TN RERA Orders Builder To Register Project Under RERA

TN RERA Orders Builder To Register Project Under RERA

The Tamil Nadu Real Estate Regulatory Authority (Authority) bench, comprising Sunil Kumar (Member), has directed builder to register the project under RERA and also to fix the structural defects in the project.

The complainant, who is a homebuyer, was allocated a flat priced at Rs. 43,00,000/- within the apartment complex developed by the respondent builder at Sevilimedu, Kancheepuram. The homebuyer claimed that upon receiving possession, the flat was in an incomplete state with construction done using substandard materials. Additionally, the homebuyer argued that the project had not been registered under TNRERA, was sold without necessary approvals from TNRERA and the Town Planning Authority, and lacked a completion certificate.

Consequently, the homebuyer lodged a complaint seeking a refund of the amount paid and penalties for the sale of an unregistered project.

Observation and Direction by the Authority: Upon review, the authority determined that the builder's failure to register the ongoing project under RERA violated Section 3 of the Real Estate (Regulation and Development) Act, 2016, thereby making the builder liable under Section 59 of RERA, 2016.

Regarding the demand for refund under Section 18 of the Real Estate (Regulation and Development) Act, 2016, the authority ruled that since the homebuyer had accepted possession of the flat on 06.03.2019, they were not eligible to demand a refund with interest.

Furthermore, based on the findings of an inspection committee constituted during the hearing to investigate structural defects, the authority noted deviations from the approved plan and identified structural deficiencies in the construction quality. The committee, comprising three professors from Anna University's Structural Engineering Department, recommended rectification of the structural defects in the project.

As a result, the authority directed the builder to rectify the structural defects promptly and to register the project under Section 3 of RERA, 2016. Additionally, the builder was instructed to pay a penalty of Rs. 1,00,000/- for selling flats without proper registration.