Agreement not mandatory to file complaint in RERA

Ordering a promoter to refund the amount collected from a customer, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) held that the privity of contract or existence of any agreement was not mandatory to file a complaint before the forum.

“Under section 31 of the RERA Act, any aggrieved person can maintain a complaint before the Authority or Adjudicating Officer for any violation or contravention of the

Act or Rules and Regulations made against any promoter, allottee or real estate agent as the case may be. Privity of contract or existence of any agreement is not mandatory to file a complaint before this forum,” said Adjudicating Officer G Saravanan.

According to S Pradeep Kumar Sridharan, the buyer who filed a complaint with TNRERA against Manju Foundation (P) Ltd, he had booked a property in Kodaikanal through the company. It was agreed that the cost of the plot would be Rs 4 lakh and the cost of construction of an independent house on the plot would be Rs 19.25 lakh.

Though he paid Rs 11.14 lakh, the promoter evaded executing the agreements of sale and construction and did not start the work.

In response, the company not only denied the allegations, but also contended that the forum had no jurisdiction to entertain the complaint as there is no privity of contract between the complainant and the respondent for the construction of the independent house on the plot.

After hearing both sides, the adjudicating officer observed that Section 12 has made it clear that any person who makes advance or deposit on the basis of information provided by the promoter, sustains any loss or damage by reason of any incorrect or false statement, has to be compensated by the promoter. He also ordered the promoter to refund Rs 6.89 lakh with interest apart from paying compensation for mental agony.

Privity of contract or existence of any agreement is not mandatory to file a complaint before this forum G Saravanan,

Adjudicating Officer