RERA issues recovery warrant as promoter fails to pay compensation

While hearing an execution petition filed by Swami Nadhan Nair, a home buyer, the adjudicating officer G Saravanan observed on Friday that the amount due to the complainant under the order was to be recovered as an arrear of land revenue, under the Tamil Nadu Revenue Recovery Act 1862. “It is just and necessary to issue a warrant under section 40(1) of the RERA Act read with Rule 26 of the TNRERA Rules,” he said in his order.

The complainant had booked a flat with the Marg Properties in a project near Tiruporur and entered into an agreement in August 2011. Despite giving an undertaking promising to deliver the fully constructed flat by June 2013, with a grace period of three months, the promoter failed to hand over the flat, forcing the homebuyer to approach TNRERA. Hearing the plea, the adjudicating officer had issued an order in September 2019 directing the promoter to pay compensation for the delay. As per the order, the promoter should have repaid the entire amount of of Rs 34.12 lakh to the homebuyer.

The officer noted that Marg Properties Limited and its managing director have not preferred any appeal against the order and have not also settled the amount as per the order.

Apart from the refund of the entire amount and interest of 10.15 per cent per annum, the homebuyer is also entitled to receive Rs 70,000 towards the cost of registration of UDS, loan processing and litigation expenses, it added. As the real estate project in dispute is in Tiruporur in Kancheepuram district, it has been ordered to send the recovery warrant to the Kancheepuram Collector.