Officials get rap for completion certificate

CHENNAI: The Madras High Court directed the State government to initiate appropriate action against Town and Country Planning officials for issuing completion certificates without even conducting any proper inspection. The court noted that even in common parlance, the word completion defines “substantial completion” as per a contract and not a mere structure without basic amenities.

Mere completion of the basic structure of a building was not enough to arrive at the conclusion that it was complete within the meaning of the provisions of the Real Estate Regulatory Authority (RERA) Act or under the Town and Country Planning Act, said Justice SM Subramaniam.

“In such circumstances, a builder/ developer may make an attempt to exploit or cheat the bona fide purchasers, who are all innocent purchasers,” he added, observing that a large number of exploitations and cheatings, including crimes, are reported across the country in real estate activities.

The court was hearing an appeal moved by SARE Shelters Project Pvt. Ltd, which contended that since it has already obtained completion certificate, the owners’ association cannot proceed against them under RERA Act.

Upholding the order of Tamil Nadu Real Estate Appellate Tribunal (TNREAT) that completion certificate issued was improper as the approach roads for the flats and villas at Tiruporur in Chengalpattu remain non-existent, Justice Subramaniam said, “the RERA Act is in place to regulate the activities of the builders/developer. Therefore, in all respects, the Act should be applied in its real spirit so as to protect the rights of the innocent bona fide purchasers from the developer/builders.” The developer of an on-going project cannot be allowed to escape from the stipulations put down by the Act, the judge said, pointing out the Act does not grant exclusion for an on-going or uncompleted project.