Chennai

Builder told to refund ₹40 lakh to homebuyer

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TNRERA also asks developer to pay ₹2 lakh compensation, ₹20,000 litigation cost

The Tamil Nadu Real Estate Regulatory Authority (TNRERA), Chennai, has directed Emaar MGF Land Limited to refund ₹40.27 lakh paid by a homebuyer along with interest and also pay compensation of ₹2 lakh for failing to deliver a flat.

In his compliant, Adnan said that he had booked a flat at the developer’s ‘The Avenues AT The Esplanade’ project in Tondiarpet for about ₹41.19 lakh.

The buyer and developer entered into a construction and sales agreement on March 25, 2013 and the buyer paid ₹40.27 lakh, according to the complaint.

The developer undertook to deliver the flat within 24 months with a grace period of 6 months, but till date the construction had not been completed, it added.

TNRERA noted that Section 18 of the RERA Act gives a homebuyer the right to demand the amount paid by him towards the purchase of the flat along with interest and compensation on the ground of failure on the part of the promoter to hand over the flat as per the terms of the agreement. It said the refund should be made along with an interest of 10.15% per annum for the amounts paid from the dates of respective payment till repayment by the developer. It fixed the ₹2 lakh compensation for mental agony, hardship and inconvenience caused to the homebuyer and a litigation cost of ₹20,000.

TNRERA directed the developer to pay the amounts within 30 days of its order.

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Printable version | Jan 28, 2020 1:05:03 AM | https://www.thehindu.com/news/cities/chennai/builder-told-to-refund-40-lakh-to-homebuyer/article30482058.ece

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