Tag: rera-tn

The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ordered Ozone Projects, a developer, to pay a refund of Rs 1.7 crore to one of the company’s clients with an interest of 9.3 per cent from date of complaint for failing to honour a 2011 agreement between the two on handing over the flat.

The complainant, Aley Cherian, had paid the amount to acquire a 3 BHK apartment at a residential complex in Metrozone, one of the developer’s luxury housing projects in Chennai.

However, Ozone did not hand over the flat to him as agreed in June 2014. As Cherian’s calls to the developer asking for a refund over the last eight years did not bear fruit, he finally filed a complaint to the TNRERA for intervention on April 8, 2021.

Sunil Kumar, a single-member bench of the TNRERA, after listening to the arguments of Cherian, represented by practising company secretaries K Gaurav Kumar and Alpha Jain asked the developer to refund the amount within 30 days by paying an interest rate of 9.30 per cent on the amount starting from the date of filing of the complaint to TNRERA.

Sunil Kumar, in his order, also said that Cherian is at liberty to move the adjudicating officer for claiming compensation. Similarly, the charge of the aforesaid amount as encumbrance shall be on the flat booked by Cherian till repayment of the claim as per the order.

Sunil Kumar also ordered the office of TNRERA to intimate the encumbrance created by the charge in the order to the sub-registrar concerned. Upon the repayment of the claim as per the order, Cherian shall execute the cancellation of the construction agreement and sale deed as the case may be at the expense of Ozone Projects, Sunil Kumar added. Rs 15 per sq ft was assured for a month’s delay.

The total cost of the apartment in the AB Tower of the complex was 1.92 crore. In November 2011, during the construction agreement, a sale deed was executed for Rs 22.56 lakh and Rs 1.70 crore was paid. The remaining amount was to be paid at the time of handing over the apartment.

In the event of a delay, the developer had agreed to pay a sum of Rs 15 per square feet per month till the resolution unit was handed over. The agreement stipulates that if the delay exceeds more than six months, the builder shall pay an interest of 10 per cent per annum for further periods of such delays.

Though the agreement was signed, it was not registered as the construction agreement stipulates the execution of the sale deed only on the completion of 80 per cent of construction, which did not happen.

During the hearing, Ozone Projects agreed that Cherian was entitled to seek a refund but it sought time. Sunil Kumar said that as per Rule 18 of TNRERA rules, the rate of interest payable shall be the highest marginal cost of lending rate of interest of SBI (7.30 per cent) plus 2 per cent per annum.

Source: https://www.newindianexpress.com/states/tamil-nadu/2022/jun/02/tamil-nadu-rera-asks-realtor-to-pay-buyer-rs-17-crore-flat-cost-with-93-per-cent-interest-2460769.html/a>

The Registration Department here is asking details of (Real Estate Regulatory Authority) RERA registration to record documents of apartments, villas, and layouts.

“We got the government communication on Monday and it has come into effect immediately. However, we do not ask for RERA registration for second sales as RERA is only for the promoters,” an official said.

The Registration Department asks for approval from the Directorate of Town and Country Planning or the authority concerned and now it has included RERA registration, the official said.

According to a document writer here, the Department is not registering documents if the RERA registration is not there. This order has come without any prior announcement and hence affecting consumers as they were not prepared for it. Now, they need to postpone registrations and wait for the RERA registration.

K. Kathirmathiyon, secretary of Coimbatore Consumer Cause, said according to the instructions given by the Department, “Where the area of land proposed to be developed exceeds 500 sq.mt. or the number of apartments proposed to be developed exceeds eight, inclusive of all phases, registration with RERA is mandatory for registration of the documents.”

This instruction was implemented all of a sudden, without any prior information or notification to the public. Registration of documents can be refused only if notified u/s 22A of Registration Act – as documents opposed to public policy and registration of unapproved sites is specifically banned under Section 22A of the Act. But, there is no provision in the Registration Act for mandatory RERA Registration.

