Builder enters into agreement with buyers, TNRERA orders relief

CHENNAI: Pointing out an order passed by the Supreme Court that builder could not seek to bind the buyer with one-sided contractual terms, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ordered a builder to provide compensation for delaying the hand over of flats.

Home buyers K Ravichandran, R Maran and R Rajendran filed separate complaints with the authority against Sri Lakshmi Builders Pvt Ltd.

As the complaints are against same builder and pertaining to same project, the Authority heard the complaints together.

In the complaints, the homebuyers said that they book flats promoted by the builder in Kavanoor village near Sriperumpudur. In spite of having received payments, the builder has not honoured any of their obligations.

Due to the inordinate delay in completing and handing over of the constructed flats, the homebuyers are put to loss and hardships, the complaints said.

On the other hand, the builder claimed that the construction was undertaken on behalf of the complainants individually and the project does not fall under RERA. The respondent (builder) pointed out that the developer avails financial assistance from the bank while undertaking the project.

"The bank charges interest for the amounts. Therefore, the homebuyers, who failed to remit the installments in time is bound to pay the interest as well. The complainants made payments with huge delay. The complainants ought to be directed to pay the balance amount with interest," the builder argued.

After hearing the sides, G Saravanan, adjudicating officer, observed that even though the complainants paid the amounts as agreed by them for every stage wise construction, the respondent has not completed the construction.

"A perusal of the construction agreement entered between the complainants and the respondent reveals that terms are overwhelmingly one sided and only in favor of the respondent and out of 39 clauses, there is not even a clause giving any right to the complainants to claim compensation or damages for the delay on the part of the respondent as builder," he observed.

He also ordered the respondent to pay interests to the homebuyers based on the payment they had made along with compensation of Rs. 50,000 each towards mental agony.