MHC fines a flat owners assn for suppressed material docus against developer

CHENNAI: The Madras High Court has fined a flat owners association for suppressing material documents and obtained a stay against the construction works of Hiranandani Developers Private Limited.

Chennai Hiranandani Residents Welfare Association represented by N Venkatathri moved the Madras High Court (MHC) seeking to quash the DTCP approval issued by The Directorate of Town and Country Planning to revise the plan for construction of new towers, in 2020.

The case was heard by Justice RMT Teekaa Raman. The Justice observed that the impugned approval given by the secretary of the Housing and Urban Development Department and the Directorate of Town and Country Planning is not violative of any legal right of petitioners.

Further, the respondent has acted in consonance with the terms stipulated under the Real Estate (Regulation and Development) RERA Act and Tamil Nadu Real Estate Regulatory Authority (TNRERA) Rules, observed the Justice.

Subsequently, Justice ordered the flat owners association to pay Rs.1,19,500 as a fine (Rs.500 for each member of the association) and dismissed the petition.

According to the petitioner, the Hiranandani Developers Private Limited obtained approval from the government to construct a gated community integrated with 14 towers, on 120 acres at Egattur, Chennai. The developers had completed phase I of the construction and handed over the flats to the owners.

However, in phase II the developers changed the plan and started to construct extra two towers in the allotted spot to construct a clubhouse as per DTCP approval without the consent of the flat owners. The petitioner alleged that the Housing and Urban Development Department also approved the revised plan which is against legality and sought to quash the approval.

It may be noted that the petitioner obtained a stay against the impugned construction from the MHC earlier.

Senior Advocate P.S. Raman, appeared for Hiranandhini developers contending that by 'suppressing the material fact, the petitioner had obtained interim injunction resulting in a heavy loss due to stoppage of work.

Further, he argued that the exchange of notice between the parties, prior to the institution of the petition, will amply demonstrate that the petitioner Association is indulging in arm-twisting the developer's firm to give, free of cost, membership to the clubhouse and also for other facilities. The advocate claimed that the petitioner association having merely 239 members does not represent the flat owners and said that the apex association of the gated community with 2022 members has given consent to the revised plan and requested to dismiss the petition.