Mr. Kathirmathiyon said if the total land developed exceeded 500 sq. mt (5,380 sq.ft), registration under RERA was mandatory. It meant all layouts needed to be registered, since 5,380 sq. ft meant normally more than just two sites. When the sites in approved layout were purchased, it was a one-time transaction between the promoter and the buyer. Hence, there should not be a need to ask for RERA registration. And, to regularise unapproved sites, the government had the regularisation scheme, he pointed out.

Source: https://www.thehindu.com/news/cities/Coimbatore/registration-under-rera-must/article38030162.ece

Citing an order of the Supreme Court, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ruled that consumers cannot be compelled to take possession of delayed apartment units. Since the developer offered the completed flat after much delay, the real estate regulator ordered the promoter to refund payment with interest and slapped a fine of Rs 1 lakh for causing mental agony to the consumers.

The issue pertains to a housing project developed by Ozone Projects Pvt Ltd in Anna Nagar. Two homebuyers approached TNRERA seeking refund and compensation for the apartments booked by them. According to them, the developer promised to deliver the flat by December 2016 with a grace period of three months, but failed to honour its commitment.

In its response, the developer said that during the contractual period, it suffered two natural calamities in 2015 and 2016.

After hearing both sides, TNRERA ordered that Section 18 of the RERA Act gives flat purchasers the right to withdraw from the project and demand the amount paid by them with interest including compensation, if a promoter fails to hand over possession of a flat on the date specified in the agreement. The Supreme Court in a case had noted that once a builder failed to fulfill its contractual obligation of obtaining the occupancy certificate and offering possession of the flat to the purchaser within the time stipulated in the agreement, the homebuyer could not be compelled to take possession, TNRERA adjudicating officer G Saravanan said in the order.

The real estate regulator directed the developer to return the amount paid by the two homebuyers and the bank, which offered loan to the complainants.

Source: https://timesofindia.indiatimes.com/city/chennai/tamil-nadu-real-estate-regulatory-authority-cant-compel-buyers-to-take-delayed-flats/articleshow/85296284.cms

CHENNAI

Builders of large housing projects in the state will soon have to convince the Tamil Nadu Real Estate Regulatory Authority (TNRERA) that they have the money to complete them and not leave home-buyers in the lurch midway.

“The basic idea is they should have a financial plan for completing the housing project,” TNRERA chairman K Gnanadesikan told TOI. The real estate regulator has already asked a couple of developers in the city to furnish these details before registering the projects. Developers of projects with 100 units and more must compulsorily present their financial contingency plan to TNRERA.

The TNRERA move comes against the background of several housing projects across the country being abandoned midway due to lack of funds with developers, leaving homebuyers in the lurch. According to the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, all ongoing housing projects above eight units or more than 5000 square feet should be registered with the TNRERA. The Real Estate (Regulation and Development) Act, 2016, states that 70 per cent of the amount realised from buyers must be deposited in a separate escrow account, which would be released by the banks after completion of each stage of the construction.

TNRERA sources said that some projects come to a standstill at different stages largely due to insufficient funds. This leaves customers in trouble. The financial contingency plans will help to protect buyers’ interests as they will have roadmaps to raise funds through tie-ups with financial institutions.

According to data with ANAROCK property consultants, 8,650 apartment units worth Rs. 5,620 crore launched before 2013 are yet to be handed over to buyers in Chennai.

The Confederation of Real Estate Developers’ Association of India (CREDAI) has welcomed the move. Its Chennai chapter president W S Habib said, “After the implementation of the real estate Act, fly-by-night developers have almost disappeared. The new development will be an extra cover for protecting homebuyers investments,” he added.

Source:https://realty.economictimes.indiatimes.com/news/industry/builders-must-provide-financial-plans-of-projects-to-tamil-nadu-rera/70081576

Chennai

Homebuyers can now be doubly cautious and steer clear of dubious developers soon as the Tamil Nadu Real Estate Regulatory Authority (TNRERA) will list the complaints filed against developers on its portal.

