Accepting promoter’s version alone not sufficient: Tribunal

Setting aside an order issued by the Tamil Nadu Real Estate Regulatory Authority (TNRERA), Tamil Nadu Real Estate Appellate Tribunal (TNREAT) accepted an appeal of a homebuyers’ association against a builder who retained ownership of common amenities.

“The relief sought by the appellant are all related with the real estate project regarding the delivery of physical possession of Block H and its amenities and other common area are all subject to adjudication. Retaining Block H and other common areas amounts to the project of the respondent still it is an ongoing project. Both factually and legally, the regulatory authority has not discussed and come to a conclusion, and mere accepting the version of the promoter alone is not sufficient. Hence, this tribunal comes to a conclusion that the complaint of the appellant is maintainable,” TNREAT said in its order.

Inseli Park Owners’ Association had filed a complaint against Jain Housing and Construction Ltd and its partner Sandeep Mehta with TNRERA. Members of the association had entered into an agreement with the builder to purchase apartments at Jains Inseli Park Project at Padur village, which consists of 808 apartments along with common amenities and facilities in eight blocks from A to H.

“No flats were delivered until 2014 and the ownership of amenities in H block are unlawfully retained by the promoter. The undivided share in the common areas have not been fully conveyed to the purchasers,” the association said in their complaint.

But the promoter claimed that the project was completed and handed over possession before the commencement of the Act. Based on this, TNRERA dismissed the complaint observing that it was not possible to take over the possession of the apartments without completion of the project.

When the association approached with an appeal, TNREAT observed that signatures were not obtained from the allotees. Without allotees’ signature for the receipt of possession, the certificate could not be construed as a valid one, it said.

“The appellant (homebuyers) came forward with the complaint for the relief of compensation, direction to deliver physical possession of Block H and its amenities, common areas and for related reliefs. The above said reliefs can be granted or not has to be analysed only after letting in evidence by both sides,” the Tribunal added while allowing the appeal.

The regulatory authority has not discussed and come to a conclusion. Hence, the complaint of the appellant is maintainable, TNREAT said