case law

Appeal No.1 of 2019

The Tamil Nadu Real Estate Appellate Tribunal issued its order in Appeal No.1 of 2019 on 20 March 2019, finding that the Army Welfare Housing Organisation's Raman Vihar project in Coimbatore was an ongoing project that required registration under the Real Estate Regulation and Development Act, 2016. The Tribunal found the registration direction valid because the project was incomplete, the claimed exemption had been rejected, and that rejection had not been challenged.

Category
Tribunal and court orders
Effective
1 January 2019
Pages
12
Status
In force
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What the case concerns

Appeal No.1 of 2019 arose from complaints by four retired defence personnel concerning the Raman Vihar project of the Army Welfare Housing Organisation at Chinnavedampatti, Coimbatore. The complaints sought registration of the project under the Real Estate Regulation and Development Act, 2016, so that the complainants could seek relief under that law.

The project approval covered 496 apartments. Construction had been taken up for 400 apartments, while work on the remaining 96 had not commenced. The complaints also stated that planned common facilities, including the clubhouse, swimming pool and toilets, were incomplete.

Decision under appeal

The Tamil Nadu Real Estate Regulatory Authority treated Raman Vihar as an ongoing project and directed the Army Welfare Housing Organisation to register it. The Authority relied on the absence of an exemption and on a Coimbatore Local Planning Authority inspection report dated 3 July 2018, which recorded incomplete or unstarted work.

Findings of the Tribunal

The Tamil Nadu Real Estate Appellate Tribunal found the registration direction valid for the following reasons:

  • The Army Welfare Housing Organisation admitted that completed homes were first handed over only in November 2018.
  • Its reply dated 10 March 2018 described 400 apartments as under construction and nearing completion.
  • The Coimbatore Local Planning Authority reported that construction had not started on five blocks and the filtration plant.
  • Work on the clubhouse, swimming pool and toilet blocks was still continuing.
  • The application for exemption under Rule 2(h)(iii) had been rejected, and the Army Welfare Housing Organisation had not challenged that rejection.
  • The available records did not support the claim that the project had been completed by 22 June 2017.

Who is affected

Appeal No.1 of 2019 directly concerns the Army Welfare Housing Organisation and the complainants in relation to Raman Vihar. It is also relevant to buyers and professionals assessing whether a project described as structurally complete can avoid registration when possession, buildings or approved common facilities remain incomplete. The Tribunal's reasoning treats actual project completion and habitable handover as important, rather than completion of slabs, beams and columns alone.

This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.

Common questions

Did the Tribunal treat Raman Vihar as a completed project?

No. The Tamil Nadu Real Estate Appellate Tribunal treated Raman Vihar as an ongoing project because apartments and approved facilities remained incomplete and possession began only in November 2018.

Was Raman Vihar required to register under the Real Estate Regulation and Development Act, 2016?

Yes. The Tribunal found the Tamil Nadu Real Estate Regulatory Authority's direction requiring registration to be valid.

Why did the claimed exemption not protect the Army Welfare Housing Organisation?

The exemption application under Rule 2(h)(iii) had been rejected, and the Army Welfare Housing Organisation had not challenged that rejection. The evidence also showed that the project was not complete.

Did completing the slabs, beams and columns make the project complete?

No. The Tribunal relied on incomplete buildings and facilities, as well as the later handover of homes, in finding that the project remained ongoing.