Approved projects cannot be split by promoters, says TNREAT

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 TNRERA against promoters against the latter’s decision to reduce the project area. They had entered into an agreement with promoter to buy an apartment in a project near Tiruporur 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. To circumvent the provisions of the Act, the promoter segregated the 5 towers as if this was a separate project and compelled homebuyers to register sale deed, the complaint added.

The homebuyers 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. They found that the layout and approved plan had been altered by an imaginary line and there was no formal sub-division nor any application made or approved by concerned authorities. This was done without either oral or written consent of allottees.

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

However, the promoter claimed there will not be any reduction in the undivided share of land as given under the agreement. Hearing the sides, TNRERA directed the promoter to execute sale deed exactly as per the agreement.

Following the TNRERA order, the promoter preferred an appeal with TNREAT. Leena Nair and R Padmanabhan of TNREAT observed that the reduction of the project area will affect the right of enjoyment of the homebuyers and dismissed the appeal.

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