AP RERA Penalizes GCON Urban with Rs 42,000 Fine for Violating Carpet Area Standards

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By Real Estate Law Journal

The Andhra Pradesh Real Estate Regulatory Authority (AP RERA) has taken stern action against Visakhapatnam-based builder GCON Urban, slapping a penalty of Rs 42,000 for infringing carpet area regulations. The penalty stems from a complaint lodged by Chetti Lakshmi Bhai, the mother of a flat purchaser, highlighting discrepancies in the carpet area of the property.

The complainant, Chetti Satya Venkata Jagan Kumar Raja, had acquired a residential duplex flat in GCON Urban’s Bay Ridge project in Vizag in October 2018. The registered sale deed indicated an overall area of approximately 2,884 square feet, with a carpet area of 1,997 square feet. However, a statement issued by the Greater Visakhapatnam Municipal Corporation (GVMC) revealed a conflicting carpet area of 1,825.5 square feet, creating a significant disparity of 172 square feet.

Responding to the complaint, AP RERA directed GCON Urban to refund the amount charged for the excess area and execute the necessary deeds in favor of the complainant. Additionally, the regulatory authority imposed a penalty of Rs 42,000 on GCON Urban for the violation of the RERA Act.

In parallel, the Three-Town sub-inspector, S. Santosh Kumar, confirmed the registration of a cheating case against GCON Urban under Sections 420 and 506 r/w 34 of the Indian Penal Code (IPC). Investigations are ongoing, with the police awaiting pertinent documents from GVMC to advance the proceedings further.

This incident underscores the commitment of regulatory bodies to uphold the integrity of real estate transactions and safeguard the interests of property buyers. As the legal actions unfold, it signals a significant stance against deviations from stipulated norms within the real estate sector.

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