case law

Appeal No.2/19

Appeal No.2/19, dated 19 June 2019, was issued by the Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Island) in a dispute between M/s. SPR & RG Construction Private Limited and Mrs. Subashini Thulasiram. It examines whether the Osian Chlorophyll project was subject to the Real Estate (Regulation and Development) framework and finds that prior environmental clearance was mandatory, but the supplied text does not contain the Tribunal's final decision on the appeal.

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

Appeal No.2/19, dated 19 June 2019, concerns a buyer who entered into a sale-cum-construction agreement with M/s. SPR & RG Construction Private Limited on 27 November 2012. The buyer alleged that possession was not delivered by the agreed date, that construction began without prior environmental clearance, and that the project should have been registered as an ongoing project under the Real Estate (Regulation and Development) framework.

The buyer sought withdrawal from the project, refund of the amount paid with interest at 24 per cent per year, a penalty, and inclusion of the developer in the list of defaulters.

Why the developer appealed

M/s. SPR & RG Construction Private Limited challenged the Adjudicating Officer's decision to number the complaint and direct registration of the project.

The developer argued that:

  • The project was completed on 3 May 2017.
  • An application for a completion certificate was filed with the Chennai Metropolitan Development Authority on 29 May 2017.
  • The application appeared as entry number 53 in the published list of completion certificate applications.
  • The completion certificate was granted on 6 September 2018.
  • The project was therefore not an ongoing project when the Tamil Nadu rules were notified on 22 June 2017.

Environmental clearance findings

The Tamil Nadu Real Estate Appellate Tribunal stated that prior environmental clearance was mandatory before construction work or land preparation began for projects covered by the cited environmental notification.

The environmental clearance issued on 27 June 2018 recorded that construction activities had already started without mandatory prior clearance. It also referred to an apology and commitment from the project proponent and action initiated over the violation. The Tribunal therefore answered the first issue by finding that environmental clearance was mandatory for the project.

Relevance to buyers and developers

Appeal No.2/19 is relevant to buyers and developers dealing with projects where a completion certificate application was filed before the Tamil Nadu real estate rules took effect, but environmental approval was obtained after construction began. The supplied text shows that filing an earlier completion certificate application and obtaining a later certificate were central to the jurisdiction dispute. However, the supplied extract ends during the Tribunal's discussion and does not show whether the appeal was ultimately allowed or dismissed.

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 decide that prior environmental clearance was required?

Yes. The Tamil Nadu Real Estate Appellate Tribunal found that prior environmental clearance was mandatory before construction began for the project.

Why did the developer say the buyer's complaint was not maintainable?

The developer said the project was completed and its completion certificate application was filed before the Tamil Nadu real estate rules were notified on 22 June 2017. It therefore argued that the project was not an ongoing project and was outside the Adjudicating Officer's jurisdiction.

What relief did the buyer seek?

The buyer sought withdrawal from the project, refund of the money paid with interest at 24 per cent per year, a penalty, and inclusion of the developer in the list of defaulters.

Was the developer's appeal allowed or dismissed?

The supplied text does not include the final operative decision. It ends while the Tamil Nadu Real Estate Appellate Tribunal is considering the environmental clearance violation and the ongoing-project issue.