Tag Archives: TNRERA

Developers collecting money without agreement is violation- TNRERA

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Developers who collect payments from home buyers without entering into a construction or sale contract are in violation of the TNRERA Act, the state property regulator has determined.

Tamil Nadu Real Estate Regulatory Authority, in a recent order noted that partial payments with “expression of interest” with a promise of refund/repayment were misleading and were intended to circumvent legal proceedings.

The complaint concerns “The Goodwood Residence” in Cenotaph Road area of ​​Chennai, developed by Cenotaph Developers LLP and Olympia Tech Park Chennai Pvt. Ltd. 

The complainant’s or buyer documentation stated that Rs 3.63 crore had been paid to developers. It was a part of a “non-binding expression of interest” for the purchase of an apartment in a housing project in 2016. A year later, the complainant/buyer decided to withdraw from the project and demanded compensation from the developer. 

The developer after deduction of almost Rs 12.8 lakh returned only Rs 3.5 crore. The developer returned Rs 3.5 crore after deduction of almost Rs 12.8 lakhs as service taxes. However the complainant/buyer filed a complaint to TNRERA and demanded a refund of the amount withheld.

In statements, the developers rejected the allegations, declaring that the claim was prima facie not maintainable for want of jurisdiction.

Collected 80% amount without entering into sales agreement

TNRERA, after listening to the views of both parties, said that developers charged about 80% of the cost without entering into a sales or construction agreement. This is a clear violation of Article 13 of the RERA Act. In 2016, the developers received two cheques of Rs 95 lakhs from the complainant as “expressions of interest”. G. Saravanan, TNRERA Judge said that the receipt of the payment with the promise of compensation was intended to circumvent the legal procedure.

Furthermore, the developers failed to demonstrate that they provided taxable services to the complainants, which was registered with the tax authorities in the service for the implementation of the specified payment in relation to the project. The complainant thus is entitled to a deductible amount together with an interest rate of 10.2% in accordance with the order of the real estate regulator’s.

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No compensation if agreement doesn’t provide for it: TNRERA

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CHENNAI:  The Tamil Nadu Real Estate Regulatory Authority (TNRERA) said the home buyer would not be entitled to compensation after accepting the promoter terms and conditions that rule out for delay in delivery.

The case concerns a contract without a construction contract between the builder and the buyer of the house, and the brochure does not contain details about the reason for late possession of that apartment. The section in the brochure on construction delay states that if construction is delayed for any reason, no interest or compensation is paid.

Agreeing with terms, the prosecutor made an application for allotment of the dwelling unit. Consequently, the claim for compensation for the delay is not substantiated, said G. Saravanan, bailiff at TNRERA.

Possession without Car Parking

A housing project in the city was carried out by the non-profit organization i.e, Indian Railway Welfare Organization. 

The prosecutor, one of the leading members of the organization, demanded an allotment. Although the project launched in 2006, ownership given in 2019 without a car parking facility. The prosecutor requested compensation for the lack of open parking and delayed delivery of apartment.

Countering this, the developer denied all allegations, saying the delay was due to permits from local agencies. The permits from these local bodies or agencies were not in his control. According to the developer, the prosecution had no right to require open parking as it was optional and subject to the availability of land.

No Compensation-

TNRERA said- After hearing the views of both parties, TNRERA advised that no amount was charged for car parking space. The prosecutor also did not opt for an exclusive parking space either. In light of the circumstances, it cannot be said that the prosecutor had suffered any mental agony. Hence, the prosecutor was not entitled for any compensation.

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