According to the FIR, two kinds of flats were sold by the builder: one set had a unit cover area of 1431 square feet and the other had a unit cover area of 1567 sq ft. (Unit cover area excludes the common space like corridors, staircases and lifts). Whereas upon physical verification and measurements of the flats it was found that they were actually built upon a `carpet area' or unit cover area of 960 sq ft and 1008 sq ft, respectively.

The police said the apartments in Mayfair Towers, after being sold to individual owners, was mortgaged by the builder to the Housing Development Finance Corporation (HDFC) and Life Insurance Corporation (LIC) against loans.

According to the FIR registered on Wednesday at the NIT Police Station, the builder allegedly misled buyers of apartments in Mayfair Tower saying they were within the postal zone of New Delhi.

The promoter took 10 per cent or more at the time of booking the flats, subsequently drew up an agreement which was ``one-sided'' and since the booking amount had been encashed, ``buyers had no option but to execute it,'' the FIR said. The complaint has been registered by the Mayfair Towers Residents Welfare Association.

After receiving 90 per cent of the payment, the builder unilaterally produced a ``Maintenance Agreement'' which the purchasers had to sign before they could take possession of the flats, the FIR said.

Raman Sood, the managing director of the Ajay Enterprises when contacted on phone, said,``If the agreement was one-sided and did not suit them they should have asked for the refund of the 10 per cent of the sum paid at the time of booking. But nobody asked for that, and now after living for more than three years in the flats they are making a hue and cry''.

About the mortgaged of the property, he said, ``Some years ago it was mortgaged to the HDFC for a loan but it is no longer under mortgage.'' When asked how he could have mortgaged apartments that were sold, Sood claimed: ``At the time the building was mortgaged, we still owned a majority of the flats and still we own a few flats there''.

Sood said that he sold the flats as Super Area (the area of a flat including the space for corridor, lifts and stair cases) and not the unit covered area, a point that is being challenged by the residents' association in its police complaint.