Builder told to refund Rs 40 lakh to homebuyer

Providing relief to homebuyers who had to pay rent for the house they are staying while also paying bank EMI for an apartment they purchased due to delay in completing the construction, Tamil Nadu Real Estate Regulatory Authority (TNRERA) directed the builder to refund Rs 40 lakh.

The complainants, SK Akhilandeswari and P Vebhin Chander, had booked an apartment in Temple Waves, a residential complex built by Amar Prakaash Developers Pvt Ltd at Kundrathur. The total consideration of the apartment is Rs 37.88 lakh. In November 2015, the homebuyers and the builder entered into an agreement, under which the flat was to be delivered on or before December 2016. Based on this, the respondents availed a bank loan and paid Rs 38.01 lakh till June 2019.

But after the builder delayed handing over the apartment, forcing them to pay rent as well as EMI, the complainants approached TNRERA. But the builder contended that the apartment booked by the homebuyers was a part of a completed project and was thus exempted from registration with TNRERA. Also, the homebuyers delayed payment and were liable to pay delay interest charges of Rs 2.31 lakh, the builder claimed. The apartment was fully completed and the same was duly informed to the complainants, the builder added, and agreed to handover the possession provided they paid the delay interest charges. After the hearing, adjudicating officer G Saravanan observed that the homebuyers had almost paid the total sale consideration but the builder had not given any notice of possession of the flat at any point in time. The homebuyers are entitled to Rs 2 lakh compensation towards loss and hardship caused by the builder, he added.