sq.ft : Stamp Duty Charged area.

If Govt has brought up RERA AS regulatory body in real estate and as per them RERA area is finalised as carpet area, then why all other Govt departments doesn’t follows the same...?

BMC charges premium on BUA, that means they are also selling the area, then why two different parameters for promoter/developer and BMC..?

Why BMC & Stamp Duty Department charges on different parameters as per their wish...?

On one hand

1. BMC is charging exorbitant premiums ( have reduced pea nuts recently),

3. Central Govt charges various taxes and

4. State Govt charges Stamp Duty

And on other hand they also charge premiums and stamp duty on more area than RERA Carpet area.

Is this not the biggest blunder or is it an official scam to loot the public since ages..?

Hence it’s appeal to Government to change as follows:

- BMC to approve FSI as per Rera Carpet area and not BUA.

- BMC to charge premiums on RERA Carpet area

- Stamp Duty also to be charged on RERA Carpet area only.

We are not staying in British Rule and some Govt has to take such bold step. If carpet area definitions can be changed for common man, then Government has also to adopt that rule for their own and not necessarily follow what was in British Rule.

Nayan Dedhia

Managing Director

Toughcons Nirman Pvt Ltd.


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