TNREAT imposes penalty for misrepresentation

CHENNAI: Acting tough against promoters, who used same RERA registration number for two different projects in advertisements violating the norms, Tamil Nadu Real Estate Appellate Tribunal (TNREAT) has imposed a penalty of Rs. 25 lakh against the promoters.

Home buyer L Suresh Kumar filed a complaint with the TNRERA against promoters Dawning Developers LLP and Casagrand Builders Private Limited. In the complaint, the home buyer said that he intended to buy a flat from the promoter in and around Ambattur.

In one website, he found that the respondent (promoter) was promoting an ongoing project by name Casagrand Crescendo at Nolambur.

The website also contained RERA registration number. Another website of the promoter stated that there was another ongoing project at Ambattur with same RERA registration number as of Casagrand Crescendo.

He also found that the promoter was promoting an ongoing Medavakkam and and another project in Perumbakkam with same RERA registration number.

He alleged that the promoter indulged in misrepresentation and misleading the buyers. The respondent used the RERA registration numbers for projects which were not at all registered with RERA.

However, the promoters argued that the website mentioned by the complainant is not used for slaves related activities and are used only for surveying activities. The promoter also claimed that no complaint received from any customers regarding the alleged misleading or misrepresentation of facts about the project.

After hearing thr sides, TNRERA imposed a penalty of Rs. 10 lakh for misrepresentation and publishing incorrect and misleading particulars in the website of the respondent.

Aggrieved over the same, the promoter appealed before the Tribunal.

While hearing the appeal, the Tribunal observed discrepancies regarding the survey numbers given for Casagrand Crescendo as survey numbers given by Greater Chennai Corporation available on the TNRERA website do not match with the details given in the respondent's website.

"Even on earlier occasions, the promoter had twice committed similar violations and was imposed of penalty of Rs. 10 lakh and above by RERA and TNREAT. While dismissing the appeal and upholding RERA order, the Tribunal imposed further Rs. 15 lakh penalty. The promoter should pay the entire penalty within a month.