TNREAT Orders Hiranandani Realtors To Register The Entire Township Project Under RERA As One Unit

Background Fact

The appellant is the promoter of the township project named House of Hiranandani. Phase I of the real estate project consisted of six residential towers, which have been completed. Phase II of the real estate project consists of seven residential towers, out of which one tower is named Amalfi Tower.

The construction on the Township Project began in 2012, before the implementation of RERA 2016, which categorizes the project as an ongoing project since construction is still in progress.

However, rather than registering the entire township project as one unit under RERA, the appellant has only registered three towers of Phase II (Amalfi, Anchorage and Tiana) under RERA.

The respondents are the association of the allottees of the Amalfi Tower. The Respondent Association filed a complaint before the TNRERA regarding issues related to documents, corpus fund, generator, civil repair works, CCTV cameras, access to roads, car parking, etc.

TNRERA, in its order dated 21.12.22, directed the Promoter to provide pending documents to allottees, facilitate the transfer of corpus funds, address water seepage and structural defects as per Section 14(3) of the Act, ensure the provision of intercom/DID facilities, and comply with approved plans for internal road access.

The appellant filed an appeal before the Tribunal against the TNRERA order dated 21.12.22.

REAT Verdict

The Tribunal dismissed the appeal of the Promoter and upheld the TNRERA order dated 21.12.22.

The Tribunal ordered the appellant to register the entire Township Project, which includes many high-rise buildings, under RERA, not just only three towers of Phase II, as they are not separate and standalone projects from the entire Township Project.

The Tribunal held that the appellant is bound to return 70% of the Township corpus fund, as specified in Clause 2.8(1) of the agreement. This clause mandates the Promoter to transfer the residual amounts, after deducting any incurred expenses and without interest, to the Association of apartment owners upon formation.

Additionally, the tribunal held that the Appellant is entitled to retain the remaining 30% of the corpus fund until the completion of the entire project.

Regarding the issue of documents, the Tribunal held that the Appellant is bound to hand over all the documents pertaining to the entire project to the Respondent Association, as the Amalfi tower forms part of the entire Township project.

Furthermore, on the issues of civil repair work, CCTV, and car parking, the Tribunal upheld the order of TNRERA.

In Conclusion, TNREAT upheld the order of TNRERA dated 21.12.22 and orders the appellant to register the entire Township Project under RERA as one unit. Furthermore, tribunal also ordered the appellant to return 70% of the total corpus fund and all documents related to the township project to the allottees association.

Case: M/Hiranandani Realtors Private Limited vs Hiranandani Amalfi Owners Association.

Citation: Appeal No.37 of 2023

Counsel For Appellant: Mr. G.Vivekanand

Counsel For Respondent: Mr. S.R.Raghunathan for Ms. Vaishali.R