Appeal No. 34 of 2020
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman & Nicobar Islands), in Appeal No. 34 of 2020 dated 20 February 2020, permitted M/s. Phoenix Serene Spaces Private Limited to withdraw its appeal against a Rs.25,000 penalty imposed by the Tamil Nadu Real Estate Regulatory Authority. The appeal was dismissed as withdrawn after the company paid the full penalty, with no costs, and the connected miscellaneous petition was closed.
What the case concerned
Appeal No. 34 of 2020 arose from a penalty imposed on M/s. Phoenix Serene Spaces Private Limited by the Tamil Nadu Real Estate Regulatory Authority. The company had registered its project under Registration No. TN/01/Building/0163/2017 dated 2 November 2017.
The Tamil Nadu Real Estate Regulatory Authority required quarterly reports on the development progress of registered projects. According to the tribunal record, the company had not submitted its progress report as of 30 September 2019. The regulatory authority then directed the company by email to submit the report through a personal hearing, but the company neither appeared nor provided the report.
Penalty and appeal
The Tamil Nadu Real Estate Regulatory Authority treated the failure to follow its direction and comply with the applicable requirements as a violation. It imposed a penalty of Rs.25,000 and directed that the amount be paid within 30 days.
M/s. Phoenix Serene Spaces Private Limited challenged that penalty before the Tamil Nadu Real Estate Appellate Tribunal and also filed a waiver petition. The proceedings recorded the following:
- At the first hearing, the company requested an adjournment.
- At the second hearing, its counsel stated that the company was prepared to pay the full penalty within a week.
- The tribunal directed payment on or before 19 February 2020.
- On 20 February 2020, the company submitted an affidavit confirming payment of Rs.25,000 by demand draft.
- The company’s advocate endorsed withdrawal of the appeal.
Tribunal’s decision
The Tamil Nadu Real Estate Appellate Tribunal permitted M/s. Phoenix Serene Spaces Private Limited to withdraw Appeal No. 34 of 2020. The tribunal dismissed the appeal as withdrawn, made no order for costs and closed Miscellaneous Application No. 66 of 2020.
The Tamil Nadu Real Estate Regulatory Authority was not issued notice in the waiver proceedings because the challenged authority decision was described as administrative in nature under the Real Estate Regulation and Development Act 2016.
Who should note the decision
Registered project promoters should note that the case involved failure to submit a quarterly project progress report and failure to respond to a direction for personal hearing. The tribunal did not cancel or reduce the penalty because the promoter paid it and withdrew the appeal.
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Common questions
Was the Rs.25,000 penalty cancelled by the tribunal?
No. M/s. Phoenix Serene Spaces Private Limited paid the full Rs.25,000 by demand draft and then withdrew its appeal.
Why was the penalty imposed?
The Tamil Nadu Real Estate Regulatory Authority found that the promoter had not submitted the quarterly progress report as of 30 September 2019 and had neither attended the personal hearing nor provided the report when directed.
What happened to Appeal No. 34 of 2020?
The Tamil Nadu Real Estate Appellate Tribunal permitted withdrawal and dismissed the appeal as withdrawn. It ordered no costs and closed the connected miscellaneous petition.
Does the decision identify the registered project?
The decision gives the project registration as TN/01/Building/0163/2017 dated 2 November 2017, but does not state the project’s name.
