The West Bengal Real Estate Appellate Tribunal has directed PS Group Realty to refund payments with interest for a shortfall in the carpet area of a commercial office unit in New Town, Kolkata, reinforcing the primacy of statutory real estate regulations over private contractual clauses. The ruling emphasises regulatory oversight in urban commercial property markets, setting a precedent for accountability in developer commitments.
The dispute arose when a corporate allottee challenged the stated carpet area of its office unit in the “ABACUS” project, claiming the usable floor space fell short of contractual specifications despite full payment. The West Bengal Real Estate Regulatory Authority (WBRERA) had earlier commissioned the New Town Kolkata Development Authority (NKDA) to measure the unit physically, revealing a net area of 380 square feet against the 390 square feet mentioned in the sale agreement. Industry analysts note that such discrepancies, even when minor, can influence commercial real estate valuation, rental potential, and long-term asset utility. The Appellate Tribunal’s dismissal of the builder’s appeal underscores that statutory definitions of carpet area excluding structural walls, plaster, and finishes are binding. Contractual tolerance clauses inconsistent with the mandatory RERA framework were ruled invalid, signalling tighter compliance expectations for developers across the region. The tribunal also addressed claims relating to delayed possession. While the allottee sought interest for late handover, the court confirmed that possession had been validly served post-occupancy certification. Since the agreement did not allow withholding possession over a carpet area dispute, the claim for additional interest was rejected. Legal experts suggest this delineation clarifies responsibilities for both developers and buyers, preventing misuse of technical discrepancies to stall property transfer while maintaining consumer protection.
Urban planners and market observers view the ruling as significant for commercial real estate transparency. With New Town expanding rapidly as a business hub, accurate measurement and disclosure of office and retail spaces are critical for ensuring equitable investment returns and mitigating litigation risks. The decision reinforces the role of regulatory authorities in safeguarding end-user interests, promoting fair practices, and stabilising urban real estate markets. The outcome also has implications for governance of mixed-use and large-scale projects, where minor deviations in carpet area can cumulatively affect city infrastructure planning, occupancy load calculations, and municipal revenue forecasts. As commercial real estate absorbs significant private and institutional capital, ensuring compliance with defined statutory norms helps maintain confidence in urban property markets and supports responsible development.
The Appellate Tribunal directed immediate release of the refund along with accrued interest, signalling that statutory enforcement mechanisms can provide timely redressal. Market stakeholders highlight that continued vigilance and transparent reporting standards are necessary to prevent future disputes, particularly in high-density urban zones experiencing rapid commercial and mixed-use growth.
Also Read: Raipur Real Estate Impacted by Large Scale Seizure
PS Group Builders Directed to Compensate Carpet Deficit
