Buyers to get ₹52 lakh refund, compensation for unfinished flat

TNRERA ORDER ON UNREGISTERED PROJ

Buyers to get ₹52 lakh refund, compensation for unfinished flat

Yogesh.Kabirdoss@timesgroup.com

Chennai: 31.08.2020

Coming to the rescue of two homebuyers who had booked an apartment in an unregistered housing project, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has directed the project developer to refund the customer’s payment with interest.

The case pertains to a project titled “Aurum Pride Tower” at Padur, on the outskirts of Chennai, which the TNRERA order states is not registered. It is developed by Pacifica (Chennai) Infrastructure Co. Pvt. Ltd.

In a recent order, TNRERA adjudicating officer G Saravanan said documents furnished by homebuyers proved that the developer failed to complete the construction of the booked flat and handover its possession as promised. Therefore, the complainants (homebuyers) are entitled to get back the payment made with interest and compensation, it added. The developer concerned has been directed to refund the payment of ₹52.2 lakh to the complainants with an interest of 10% per annum till the repayment is made. Besides, the homebuyers have also been awarded compensation of ₹2.2 lakh towards mental agony and litigation expenses.

The order is significant as it gives homebuyers who invested in such unregistered housing projects an opportunity to seek relief from the state’s realty regulator. Such projects, which commenced before the implementation of RERA Act, could not deliver apartments and also failed to register with the TNRERA, after the Tamil Nadu government notified rules for real estate Act in June 2017.

The complainants said they had paid ₹52.2 lakh of the ₹53.9 lakh owed for booking the flat. After a sale agreement was entered between the homebuyer and builder in 2013, the developer executed a sale deed assuring to handover the flat in 2015. But, the construction was not completed and the (apartment) unit has not been handed over till date, the order added.

Despite attempts, Pacifica (Chennai) Infrastructure Co. Pvt. Ltd. did not respond to TOI queries for reaction.

The developer, in 2019, informed the homebuyers that construction of the block in which a unit was booked can’t be completed and urged them to shift the booking to another block. The complainants sought to cancel the booking and sought a refund of the amount paid.