A.No. 103/2021, M/s. Akshaya Pvt. Ltd. v. P. Anandasundaresan
The Tamil Nadu Real Estate Appellate Tribunal issued its order in A.No. 103/2021, M/s. Akshaya Private Limited v. P. Anandasundaresan, dated 7 March 2022, concerning a promoter's appeal against compensation awarded to a home buyer in the Akshaya January project. The Tribunal concluded that a completion certificate issued by the competent authority before the Real Estate (Regulation and Development) Act, 2016 came into force was sufficient to claim exemption from project registration, and that an occupancy certificate was not required for that exemption.
What the case concerns
The Tamil Nadu Real Estate Appellate Tribunal considered A.No. 103/2021, dated 7 March 2022, filed by M/s. Akshaya Private Limited against home buyer P. Anandasundaresan. The appeal challenged an Adjudicating Officer's order dated 30 March 2021 awarding delay compensation with interest, compensation for mental agony and litigation costs.
The home buyer had booked an apartment in the Akshaya January project at Thaiyur B Village, Chengelpet Taluk, Kanchipuram District. The parties entered into a memorandum of agreement on 30 July 2011 for a constructed flat priced at Rs.46,38,000. Possession was delivered on 14 February 2018.
Main issue considered
The Tamil Nadu Real Estate Appellate Tribunal examined whether the home buyer's complaint was maintainable under the Real Estate (Regulation and Development) Act, 2016. The promoter relied on a completion certificate issued by Thaiyur Panchayat on 26 February 2014 and argued that the project was not an ongoing project requiring registration.
The home buyer argued that:
- The apartment was not handed over until 2018.
- The completion certificate was false or insufficient.
- No occupancy certificate had been obtained.
- An email dated 13 November 2017 indicated that the apartment would be ready only by the end of December 2017.
Tribunal's findings
The Tamil Nadu Real Estate Appellate Tribunal distinguished between completion and occupancy certificates:
- A completion certificate confirms that a project was developed according to the sanctioned plan, layout and approved specifications.
- An occupancy certificate permits occupation of a building with civic infrastructure such as water, sanitation and electricity.
- A project does not require registration where the promoter received its completion certificate before the Real Estate (Regulation and Development) Act, 2016 commenced.
- The registration exemption provision refers to a completion certificate, not an occupancy certificate.
The Tribunal relied on the completion certificate issued by Thaiyur Panchayat and referred to its earlier decision concerning the same Akshaya January project. It concluded that a completion certificate from the competent authority was sufficient to claim exemption from registration. The supplied text ends after this finding and does not include the final operative direction disposing of the appeal.
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Common questions
Does a project need an occupancy certificate to claim exemption from RERA registration?
According to the Tamil Nadu Real Estate Appellate Tribunal in A.No. 103/2021, the exemption considered in this case required a completion certificate issued before the Act commenced. The relevant provision did not require an occupancy certificate.
Why did the promoter say the Akshaya January project was exempt from registration?
M/s. Akshaya Private Limited relied on a completion certificate issued by Thaiyur Panchayat on 26 February 2014. The promoter argued that this showed the project was completed before the Real Estate (Regulation and Development) Act, 2016 commenced.
Did the late handover of the apartment make the project an ongoing project?
The home buyer relied on possession being delivered on 14 February 2018. The Tribunal nevertheless treated the earlier completion certificate as the relevant document for deciding the claimed registration exemption.
Did the Tribunal finally allow the promoter's appeal?
The supplied text concludes that the completion certificate was sufficient for claiming exemption from registration. It does not include the final operative direction stating whether the appeal was formally allowed or dismissed.
