Tamil Nadu RERA Orders Builder To Fix Structural Defect And Register Project Under RERA

Background Facts

The homebuyer (Complainant) was allotted a flat costing Rs. 43,00,000/- in the builder's (Respondent no 2) apartment complex situated at Sevilimedu, Kancheepuram. According to the homebuyer, the flat was handed over in a semi-constructed state with substandard materials used in the construction.

The homebuyer further contended that the project was not registered under TNRERA, was sold without the required sanctions from TNRERA and the Town Planning Authority, and the flats were sold without a completion certificate.

Therefore, the homebuyer filed a complaint before the authority seeking a refund of the amount paid and a penalty for selling an unregistered project.

Observation and Direction by Authority

The authority held that since the project was ongoing, the builder's failure to register it under RERA violates Section 3 of the RERA Act, 2016. Therefore, the builder is liable under Section 59 of RERA, 2016.

The authority noted that since homebuyer has accepted the offer of possession and have taken possession of the flat on 06.03.2019, homebuyer cannot demand refund of the amount with interest under Section 18 of RERA,2016.

Further, authority referred to findings from an inspection committee, which was constituted upon the request of a homebuyer during a hearing to assess structural defects in the project. The committee, consisting of three professors from Anna University's Structural Engineering Department, noted deviations from the sanctioned plan and identified structural defects in the construction quality.

Therefore, Authority directed builder to fix the structural defects in the project and register the project under Section 3 of RERA, 2016. Additionally, authority directed builder to pay Rs. 1,00,000/- as penalty for selling flats without registration.

Case – Dr. S. Mohanasundaram & another Versus Deputy Director, DTCP and S.R. Shanmugam

Citation - RCP No. 35 of 2022