Bottom Line Up Front
Builders in India often sell flats in buildings with more constructed floors than officially approved. When additional floors aren’t approved, buyers face demolition orders, loan cancellations, and registration failures. File an RTI (Right to Information) for ₹399 to verify your building’s approved floor count before investing. This simple step can save you from crore-level losses.
Approved vs Constructed Floors: The Biggest Risk in Indian Real Estate
The Hidden Crisis in Indian Real Estate
One of the most dangerous and widespread practices in Indian real estate is the gap between approved floors and constructed/sold floors. It’s a problem that affects thousands of homebuyers every year, yet it remains largely invisible until it’s too late.
Here’s how it typically unfolds: A builder receives approval for, say, 11 floors from MHADA (Maharashtra Housing and Area Development Authority) or the local municipal corporation. But instead of stopping there, they market the project as a 23-floor tower. They sell flats on all 23 floors, collecting crores in the process. The gamble? That they’ll secure approval for the additional floors before anyone notices.
But what if the approval never comes?
The consequences are catastrophic for buyers:
- Demolition Orders: Authorities issue orders to demolish illegally constructed floors.
- No Occupation Certificate (OC): You cannot legally occupy the flat.
- Bank Loans Recalled: Banks discover the truth and demand repayment.
- Registration Impossible: The Sub-Registrar refuses to register your property.
- Resale Nightmare: Future buyers refuse to touch the property.
This isn’t a rare edge case. It’s a systemic issue in cities like Mumbai, Bangalore, and Pune where builders regularly exceed approved floor counts.
How Does This Happen?
Understanding the mechanics helps you protect yourself.
The Approval Process
Building approval isn’t a single-step process. It happens in stages:
- Initial Approval: The builder gets approval for a specific number of floors based on Floor Space Index (FSI) and other zoning regulations.
- Revised Plans: If the builder wants to increase the number of floors, they must submit revised plans.
- Additional FSI Purchase: In cities like Mumbai, buying additional FSI (fungible FSI) or TDR (Transfer of Development Rights) is required to legally increase floor counts.
- Authority Approval: The revised plan must be approved before construction can begin on additional floors.
Where It Goes Wrong
Many builders take a calculated risk: they sell flats on unapproved floors while assuming revised approval will come through. Sometimes it does. Often, it doesn’t. Reasons for rejection include:
- Regulatory changes during the construction period
- Changes in FSI limits or zoning policies
- Insufficient FSI purchase or TDR acquisition
- Authority rejection of revised plans
- Changing administrations with stricter enforcement
By the time a buyer discovers this, thousands of rupees have already changed hands.
The Real Impact on Buyers
This isn’t theoretical. These consequences are happening right now:
No Occupation Certificate
Without an OC, you cannot legally live in the flat. Some authorities allow provisional occupation, but this is temporary and uncertain. Banks typically don’t accept provisional OCs either.
Home Loan Issues
Banks conduct thorough due diligence. When they discover that your flat is on a non-approved floor, they either:
- Reject your loan application entirely
- Cancel the loan after disbursement
- Demand immediate repayment with interest
Registration Blocked
The Sub-Registrar will refuse to register the property. Without registration, you don’t have legal proof of ownership. You can’t sell, mortgage, or lease the property.
Demolition Risk
In extreme cases, authorities issue demolition orders for illegally constructed portions. This puts your entire investment at risk.
Resale Nightmare
Future buyers will investigate the building’s compliance history. Once the issue is public knowledge, resale becomes nearly impossible or happens at deep discounts.
How RTI Reveals the Truth
The Right to Information (RTI) Act is your shield. You can file an RTI request with the municipal corporation or MHADA asking for:
- How many floors have been officially sanctioned?
- What is the current Completion Certificate (CC) status? For which floors?
- Have revised plans been submitted for additional floors?
- Are there any violation notices or show-cause orders?
The authority must respond within 30 days. The cost? Just ₹399 (plus potential postage). The insights? Priceless.
An RTI response gives you official, written confirmation of the building’s approval status. This is far more reliable than any word from the builder or real estate agent.
Don’t just ask the builder. File an RTI independently. Builders may provide misleading information, intentionally or otherwise. Official records don’t lie.
A Real Example: Soham Heights, Kandivali West
The Case
Project: Soham Heights, Kandivali West, Mumbai
Claim: The builder marketed the project as a 21-23 floor tower.
Reality: An RTI filed with MHADA revealed that the Completion Certificate was issued only up to approximately the 11th floor.
Cost of RTI Check: ₹399
Risk Avoided: Potentially crores in losses.
Buyers who filed RTIs before investing saved themselves from purchasing flats on illegally constructed floors. Those who didn’t are now fighting legal battles and facing uncertain outcomes.
How to Protect Yourself: 5 Essential Steps
Before you commit to a property, follow these steps:
Step 1: Ask for the Sanctioned Plan and Completion Certificate
Request these documents from the builder or developer. While they may provide them, these should be verified independently through RTI.
Step 2: File an RTI Independently
Don’t rely on the builder’s claims. File an RTI with your local municipal corporation or housing authority. You can learn how to file RTI online here.
Step 3: Verify Your Specific Floor
Confirm that the exact floor you’re buying is within the approved floor count. If the CC is up to the 11th floor and you’re buying on the 15th, that’s a major red flag.
Step 4: Check for Revised Plan Applications
Ask in your RTI whether the builder has submitted revised plans for additional floors. If they have, ask for the approval status. Pending applications are a warning sign.
Step 5: Link Payments to Approval Milestones
In your buyer agreement, tie major payment milestones to the receipt of Completion Certificates for your floor. This ensures the builder prioritizes obtaining approvals.
For more information on property approval verification, explore our comprehensive RTI services.
Related reading: How to Check Building Approval in India, RTI for Property Buyers: Complete Guide, and How Many Floors Are Approved for My Building?
Conclusion: The ₹399 Check That Could Save Crores
The gap between approved and constructed floors is the biggest hidden risk in Indian real estate. It’s not glamorous. It doesn’t make headlines. But it’s destroying the dreams of thousands of homebuyers.
The good news? You have a tool to protect yourself: the RTI Act. For just ₹399 and 30 days of waiting, you can access official records that reveal the truth about your building’s approval status.
Don’t skip this step. Don’t assume the builder is being honest. Don’t trust real estate agents who brush off your concerns. File an RTI. Verify independently. Invest safely.
Your dream home is worth protecting. And an ₹399 RTI check is the cheapest insurance you can buy.
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