Chennai

TNRERA asks developer to refund ₹13.07 lakh with interest

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Builder also asked to pay ₹50,000 for causing mental agony

Tamil Nadu Real Estate Regulatory Authority (TNRERA), Chennai, has directed a builder to repay about ₹13.07 lakh along with the interest of 18% per annum to a home buyer for non-delivery of flat, as per the construction agreement.

The 18% per annum, as per the construction agreement, would be paid from the date of payment till November 29 (the date of its order), the Authority said.

However, G. Saravanan, Adjudicating Officer, TNRERA, said that the home buyer is entitled to get interest at the rate of 10.15% per annum, from the date of the order till repayment of the amount, since the rule 18 of TNRERA Act contemplates interest payable on the amount only at the highest cost of marginal cost of lending rate of SBI plus 2%.

In his complaint, P. Soundararajan said he entered into an agreement on August 11, 2014, for purchase of a flat in a residential project, Montana, by RVS Developers Pvt Ltd.

Out of the total sale consideration of about ₹16.7 lakh, he paid about ₹13.07 lakh. Since the construction work has not started, Mr. Soundararajan sought to withdraw from the project and refund of the amount paid along with interest of 18% per annum, as agreed by the developer under the agreement.

Compensation

The TNRERA also told the developer to pay ₹50,000 as compensation towards mental agony and ₹15,000 as litigation cost to the buyer. It directed the developer to pay the said amount within 30 days from the date of its order.

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Printable version | Dec 13, 2019 8:45:14 AM | https://www.thehindu.com/news/cities/chennai/tnrera-asks-developer-to-refund-1307-lakh-with-interest/article30143295.ece

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