Appeal No.55 of 2019
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, issued Appeal No.55 of 2019 dated 27 September 2019 in GMR Krishnagiri SIR Limited versus the Tamil Nadu Real Estate Regulatory Authority represented by its Chairman. The appeal challenges the Authority's opinion that an industrial plot development project in Krishnagiri must be registered under the Real Estate Regulation and Development Act 2016, but the supplied text does not include the Tribunal's final decision.
What the appeal concerns
Appeal No.55 of 2019 before the Tamil Nadu Real Estate Appellate Tribunal concerns a proposed multi-product Special Economic Zone and industrial development in Krishnagiri. GMR Krishnagiri SIR Limited planned the project as a joint venture with the Tamil Nadu Industrial Development Corporation Limited under a public private partnership model.
The developer asked the Tamil Nadu Real Estate Regulatory Authority whether the Real Estate Regulation and Development Act 2016 applied to the project. The Authority replied on 1 February 2019 that the project involved developing plots for industrial purposes and therefore had to be registered with the Tamil Nadu Real Estate Regulatory Authority.
Who may be affected
Appeal No.55 of 2019 is relevant to developers and professionals dealing with industrial plots, industrial estates, Special Economic Zones and similar projects in Tamil Nadu. It also concerns parties assessing whether the development and leasing of industrial land falls within real estate regulation.
The project described in the appeal included:
- Procuring and developing land.
- Planning, designing and constructing infrastructure.
- Marketing developed areas.
- Leasing industrial land and ready-built factories on a long-term basis.
- Operating and maintaining common facilities and infrastructure.
- Providing social and support infrastructure for industrial users.
Main arguments recorded
GMR Krishnagiri SIR Limited argued that the legislation applies to residential and commercial projects, but not industrial projects. Its counsel relied on the legislative history and argued that recommendations to include industrial projects were not adopted in the enacted definitions.
The developer also argued that:
- The project served a public purpose by supporting industrialisation, State revenue and employment.
- Industrial users had greater bargaining power than the consumers whom the legislation was intended to protect.
- Industrial projects lacked uniform specifications because requirements depended on individual industrial units.
- The Tamil Nadu Real Estate Regulatory Authority did not provide a hearing before giving its opinion.
What the supplied text establishes
The supplied extract records the project background, the Authority's registration opinion and the developer's arguments. Although it introduces an order of the Tamil Nadu Real Estate Appellate Tribunal, the extract does not provide the Tribunal's final findings or state whether the Authority's opinion was upheld or set aside.
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Common questions
Did the Tamil Nadu Real Estate Regulatory Authority require this industrial project to be registered?
Yes. The Authority stated in its reply dated 1 February 2019 that the project involved developing plots for industrial purposes and had to be registered with the Tamil Nadu Real Estate Regulatory Authority.
Why did GMR Krishnagiri SIR Limited file the appeal?
The developer argued that the Real Estate Regulation and Development Act 2016 did not apply to industrial projects and that it was not given an opportunity to present its case before the Authority gave its opinion.
Was the Krishnagiri project only a residential or commercial layout?
No. The supplied text describes it as a multi-product Special Economic Zone and specialised industrial area involving developed industrial land, ready-built factories and supporting infrastructure.
Did the Tribunal decide that industrial projects are exempt from registration?
The supplied text does not include the Tribunal's final findings or outcome. It therefore does not establish whether the registration requirement was upheld or set aside.
