The Tamil Nadu Real Estate Regulatory Authority (TNRERA), Chennai, has directed Phoenix Serene Spaces Private Limited to pay compensation of ₹1 lakh each to home buyers and refund the amount paid along with interest for non-delivery of flats.
In her petition, Bhuvanadevi Jayakumar said she had booked residential row houses in the builder’s project ‘The Commune in The Village’ at Kalavakkam village near Old Mahabalipuram Road and had paid about ₹1.03 crore of the total ₹1.20 crore.
Since she was working in the United Arab Emirates, the advance was paid in 2015, and the construction and sale agreement was signed in 2016.
The builder was supposed to deliver the villa houses by January 2018 but put it off to 2019. After the delay, Ms. Bhuvanadevi sought to withdraw her purchase.
TNRERA noted that as per a Supreme Court verdict, if a builder does not hand over possession of the flat within the time stipulated in the agreement or within a reasonable time thereafter, the buyer could not be compelled to take possession of the flat.
It ruled that the buyer was eligible for a refund in the present case.
Second complaint
In a separate complaint, Col. K.M.G Panicker, Radhika Panicker and Deepak Panicker said they had booked an apartment in the project in 2015 and made payments of ₹48.6 lakh out of the total ₹51.10 lakh. They sought a refund as the apartment was yet to be handed over to them.
TNRERA granted compensation of ₹1 lakh to all home buyers and told the builder to refund the amount paid along with interest of 10.05% per annum.
TNRERA also told the builder to refund about ₹3.6 lakh spent by Ms. Bhuvanadevi for registration and interior decoration, in addition to the litigation cost of ₹25,000.
