Promoter fails to gift open space to buyers: RERA dismisses plea

CHENNAI: Clarifying that a project will not be exempted from RERA registration if the roads and open spaces were not gifted to the concerned local bodies before the date of commencement of the Real Estate (Regulation and Development) Act 2016, Tamil Nadu Real Estate Appellate Tribunal (TNREAT) has dismissed a appeal filed by a promoter.

As many as 10 complainants filed a complaint with Tamil Nadu Real Estate Regulatory Authority (TNRERA) against Sri Narayana Foundations. As per the complaint, the complainants booked residential plots in a project developed by the promoter in Sepakkam Village in Cuddalore district. They said that the cost of 1,200 sqft was fixed at Rs 54,000 and the buyers were allowed to pay Rs. 2,000 per month for 27 months.

The project commenced in 2010 and the promoter carried out wide publicity about the scheme through newspapers and by distributing handbills. About 1,000 subscribers (buyers) joined in the scheme and booked their plots. Some of them booked more than one plot. Similarly, the complainants also booked plots and paid all the installments by 2012.

Later during 2016, the State government made approval from DTCP to be compulsorily obtained. Citing the heavy loss due to rearranging the whole layout due to the increase in the width of the road and allocation of common area, the promoter sought additional Rs 90,000 from the buyers.

Hearing the sides, TNRERA passed an order directing the promoter to execute sale deeds in the name of allottees, who failed full sale consideration of Rs 54,000 before December 31.

However, the promoter preferred an appeal before the Tribunal.

"The appellant (promoter) cannot go back from his promise and insist any additional payment for executing and registering the sale deed in favour of the respondents, who had honestly believed the promises of the appellant and paid their hard earned money before 10 years," the Tribunal observed.

The Tribunal dismissed the appeal at the admission stage and directed the promoter to comply with the directions of TNRERA.