Builder, contractor jointly liable for projects, says TN Real Estate Appellate Tribunal

The Tamil Nadu Real Estate Appellate Tribunal has ruled that the person who constructs any building or apartments for sale and the person who sells apartments, even though different persons, shall be considered promoters and shall be jointly liable under the Real Estate (Regulation and Development) Act, 2016 (RERA).

A person who acts as a builder or claims to act as a holder of Power of Attorney, from the owners of the land, on which the buildings or apartments is constructed for sale is also a promoter under the RERA Act, it added.

In 2019, 40 allottees had moved the Tamil Nadu Real Estate Regulatory Authority against Lakshmi Builders for non-delivery of flats in Kundrathur. The construction agreements were executed with most of the allottees in July 2012 and the scheduled completion date was 18 months. However, the project was not completed and must be registered under RERA, the complaint added.

S. Jayalakshmi is a proprietor of Lakshmi Builders and all approvals had been obtained in the name of her husband, V.T. Selvam, who administers the affairs of the firm. He had acted as power of attorney for the owner of the land for the project.

Tamil Nadu Real Estate Regulatory Authority had directed the developer to register the project, against which it moved the Appellate Tribunal. The developer said it is only a contractor to construct the flats.

S. Jayalakshmi even though designated as a builder, is doing construction work through her power agent/contractor construction of sale. She and her husband come under the definition of promoter, The Tribunal said. It also rejected the developer’s plea and upheld the verdict of Tamil Nadu Real Estate Regulatory Authority to register the project.

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Printable version | Sep 20, 2020 5:29:42 PM |

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