State RERA has no power to change its order, says TNREAT
A sale agreement of an undivided share of land and a construction contract was executed for Rs 38.66 lakh in the year 2015.
CHENNAI: The Tamil Nadu Real Estate Appellate Tribunal (TNREAT) observed that the Tamil Nadu Real Estate Regulatory Authority (TNRERA) cannot modify its order passed in the execution proceedings while hearing an appeal filed by a home buyer.
Home buyer G Baskaran had supplied building materials to the promoter Optima Homes Private Limited for residential project work. Subsequently, he wanted to purchase an apartment under the project and paid Rs 1 lakh as an advance in 2013. The promoters agreed to adjust the bill amounts payable towards the cost of building materials supplied by the buyer.
A sale agreement of an undivided share of land and a construction contract was executed for Rs 38.66 lakh in the year 2015. The bill amounts due to the appellant have been adjusted with the amount payable by the appellant on various dates under the construction agreement.
In 2018, Baskaran performed a house warming function without completing some minor works. However, the promoters did not come forward to execute the registered sale of the deed in favour of the appellant. Thus, the homebuyer preferred a complaint before TNRERA.
Out of the five respondents, who are office bearers of the promoter firm, respondents 2 and 5 -- who are brother and sister, contested before the TNRERA. Two other respondents remained absent and one respondent was reported dead even before the filing of the complaint. The brother and sister claimed that the apartment was sold to their brother as the home buyer cancelled the booking.
After hearing the case, TNRERA directed the respondents to hand over an alternative flat or explore the possibility of resale of the same flat as the new allottee is their brother. It also said if they fail to hand over the flat, they should refund Rs 40.26 lakh with interest.
As the respondents failed to comply with the directions, Baskaran filed an execution petition. Hearing this petition, TNRERA relieved the second and fifth respondents and issued a recovery warrant against the first respondent company. Aggrieved by TNRERA’s order, the buyer filed an appeal in front of TNREAT.
On hearing the appeal petition, the Tribunal observed that the TNRERA, while exercising the power to execute its order as per section 40 of the Tribunal Act, has no power to alter or modify its order in the execution proceedings. It also directed the TNRERA to issue a recovery warrant against all the respondents except the fourth respondent, who is no more.
Real estate board has directed the TNRERA to issue a recovery warrant against all the respondents except the fourth respondent, who is no more