The Tamil Nadu Real Estate Regulatory Authority (TNRERA) will handle the disputes of homebuyers of housing projects even if the project was constructed before RERA came into effect.
The Tamil Nadu Real Estate Regulatory Authority (TNRERA) ruled out an order where homebuyers of housing projects can redress their grievances to the regulatory authority even if the project was constructed before the real estate Act (RERA) came into force.
As per the order, “if the cause of action survives after coming into fore of the RERA, the regulatory authority gets jurisdiction over all the disputes pertaining to the real estate projects in the State.”
A complaint was raised to TNRERA against a developer of a housing project in Kundrathur. Complainants asserted that they had paid almost Rs 40 lakh for an apartment in the project, and the project was set to complete by November 2015. However, the developer extended the deadline to 2017 and invited the homebuyers for final inspection in 2018.
Homebuyers raised a complaint that there were defects in the apartments, which the developer never solved. Moreover, the developer was fruitless in giving possession of the flats, and the homebuyers sought a refund of the already paid amount. On the other hand, the developer denied the allegations and claimed that the desired project attained a completion certificate in 2016 and also mentioned that the complainers failed to comply with the payment schedule.
Upon hearing both sides of the story, TNRERA ordered the developer to return the complainers’ payments along with additional Rs 2 lakh as compensation.
