TNRERA orders builder to refund buyer for refusing to provide documents

SN Karthikeyan, the buyer, had paid an advance of Rs 5.36 lakh to purchase a plot in Ambattur developed by VGN Property Developers Pvt Ltd. As the total cost of the plot was fixed at Rs 1.07 crore, Karthikeyan paid five per cent as advance payment in September 2019. On examination of the documents furnished by the developer, the legal advisor of the complainant opined that the documents are sufficient to determine the clear title and copies of the order issued by the asset sale committee of BIFR and other documents are necessary to trace the title of the property.

After that, the complainant contacted the respondent several times to get the documents. On meeting in person, the officials of the developer intimated that they do not have those documents. Following this, Karthikeyan requested a refund of the amount given as advance. But the respondent refused to pay. The promoter argued that the complainant was not an allottee in the project and had only signed the application form in which it was clearly stated that the claim for refund of the booking advance would not be entertained.

“As per the cancellation clause in the booking form, the complainant is entitled to a refund after deducting five per cent of the unit cost. Since the complainant paid only five per cent, he is not entitled to a refund,” the respondent submitted.

Hearing both sides, adjudicating officer G Saravanan, observed that the obligation of the promoter to pass on clear and marketable title is indisputable and the seller of the property cannot dictate terms to the complainant to the buyer as the documents are not at all necessary for the purchase of the property. “The Forum cannot delve into the question as to whether those documents are necessary or not for purchasing the property based on the legal opinion. But it is obvious that no purchaser can be compelled to purchase any property without subjective satisfaction as to clear and marketable title of the property,” he observed.

An order has been issued to refund the amount with interest along with Rs. 75,000 for compensation and litigation expenses.