Buyers can make use of the information made public. So far, only the final orders of the authority over issues with housing projects were available on the TNRERA website. “Currently, we are uploading only the final orders of the complaints. Now, the feature providing details of complaints will be made available for the benefit of homebuyers,” an official from TNRERA told TOI.

TNRERA sources said the information would be added to the ‘complaints’ link on the homepage of the authority’s website.

“We are looking at introducing this feature in another 15 days or by June. The purpose is to make the portal transparent, such that the consumer gets details of complaints at the click of a button,” the official added.

Details such as name of the complainant, nature of the grievance, the developer’s name and the name of the housing project would be provided in the link. The prayer for which the complaint has been filed would also be provided. This would help prospective buyers to take a considered decision on whether to invest in the project.

The realty regulator has received about 750 complaints against 55 housing projects since its inception in June 2017. More than 90% of the housing projects against which complaints were filed were in and around Chennai. The authority has delivered final orders for 40 complaints in the past two years.

TNRERA came into existence after the state government notified the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017. As per the rules, registration of all ongoing housing projects with a minimum of eight units and new residential layouts, is mandatory. Till April, 980 housing projects and layouts have been registered with the TNRERA since its inception. Majority of these projects are in Chennai and its periphery, Kancheepuram and Tiruvallur districts.

Source – www.realty.economictimes.indiatimes.com/news/industry/tamil-nadu-rera-to-publish-plaints-against-builders/69277392

Chennai

After an inordinate delay, the state government has appointed K Gnanadesikan chairperson of the Tamil Nadu Real Estate Regulatory Authority (TNRERA). The state made the appointment more than a year after the regulatory body was set up.

Gnanadesikan will take over the duties from S Krishnan, secretary of the housing and urban development department, who was also serving as the interim chairperson of the regulatory body.

S Manohar, engineer-in-chief, buildings, public works department and V Jeyakumar, advocate have been appointed as its members. N Balasubramanian, retired district judge, as its judicial member and Leena Nair, retired IAS officer, as the administrative member of the tribunal.

TNRERA was set up in June 22, 2017 with an aim to protect the interest of home buyers. According to the Real Estate (Regulation and Development) Act, 2016, every state government must establish a real estate regulatory authority within one year from the date of the Act coming into force through a notification. The body must consist of a chairperson, and not less than two full-time members.

However, since its establishment no appointments were made in Tamil Nadu.

The state also defied an order of the Central Advisory Council, which monitors the implementation of RERA, directing authorities to appoint a permanent regulator by June 30. While the state has finally appointed a new chairperson, he is due to retire in April.

The chairperson of TNRERA is vested with powers to direct and discharge administrative functions and address and dispose grievances of homes buyers. The members of the authority can only assume office after the chairperson has.

Sources
1. www.realty.economictimes.indiatimes.com/news/regulatory/tamil-nadu-rera-chief-appointed-after-more-than-years-delay/67910824
2. www.newindianexpress.com/cities/chennai/2019/feb/09/k-gnanadesikan-new-chairman-of-real-estate-regulatory-authority-1936448.html

RERA Updates

The Government of Tamil Nadu, dated 29.11.2018 has ordered that Registration under RERA is a prerequisite for obtaining Completion Certificate in CMDA & DTCP Areas.

RERA Tamil Nadu

• The Tamil Nadu Government, Housing & Urban Development Department, dated 22.06.2017 has approved the Tamil Nadu Real Estate (Regulation & Development) Rules, 2017 to carry out the provisions of Real Estate (Regulation & Development) Act, 2016.
• The office of the Authority is functioning in Door No.1A, 1st Floor, Gandhi Irwin Bridge Road, Egmore, Chennai – 600008.
• Website Launched (www.tnrera.in)