Carpet Area Means Net Usable Space, Cannot Be Diluted By Engineering Tolerance: WBREAT

The West Bengal Real Estate Appellate Tribunal (WBREAT) has held that “carpet area” must strictly conform to the statutory definition of net usable floor area. It ruled that promoters cannot rely on tolerance clauses, plaster thickness, or engineering explanations to justify a shortfall in the promised area.

A coram of Chairperson Justice Rabindranath Samanta and Administrative Member Dr. Subrat Mukherjee observed that “the intention of law maker was to protect the interest of consumers in real estate sector apart from allowing engineering tolerance, construction adjustments etc. which may be required in real estate project. So, the tolerance is allowed only in sanctioned plan, layout plan, fixtures and amenities which will primarily impact common facilities, structure and construction of building than the individual flat of consumers for which he has signed agreement and paid for allocated carpet area at unit cost "

It clarified that such tolerance has a limited role and cannot reduce the carpet area purchased by a homebuyer

The dispute concerned a commercial office unit in PS Group's “ABACUS” project in New Town, Kolkata. Babita Jodhani, representing Ayush Tradelinks Pvt. Ltd., entered into an agreement in May 2019 for an office with a carpet area of 390 square feet. She paid the entire consideration by January 2023.

During site inspection, she found the area to be smaller than the promised 390 square feet. On directions of the West Bengal Real Estate Regulatory Authority, the New Town Kolkata Development Authority measured the unit and reported the carpet area as 380 square feet.

WBRERA accepted the report and ordered a refund of the excess amount with interest. It also rejected interest for delayed possession since a possession notice had already been served.

PS Group as well as the homebuyer challenged the refund before the tribunal. It argued that carpet area should be measured from raw wall to raw wall. It contended that plaster thickness and enhanced partition walls should be added back. It also relied on a contractual clause permitting a three percent variation. The homebuyer opposed this, stating that such tolerance is not permitted under WBHIRA or RERA.

The tribunal rejected the promoter's submissions. It held that “for the purpose of determining carpet area, the controlling standard is the statutory definition under WBHIRA which mandates measurement of net usable floor area excluding wall thickness, plaster, finishes and structural components. The method of raw wall to raw wall measurement advocated by the Promoter and the inclusion of plaster or enhanced wall thickness are not in keeping with the statute.”

It said tolerance provisions apply only to sanctioned plans, layouts, fixtures, and amenities, and not to the carpet area of an individual unit. The tribunal further held that the 3 percent tolerance clause violated Rule 9 of the WBHIRA Rules.

On the allottee's appeal seeking interest for delayed possession, the tribunal found the claim untenable. Both appeals filed by the homebuyer and builder were dismissed, and the WBRERA order was affirmed.

Case Title: PS Group Realty Pvt. Ltd. v. Ayush Tradelinks Private Limited

Citation: 2026 LLBiz REAT (WB) 2

Case Number: WBREAT/APPEAL NO. 013/2025 and WBREAT/APPEAL No. 016/2025

For Appellant: Advocates Arindam Banerjee, Raja Baliyal, Rajarshi Ganguly and Vidhya Bhusan Upadhyay

For Respondent: Vinod Kumar Jodhani