By Staff Reporter
In a significant ruling, the Tamil Nadu Real Estate Appellate Tribunal (TNREAT) has dismissed an appeal filed by M/s. Hiranandani Realtors Private Limited, the promoter of the “House of Hiranandani” township project in Egattur, Chennai. The appeal challenged specific directions issued by the Tamil Nadu Real Estate Regulatory Authority (TNRERA) in a complaint filed by the Hiranandani Amalfi Owners Association.
Contentious Issues: Corpus Fund, Project Documents, and Amenities
The dispute centered around several contentious issues, including the handing over of project documents, transfer of 70% of the corpus fund collected from allottees, provision of amenities like intercom facilities, and compliance with approved plans for car parking and access roads.
TNREAT Upholds TNRERA’s Directions
After careful consideration, the TNREAT upheld the directions issued by TNRERA in its order dated December 21, 2022. The Tribunal observed that the promoter was bound by the terms of the Construction Agreement to transfer 70% of the corpus fund to the Amalfi Owners Association after deducting eligible expenses.
Piecemeal Registration of Project Draws Criticism
The TNREAT criticized the promoter’s approach of registering individual residential towers as separate projects with TNRERA, instead of registering the entire township project as a single entity. The Tribunal noted that this was a clever attempt to circumvent the provisions of the Real Estate (Regulation and Development) Act, 2016.
Promoter’s Arguments Rejected
The TNREAT rejected the promoter’s arguments that the corpus fund refund did not pertain to individual towers and that the promoter had discretion in nominating the recipient of the remaining corpus fund. The Tribunal emphasized that the Construction Agreement clearly stipulated the transfer of 70% of the corpus fund to the Amalfi Owners Association.
Access to Project Documents and Compliance with Approved Plans
Regarding the handing over of project documents, the TNREAT ruled that the Amalfi Owners Association, having contributed to the corpus fund, was entitled to access documents pertaining to the entire township project. Additionally, the Tribunal upheld TNRERA’s directions to ensure compliance with approved plans for car parking and access roads.
Withdrawal of Deposited Amount and Dismissal of Appeal
Consequently, the Tamil Nadu Real Estate Appellate Tribunal dismissed the promoter’s appeal and allowed the Amalfi Owners Association to withdraw the entire amount deposited by the promoter under Section 43(5) of the Act, towards 70% of the corpus fund, along with accrued interest.
The ruling underscores the importance of adhering to the provisions of the Real Estate (Regulation and Development) Act and upholding the rights of allottees in real estate projects.
It is gladdening to know that statutory bodies are able to withstand the onslaught of coercion and virtual blackmail in various guises from powerful real estate syndicates. If this does not happen in the country there will be no protection to the common man whose major wish in life is to own a house. Congratulations to such upholders of the law. Further such serial defaulters of builders must be held liable for criminal fraud in addition to other civil punishments.