‘Promoter can’t carve out unapproved project within approved project’

CHENNAI: While observing that the unilateral reduction of project area by promoter will curb right of enjoyment of homebuyers, Tamil Nadu Real Estate Appellate Tribunal (TNREAT) pointed out that the promoter cannot carve out an unapproved project within an approved project by notionally dividing the area of an approved project into two.

Homebuyers Shobana Subramanian, Varun Gopal and V Subramanian filed a complaint with Tamil Nadu Real Estate Regulatory Authority (TNRERA) against promoters against the latter's decision of reducing the project area. The homebuyers entered into an agreement with promoter to buy an apartment in a project near Thiruporur and the promoter agreed to provide 339 sqft of undivided share out of total project extent of 37.36 acres, the complaint said.

The project contained 14 towers and while the complaint was filed, five towers were completed. While the remaining towers were under construction, the RERA Act came into force. In order to circumvent the provisions of the Act, the promoter segregated the 5 towers as if this was a separate project and compelled the homebuyers to register sale deed, the complaint added.

The homebuyer came to know that the total extent of land in which the proportionate undivided share to each allottee is to be conveyed, has been reduced from 37.36 acres to 12.82 acres. The complainant found that the layout and approved plan had been altered by the respondent by an imaginary line and there was no formal subdivision nor any application made or approved by concerned authorities. As per the complaint, this was done without either oral or written consent of the allottees.

There are no common amenities such as club house, STP and others in 12.82 acres, but they are provided outside 12.82 acres within the 37.36 acres.

On the other hand, the promoter claimed there will not be any reduction in the extent of undivided share of land as provided under the agreement. Hearing the sides, TNRERA directed the promoter to execute sale deed exactly as per the agreement conveying 339 sqft of undivided share out of the entire project extent of 37.36 acres.

Following the TNRERA order, the promoter preferred an appeal with TNREAT. Leena Nair and R Padmanabhan of TNREAT observed that the unilateral reduction of the project area from 37.36 acres to 12.82 acres will adversely affect the right of enjoyment of the homebuyers over the common amenities and dismissed the appeal.