Chennai

TNRERA directs builder to pay ₹5 lakh compensation

There was a delay in handing over a flat in Anna Nagar

The Tamil Nadu Real Estate Regulatory Authority (TNRERA), Chennai, has directed Ozone Projects Pvt. Ltd to pay a compensation of ₹5 lakh to home buyers, for delay in the delivery of a flat at their “Metrozone” project in Anna Nagar.

Kumaran and Vijisarguna Kumaran had booked a flat in the project on March 15, 2013, and entered into sale and construction agreements for a total cost of about ₹1.56 crore. They had paid about ₹1.47 crore, according to their complaint.

As per the terms of the construction agreement, the developer undertook to complete the construction and deliver the possession of the flat in April 2015, with a grace period of three months, they said.

However, the developer handed over the keys of the flat only on November 14, 2018, with an invoice balance of about ₹9.53 lakh, they said.

They further noted that as per the construction agreement, the compensation for the delay period was fixed as ₹5 per sq. ft per month, which works to about ₹3.08 lakh. The home buyers said the agreement was one-sided and sought a higher compensation at ₹20 per sq. ft, and ₹5 lakh compensation for mental agony.

TNRERA also fixed a sum of ₹20,000 towards litigation expenses. It directed the developer to pay the compensation and costs to the buyers within 30 days of its order, dated December 10. The authority said the said amount could be adjusted from the balance owed to the developer, and the remaining was to be paid by the complainant.

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Printable version | Feb 29, 2020 7:01:21 PM | https://www.thehindu.com/news/cities/chennai/tnrera-directs-builder-to-pay-5-lakh-compensation/article30280767.ece

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