Chennai

Homebuyer awarded ₹5.30 lakh compensation

Builder’s argument that RERA Act does not apply to his project rejected by Tamil Nadu Real Estate Regulatory Authority

The Tamil Nadu Real Estate Regulatory Authority (TNRERA), Chennai, has directed A.R.R.R. Constructions Chennai (P) Ltd. to pay a compensation of ₹5.30 lakh to a homebuyer for non-delivery of flat.

In their complaint, Sridhar Srinivasan and Subhasree Nangamangalam said they booked a flat developed by the builder in Nanganallur for ₹1.40 crore.

On July 8, 2013, they entered into a construction and sales agreement with the developer and paid ₹1.37 crore. As per the terms of the agreement, the builder was to complete and hand over possession of the flat within 12 months from the date of getting building plan approval.

In July 2015 the developer promised to deliver the flat within six months and in January 2017, he promised to hand it over by April 2017. He also agreed to pay a compensation of ₹20,000 per month till the delivery of flat, but the construction was not completed, the complaint said.

The developer said the project was developed on land less than 500 sq.m and the number of apartments was not more than eight. So it does not fall under the purview of the RERA Act and need not be registered. He also said 95% of the project was completed and that the realty business witnessed a downfall. However, G. Saravanan, Adjudicating Officer, TNRERA, noted that nowhere in the RERA Act was it mentioned that the Act was applicable only to registered projects.

TNRERA fixed the litigation cost at ₹20,000 and directed the developer to pay it within 30 days from its order dated December 30. In case of adjustment towards dues from buyers, the balance amount shall be payable by the respective party.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Feb 24, 2020 1:21:13 AM | https://www.thehindu.com/news/cities/chennai/homebuyer-awarded-530-lakh-compensation/article30464680.ece

Next Story