Common Order, Appeal Nos. 8 and 9 of 2020
The Tamil Nadu Real Estate Appellate Tribunal issued the Common Order in Appeal Nos. 8 and 9 of 2020 on 8 December 2020 concerning complaints by Eden Park Phase II apartment allottees. The Tribunal found that structural completion alone did not make the apartments completed or habitable, and that the Tamil Nadu Real Estate Regulatory Authority exemption letter dated 1 December 2017 had no value for these apartments.
What the case concerns
The Tamil Nadu Real Estate Appellate Tribunal considered appeals by four Eden Park Phase II allottees against M/s. L & T South City Projects Private Limited, now known as M/s. Pragnya South City Projects Private Limited, and M/s. L & T Realty Limited. The appeals challenged the Tamil Nadu Real Estate Regulatory Authority's dismissal of two complaints as not maintainable.
The complaints sought project registration, execution of sale deeds, possession of the apartments and completion of amenities. They also sought protection of the corpus fund and a direction requiring the second respondent to indemnify the allottees.
Why the complaints were initially dismissed
The Tamil Nadu Real Estate Regulatory Authority relied on structural completion certification from the Directorate of Town and Country Planning and its letter dated 1 December 2017. That letter stated that blocks certified as structurally completed were exempt from registration.
The developers also argued that:
- The agreements were entered into during 2013.
- A completion certificate had been received before the relevant law commenced.
- The project therefore did not require registration.
Tribunal's findings
The Tamil Nadu Real Estate Appellate Tribunal distinguished structural completion from a completed and usable apartment. Its key findings were:
- The official project status recorded Towers A1, B1 and C1 as structurally completed, while other works remained in progress.
- The developer stated in an email dated 11 October 2018 that final finishing work was continuing and that the two apartments would be handed over in habitable condition by 30 November 2018.
- The apartments were therefore not habitable when the Tamil Nadu Real Estate Rules, 2017 came into force on 22 June 2017.
- Columns, beams, slabs and other structural work alone were insufficient. Completion had to include the work and amenities needed to make the property usable for residential purposes.
- The exemption letter dated 1 December 2017, based only on structural completion, had no value for deciding whether these apartments were completed.
Who may be affected
The reasoning directly concerns the Eden Park Phase II allottees and developers. It may also be relevant to allottees disputing a developer's claim that an unfinished or uninhabitable project was exempt merely because its structure had been completed.
The supplied extract ends while reproducing later court reasoning and does not include the final operative directions on the appeals or the individual reliefs requested.
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 structural completion alone make an apartment project complete?
No. The Tamil Nadu Real Estate Appellate Tribunal found that beams, slabs and structural work alone were insufficient when the apartments were not habitable and promised amenities remained incomplete.
Why did the Tribunal reject reliance on the exemption letter dated 1 December 2017?
The exemption letter relied on certification that the blocks were structurally completed. The Tribunal found that structural completion did not establish that the apartments were complete and usable for residential purposes.
What relief had the Eden Park Phase II allottees requested?
They requested project registration, execution of sale deeds, possession and completion of amenities. They also sought protection of the corpus fund and indemnification by the second respondent.
Did the supplied text state the final directions given to the developer?
No. The supplied extract does not reproduce the final operative directions or state which individual remedies were ultimately granted.
