TNRERA penalises developer for selling common area

Tamil Nadu Real Estate Regulatory Authority (TNRERA) has held the sale of a common area measuring 230 sq. ft by developer G.K.S. Technology Park Pvt. Ltd. to two home buyers as null and void and imposed a penalty of ₹5 lakh.

In his petition, K. Balasubramaniyan said he and his wife had bought a flat on the second floor in the builder’s “Tulive Viha” project in Anna Nagar in 2019. The apartment had a built up area of 1,594.21 sq. ft. and undivided share of 764 square feet.

He alleged that the developer sold the area specified as a common corridor measuring 230 square feet in the approved building plan to two other apartment buyers in the project for ₹17.25 lakh and sought relief against the sale.

In its response, the builder said the two home buyers bought adjacent (opposite) flats located in the fourth floor along with the common corridor as they wanted to enclose a small area to connect the two flats and amalgamate into a single unit.

TNRERA ruled that as per section-17(1) of the Real Estate (Regulation and Development) Act, 2016 has no right to sell the common area to individual allottees.

The promoter has no right or authority to sell the corridor space constituting common areas under section- 2(n)(ii) and Section-2(n) (Viii) of the Real Estate (Regulation and Development) Act, 2016 to any individual allottee as the corridor space is for the use of all allottees to be vested and maintained by the Association of Allottees, it added.

The Authority directed the developer to execute a rectification deed in the jurisdictional Sub-Registrar Office deleting the common area from the sale deed on or before May 31 and refund the amount and restore the common corridor as per approved plan by June 31.

It also asked the builder to register the project before May 31.

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Printable version | May 8, 2021 2:06:04 AM |

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