Common Order, Appeal Nos. 71 to 73 of 2019
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands) issued the Common Order in Appeal Nos. 71 to 73 of 2019 on 23 September 2020, reviewing a developer's appeals against orders of the Tamil Nadu Real Estate Regulatory Authority concerning an unfinished redevelopment project in Anna Nagar, Chennai. The supplied text records the agreements, delay, financial dispute and competing claims, but ends before the Tribunal's final decision.
What the appeals concern
The Tamil Nadu Real Estate Appellate Tribunal considered appeals filed by Green Avenue Homes and Gardens, represented by its proprietor Dhinakaran. The appeals challenged the Tamil Nadu Real Estate Regulatory Authority's orders in C.Nos. 248, 249 and 250 of 2019 dated 19 September 2019.
The dispute concerns Plot No. 66, Z Block, 5th Avenue, Anna Nagar, Chennai 600 040. The original building contained six flats. Five owners agreed to redevelopment, while the developer purchased the sixth flat and became both a flat owner and the developer.
Development arrangement
The flat owners and developer entered into a development agreement on 16 April 2012. The arrangement included:
- Demolition of the existing building and construction of a new building at the developer's cost.
- Payment of Rs.8,00,000 to each participating owner.
- Monthly rent of Rs.20,000 for alternative accommodation.
- Completion within 10 months from receipt of the approved building plan and execution and registration of the relevant General Power of Attorney.
- Allocation of six flats measuring 935 square feet each to owners, with two additional fourth floor flats allotted to the developer.
- Provision of a lift, generator, stilt floor toilet, 18,000 litre sump and 10,000 litre overhead tank.
Delay and claims
The building plan approval was obtained on 20 December 2013. The existing building was demolished, but construction stopped after the stilt floor and columns up to the first floor. The developer attributed the delay to financial difficulties and proposed a new arrangement involving ten flats and additional amenities.
The flat owners sought project registration, renewal of Chennai Metropolitan Development Authority approval, completion and handover, and payment of rent arrears. They opposed a new agreement and stated that they were prepared to complete construction at the developer's cost.
Relevant agreement terms
The development agreement stated that:
- The developer represented that he had the expertise, infrastructure, financial ability and resources to complete the work on time.
- If the developer failed to complete construction for reasons attributable to him, the owners could terminate the agreement and finish the work at his cost.
- The owners had rights over the developer's allotted property to recover construction costs, with the developer personally responsible for any deficit.
- The agreement was not transferable or assignable and did not permit the developer to pledge, borrow against or mortgage the property.
- Any amendment required writing and signatures from both parties.
The supplied text ends during the Tribunal's consideration of the developer's financial crisis and does not contain the final result of the appeals.
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
Does this Common Order create a general rule for all redevelopment projects?
The supplied text deals with a specific dispute concerning Plot No. 66, Z Block, 5th Avenue, Anna Nagar, Chennai. It records the parties' particular development agreement and claims.
Could the developer change the redevelopment agreement without the flat owners agreeing?
The development agreement required every amendment, alteration, variation or modification to be in writing and signed by both parties.
What remedy did the agreement give the owners if construction was not completed?
The agreement allowed the owners to terminate it and complete construction under the approved plans at the developer's cost when the failure was attributable to the developer. It also provided recovery rights over property allotted to the developer and made him personally liable for any deficit.
Did the Tamil Nadu Real Estate Appellate Tribunal allow or dismiss the appeals?
The supplied source text ends before the Tribunal's final decision. It therefore does not show whether Appeal Nos. 71 to 73 of 2019 were allowed or dismissed.
