Common Order, Appeal Nos. 13/2019 to 52/2019

What the appeals concern

The Tamil Nadu Real Estate Appellate Tribunal considered 40 appeals filed by S. Jayalakshmi, proprietrix of Lakshmi Builders, against 40 allottees. The allottees had separately sought project registration, possession of their flats, compensation for delay and costs.

The authority hearing the original complaints found them maintainable and directed the builder to register the project within two weeks. The builder challenged that decision before the Tribunal.

Arguments made by the builder

Lakshmi Builders argued that the Real Estate Regulation and Development Act 2016 did not apply because the appellant was only a contractor, not a promoter. The principal arguments were:

• Separate approvals and subdivisions were obtained for individual flat constructions.
• The construction involved 1,540 square feet and five houses, according to the appellant.
• There was no group development, common approval or common amenity.
• The appellant had not advertised, marketed, booked, sold or offered the property for sale after the Act commenced.
• The absence of a compound wall between buildings approved under separate plans did not make them one group development.
• The two week period for registration was said to be unworkable because the original order was served only after that period.

Allottees' position and agreement terms

The allottees argued that the appellant had advertised the construction of 250 flats, obtained approval for seven plots and obtained subdivision for 10,142 square metres. They also claimed that approvals were in the appellant's name and that money had been collected from 40 allottees.

The Tribunal examined agreements describing the appellant as a builder and promoter. The agreements provided for construction within 18 months and referred to car parking, common amenities, shared maintenance charges and consequences for failing to pay charges for common benefits.

Listed shared works included a common septic tank, water and sanitary pipelines, external lighting, staircase and corridor wiring, compound walls, gates, and a common borewell and pump for 20 blocks containing 80 flats.

Issue examined

The Tamil Nadu Real Estate Appellate Tribunal framed questions about whether the project attracted Section 3 of the Real Estate Regulation and Development Act 2016 and whether the appeals should be allowed. It also reproduced definitions of promoter and real estate project and began assessing whether the appellant fell within them. The supplied text ends before the Tribunal's final conclusions or directions are recorded.