Appeal No. 46 of 2020, M/s. Casa Grand Builder Private Limited v. Mrs. V. Sangeetha

What the case concerns

Appeal No. 46 of 2020 was filed by M/s. Casa Grand Builder Private Limited against an order of the Tamil Nadu Real Estate Regulatory Authority in C.No.436/2019 dated 27 February 2020. The Tamil Nadu Real Estate Appellate Tribunal heard the appeal and issued its order dated 15 September 2021.

The dispute concerns the Casa Grand Bloom residential project on 9.51 acres at Thirumudivakkam Village, Sri Perumbudur Taluk, Kanchipuram District. The allottee purchased plot No.18 and entered into a construction agreement for a villa on 29 October 2018.

Regulatory Authority directions

The Tamil Nadu Real Estate Regulatory Authority found that the promoter had violated the Real Estate Regulation and Development Act, 2016. Its directions included:

• A fine of Rs.40 lakhs against the promoter.
• Delivery of possession on or before 31 January 2020.
• Proportionate reduction of the land and construction costs.
• Permission for the allottee to approach the Adjudicating Officer of the Tamil Nadu Real Estate Regulatory Authority for delayed construction interest and compensation.

The promoter appealed only against the Rs.40 lakh fine. The other findings and directions were not challenged in the appeal.

Promoter's position

M/s. Casa Grand Builder Private Limited argued that the development consisted of approved individual plots with villas covered by individual building permissions. It claimed that registration as a group residential project was neither required nor technically feasible. The promoter also relied on the gifting of internal roads and park space to the local body and the issue of pattas in the names of individual villa owners.

The promoter further argued that villa construction was not uniform and could be altered according to individual allottees' preferences.

Allottee's position and issues considered

The allottee argued that the promoter sold both land and villas and provided common facilities for 180 villas. These facilities included a swimming pool, gym, cafeteria, games rooms, multipurpose hall, children's play area, golf simulator and audiovisual room. On that basis, the allottee maintained that the development was a group development building project.

The Tamil Nadu Real Estate Appellate Tribunal identified two main questions, whether the promoter's claim that Casa Grand Bloom was not a group development building project was sustainable, and whether the appeal should be allowed. The supplied text ends during the Tribunal's discussion and does not provide its final ruling.