Tribunal asks developer to refund home buyers for allowing appeal

The homebuyers Anitha Arun, Bharathi Arun and Sunitha Nandakumar had entered into an unregistered agreement with the developers Oragadam City Developers Pvt Ltd, New Town Housing, Value Build Homes, Vilagam Housing and Frontier Housing Pvt Ltd to buy two row-houses in 2011. Anitha Arun and Bharathi Arun paid Rs 27.86 lakh and the delivery date was fixed in October 2013, while Sunitha Nandakumar paid Rs 28.44 lakh and the delivery date was fixed as December 2013. 

The homebuyers approached TNRERA claiming the builders failed to hand over the houses on time and sought refund along with compensation. Even though the court notice was sent to the developers, they failed to appear forcing the TNRERA to issue ex parte order directing them to provide a refund with interest and compensation. 

Aggrieved developers appealed for waiver stating they are not in a position to pay the amount. They also claimed they had intimated the homebuyers that they can hand over the houses in December 2014 and claimed the adjudicating officer of TNRERA directed them to pay refund without considering the facts. 

The tribunal chaired by Justice B Rajendran observed that how far the plea of the developer is tenable has to be analysed and ordered the developers to pay up 30 per cent of the amount ordered by the TNRERA on or before January 10 for allowing the petitions and warned the developers of automatically dismissing the appeal if they fail to pay.