Lack of EB connections makes apartment projects incomplete: TNRERA

CHENNAI: While ordering promoters to refund the cost of an apartment with interest, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has observed that absence of power connection would make the project incomplete.

Complainants Sampath Desikan and Latha Rengarajan have booked a three-BHK flat in Palm Riviera project near Padappai developed by as many as 7 promoters. An agreement was entered in September 2017 and homebuyers paid the entire consideration of Rs. 76.74 lakh in April 2019.

As per the agreement, the delivery of the completed apartment should have been made in September 2018, but the delivery has not been made on time.

Following this, the homebuyers sought refund but promoters sought extension of time for delivery citing force majeure conditions. The complainants pointed out that despite the project being an ongoing project, the respondents ought to have registered the project with the TNRERA.

On the other hand, the promoters submitted the completion certificate application dated May 2017 and received the certificate in December 2018. They also submitted that the complainants did not adhere to the payment schedule and delayed payments entitle the respondents to extend the date of delivery. They sought Rs 1.55 lakh as interest towards the delayed payments from the complainants. Promoters questioned the maintainability of the complaint citing the completion certificate.

However, the complainants alleged that the claim of the promoters availing completion certificate is false and pointed out that the TNEB was yet to make allocation of EB meters and others. The connection would be made only based on the completion certificate.

Hearing the sides, Sunil Kumar, single member bench of the TNRERA, observed that the respondents indicated the absence of EB connection and admitted that the same would be given only after the completion of the project. Hence, it is clearly made out that the apartment was not handed over to the complainants in time.

Following the observation, the single member bench ordered refund with interest of 9.30 per cent and gave liberty to move the adjudicating officer for claiming the compensation portion of the complainants.