New Town | January 10, 2026
In a significant ruling reinforcing consumer rights in commercial real estate, the West Bengal Real Estate Appellate Tribunal has directed PS Group to refund money with interest for a shortfall in the carpet area of a commercial office unit in New Town, Kolkata.
The verdict underlines that statutory real estate regulations override private contractual clauses when discrepancies arise.
Dispute Over Carpet Area in PS ABACUS Project
A corporate allottee of an office unit in PS Group’s ABACUS project filed a complaint that led to the case.
The buyer claimed that the usable carpet area was less than what was specified in the sale agreement, even though they had paid in full.
The New Town Kolkata Development Authority (NKDA) was designated by the West Bengal Real Estate Regulatory Authority (WBRERA) to measure the unit in person in response to the complaint.
In contrast to the 390 square feet specified in the agreement, the inspection revealed that the actual carpet area was 380 square feet.
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Tribunal Rejects Builder’s Appeal
PS Group challenged the order before the Appellate Tribunal, citing contractual tolerance clauses.
However, the tribunal rejected the appeal, ruling that private agreements cannot weaken RERA‘s statutory definition of carpet area, which excludes structural walls, plaster, and finishes.
According to legal observers, the decision makes it very evident to developers that even slight variations in declared carpet area are subject to legal action, especially in commercial properties where accurate measurements are crucial for valuation and rental income.
Implications for New Town’s Commercial Market
Urban planners and market analysts view the judgment as especially relevant for New Town, which is rapidly emerging as a major commercial and business hub.
Accurate disclosure of carpet area is critical for:
- Fair property valuation
- Rental and leasing transparency
- Infrastructure and occupancy planning
- Reducing future litigation risks
The tribunal has confirmed that statutory enforcement can provide allottees with prompt relief by ordering the immediate release of the refund along with accrued interest.
The decision is anticipated to increase long-term trust in urban real estate markets, strengthen regulatory compliance, and improve transparency as commercial and mixed-use developments spread throughout Kolkata‘s planned townships.
Delayed Possession Claim Denied
Regarding delayed possession, the tribunal observed that since possession had been lawfully offered following the issuance of the occupancy certificate, the allottee’s claim for interest could not be upheld.
The court rejected the demand for additional interest because the agreement did not allow withholding possession due to a carpet area dispute.
According to legal experts, this distinction clearly outlines obligations on both sides, protecting consumers and preventing legal property transfers from being delayed by technical disputes.