if the developer wants to construct anything beyond the permissible FSI limit and increase the built-up area beyond permissiblesq ft, they have to purchase the space from the city authorities. The additional space purchased from the authorities is referred to as fungible FSI. It is also referred to as Premium FSI.

Fungible FSI is made available to Builders/Developers to the extent of 35% for Residential projects

2)  The premium to be paid by Builders/ Developers is calculated at the rate of 60% for Residential projects the prevailing Ready Reckoner Rates ("RRR)

3) ask builder for basis on which he is demanding Rs 7 lakhs as fungible charges 

Builder would not disclose the name of other flat owners 

2) you can consult a local architect on fungible charges charged by builder 

Typically, the built-up area is the space covered by all the floors in a building and is primarily dependent on the Floor Space Index (FSI).

If the developer wants to construct anything beyond the permissible FSI limit and increase the built-up area beyond the permitted area, they have to purchase the space from the city authorities.

The additional space purchased from the authorities is referred to as fungible FSI. It is also referred to as Premium FSI.

 To compensate the builders for the loss, the government made a provision of additional built-up space in lieu of a premium.

The premium levied is a percentage of the Ready Reckoner Rate (RRR) prevalent in that area.

For instance, residential properties attract 60 percent of the RRR as fungible FSI fee.

For a road width 30 to 40 feet, the Permissible Fungible FSI in Residential Properties is 20 percent.

If the land area is 2,000 sq ft and the FSI is two, and the abutting road width is 35 ft, then the builder can avail 20 percent additional floor space as fungible FSI.

Additional built-up area here would be:

Built-up Area x Fungible FSI

(2,000 sq ft x 2) x 20/100 = 800 sq ft.

The development charges in Mumbai is Rs. 35/sq-ft. or Rs. 350/sq-mtr. as per the Maharashtra Government and you have to calculate on Carpet area and not in built-up area.

Thus you can draft a notice to the builder based on the calculations made on the above guidelines on both the subjects referred here for opinion. 

The calculations for fungible charges was mentioned in my previous post.

Please note that the MCGM has modified the DCR on 12.01.2012.

The modified D.C.Regulations shall be applicable in respect of the building to be constructed or reconstructed only.

The fungible FSI is interchangeable and useable as a regular FSI. It is not necessary that owner /developer shall use it only for items mentioned in D.C.R.35(3) e.g. flower bed, balcony, voids, elevation features etc. It can be
used for these purposes and /or for enlarging the room sizes, or / and for additional rooms and/or for more dwelling units.

The quantum of fungible FSI (35%/20%) shall be on prorata basis as per actual user (residential user /all non residential user including commercial and industrial user) for the built up area and not based on the predominant user in the development. The fungible FSI over and above admissible Floor Space Index shall be allowed by charging a premium at the rate of 60%, 80% & 100% of the Stamp Duty Ready Reckoner Rates for residential , Industrial and commercial development respectively.

Yes you can ask them. Actually the builder only charges you with this sale price. No builder gives toy such break of fungible and development charges. Water charges and other society charges are variable or as per the Act of concerned state

You can challenge the same in rera or consumer court it's illegal to do so. If you need any further assistance then you can approach me through kaanoon or LinkedIn.

You can take the plea that terms of allotment are contrary to law . Builder wants to collect 50 per cent payment without executing registered agreement for sale in favour of buyer 

There's no question of court punishing you for default. 

You first ascertain that for what relief you would approach court and whether it would be legally tenable. 

You can consult your local advocate and obtain his opinion before taking any legal step. 

- FSI is the additional floor area developed by the builder over and above the FSI limit set by the government. 

- Further , the built-up area is the space covered by all the floors in a building and is primarily dependent on the FSI

- Further,   if the developer wants to construct anything beyond the permissible FSI limit and increase the built-up area beyond 6,000 sq ft, they have to purchase the space from the city authorities.

- Further , the additional space purchased from the authorities is referred to as fungible FSI. It is also referred to as Premium FSI.

- Further , the fungible FSI should not exceed more than 35 percent of the floor area in residential properties.

-  Legally , the builder cannot ask such charges from the buyer, and you can ask the builder for the details

Dear sir,

For increasing the permissible FSI limit they have to purchase the space from the city authorities and municipalities. Such additional purchases are known as Fungible FSI/ premium FSI. fungible FSI's can be extended up to 35 % for residential purposes and the rate for residential projects is 60%.

Draft a notice to your builder seeking the quotation and preferred calculation and enquire him how he came up with the current amount.

Thank you

1. development charges and fungible charges are contractual. It is agreed between the builder and flat buyer and recorded in the contract itself.

2. what you have read on some website is the development and fungible charges which the builder has to pay the authorities which sanction the building plans

3. the charges which the builder pays to the authorities would not be the same which he collects from the flat buyers

4. many times these charges are subsumed in the sale consideration itself and not charged separately 

5. the developer cannot ask for these charges from you if he has not mentioned them in the agreement for sale or if agreement is not registered, then as mentioned in the booking form or allotment letter

6. you can still file a RERA complaint against the builder for not registering the agreement for sale despite having collected more than 20% sale consideration. The builder has to explain his default and in the buyer's complaint he cannot complain against the defaults made by the buyer in making payments of the installments

7. if the builder is aggrieved by the late payments by you then he has to file his own separate complaint against you, which he has not done and therefore essentially waived the said conditions imposed on you

9. you can obtain certified copy from the office of the sub-registrar of any registered agreement for sale executed between this builder and another buyer in order to find out all the charges which have been mentioned in the agreement and are being collected from flat buyers