TNREAT allows homebuyer to construct villa on her own

CHENNAI: Giving a respite to a homebuyer, who suffered by slow construction of her villa, the Tamil Nadu Real Estate Appellate Tribunal (TNREAT) has allowed her to construct the villa on her own with any third party.

K Indira, a homebuyer, approached S and P Foundation Private Limited for purchasing a villa plot and to construct a villa. She paid Rs. 17 lakh in November and December 2018 as booking advance and a tripartite agreement was entered.

The promoter wanted to execute a second tripartite agreement but the homebuyer did not sign as there was a reduction in the carpet area from 1,190 sqft to 1,177 sqft even though the total villa area was retained as 1,828 sqft.

The total sale consideration was fixed at Rs. 89 lakh including cost of the plot, villa and construction costs.

The homebuyer had paid Rs. 43.24 lakh during August 2019 but the promoter did not commence work and could lay foundation stone only towards the end of 2019. At that stage, disputes arose between the parties, especially over the building plan and total built-up area deviations from the agreement.

The promoter demanded additional payment and stopped the work abruptly forcing the promoter to file a complaint before TNRERA. She also pointed out that the project had not been registered with RERA.

However, TNRERA failed to consider the primary duty of the RERA regarding the 'Registration of Project'. Aggrieved upon the same, she preferred an appeal.

Hearing the appeal, Leena Nair (administrative member) and R Padmanabhan (judicial member), observed that TNRERA did not apply its mind and the project which was submitted for registration was returned as unregistering by stating that they were not required to be registered under the Act.

The Tribunal also directed to register the project under TNRERA within two months and deposit the penalty totalling Rs. 13.35 lakh before the TNRERA within two months. The promoter has also been directed to pay Rs. 12.89 lakh towards compensation and refund Rs. 26.86 lakh with 12.05 per cent interest.

"The appellant is at liberty to construct the villa no.218 on her own and on her own costs with any third party, " the order said.