Appeal No. 44 of 2020

What the case concerns

Appeal No. 44 of 2020 before the Tamil Nadu Real Estate Appellate Tribunal concerns villas promoted by Dhanaas Property Developers and purchased by members of Vrikshaa Vassees Welfare Association. The association complained that the promoter had not provided advertised amenities or transferred the OSR site to the local body.

The Regulatory Authority directed the promoter to comply within a stipulated time. Dhanaas Property Developers appealed, arguing that it could add or delete brochure amenities and that there was no written agreement guaranteeing them.

Findings on the promoter

The Tamil Nadu Real Estate Appellate Tribunal treated Dhanaas Property Developers as a promoter or developer, even though the construction agreement described it as a builder or contractor. The Tribunal relied on the definition of promoter in the Real Estate Regulation and Development Act 2016, the developer's role as power agent for planning permission regularisation, and the construction agreement governing payments for the villas.

Findings on advertised amenities

The Tamil Nadu Real Estate Appellate Tribunal considered brochures that listed amenities and contained a note reserving a right to add or delete facilities, specifications or amenities when executing the sale agreement.

Key findings were:

• Buyers stated that they purchased the villas after considering the promised amenities.
• A brochure could not be treated as purely informational after being used to attract buyers.
• The brochure note did not remove the allottees' rights to amenities already agreed upon.
• Section 12 of the Real Estate Regulation and Development Act 2016 applies when a person pays an advance based on information in an advertisement or prospectus and suffers loss or damage because of an incorrect or false statement.
• The project was an ongoing project, so the Tribunal found that Section 12 applied.
• The promoter was not entitled to delete or refuse amenities specifically mentioned in the brochure.

The disputed amenities included a swimming pool, gym, multipurpose hall, jogging track, children's play area and private garden. The supplied text records the Tribunal's conclusion on the brochure issue, but ends while the Tribunal is considering whether the appeal should be allowed. It therefore does not provide the final result of the appeal or the final directions concerning every amenity and the OSR site.