Property lawyer: In case of allotment at tentative price, the Builder/ Authority is entitled to increase the price of plot/flat on completion; SC.

Supreme Court of India

Justice DY Chandrachud

It was held by the Supreme Court that when a plot / flat / house has been allotted at a tentative or provisional price, subject to final determination of price, on the completion of the project. The development authority shall be entitled to revise or increase the price. But, however, where the allotment is at fixed price, such higher payments cannot be demanded.

It was held so in the case titled as "J Visakhapatnam Metropolitan Region versus Chavva Sheela Reddy", by the SC. The appellant, who was the public authority, was allowed to increase the rate by the Supreme Court after completion of the project, as the price was tentative, subject to final determination, when the same was allotted to the consumer.