Chennai

TN Real Estate Regulatory Authority directs builder to refund amount, pay ₹ 1 lakh compensation to buyer

The due date for the delivery of the completed house ended in January 2018, but the developer had not handed it over, a buyer in Kancheepuram district had complained

The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has directed a builder to pay a compensation of Rs. 1 lakh and also refund the amount paid by a home buyer along with interest for a delay in the construction and delivery of a row house.

S. Vijayalakshmi had booked a row house with Phoenix Hodu Developers Pvt Ltd in their project ‘The Commune IRIS’ on Old Mahabalipuram Road, Kalavakkam Village, Kancheepuram District and paid an advance amount as well as further amounts.

She entered into a sale and construction agreement in January 2016, and the developer undertook to complete construction and hand over the house within 18 months from the date of agreement, with a six-month grace period.

The due date for delivery of the constructed house including the grace period ended by January 2018 and the developer has not handed over the house, Vijayalakshmi said in her complaint.

The total price for the house was about ₹55.42 lakh and she has paid about Rs. 44.04 lakh.

In her complaint, Vijayalakshmi said she of a availed housing loan and was put to heavy loss and hardship due to the delay in construction and sought to withdraw from the project as well as demanding a refund of the amount along with interest, compensation and other costs.

TNRERA ruled that the buyer is entitled to a refund of ₹44.04 lakh along with the interest of 10.15% per annum for the entire amount paid from the date of respective payment till repayment by the builder.

It also fixed ₹1 lakh as compensation for the mental agony and hardship caused to the buyer and ₹25,000 towards litigation costs and directed the builder to pay the amount within 30 days of its order dated November 11.

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Printable version | Feb 17, 2020 11:51:03 AM | https://www.thehindu.com/news/cities/chennai/tn-real-estate-regulatory-authority-directs-builder-to-refund-amount-pay-1-lakh-compensation-to-buyer/article30086906.ece

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