Appeal No. 66 of 2021, M/s. Dawning Developers LLP and another v L. Suresh Kumar
The Tamil Nadu Real Estate Appellate Tribunal, Chennai, in Appeal No. 66 of 2021 dated 2 September 2022, considered a challenge by M/s. Dawning Developers LLP and M/s. Casagrand Builders Private Limited to a penalty imposed by RERA, Chennai, for misleading online project information. The Tribunal found that a prospective buyer could file the complaint and that the developers had misrepresented project locations and used two RERA registration numbers while advertising four projects, but the supplied text does not include the final disposal of the appeal.
What the case concerns
Appeal No. 66 of 2021 before the Tamil Nadu Real Estate Appellate Tribunal, Chennai, concerns online advertisements for Casagrand housing projects. M/s. Dawning Developers LLP and M/s. Casagrand Builders Private Limited appealed against the RERA, Chennai, order in C.No. 76 of 2020 dated 10 March 2021.
RERA, Chennai, had imposed a penalty of Rs.10,00,000 for misrepresentation and publication of incorrect and misleading particulars on the developers' websites.
Who is affected
The Tribunal's findings are relevant to:
- Prospective buyers who rely on developers' websites to check project locations and RERA registration details.
- Promoters and builders publishing project advertisements online.
- Buyers comparing an advertised address, survey details or registration number with information available on the TNRERA website.
The complainant was not an allottee. He was looking to buy property around Ambattur and discovered the discrepancies while checking the developers' websites. The Tribunal held that he was not a stranger to the matter and could be treated as an aggrieved person entitled to complain.
Key findings
The Tamil Nadu Real Estate Appellate Tribunal recorded the following findings:
- Casagrand Crescendo was advertised as being at Nolambur, while the TNRERA information placed it at Bye Pass Road, Athipattu, Chennai.
- Another website advertised an Ambattur project using the same registration number given for Casagrand Crescendo.
- Casagrand Zenith was advertised with a Medavakkam address, while its registration information placed it at Vengaivasal Village, Tambaram Taluk, Kancheepuram District.
- A Perumbakkam project was advertised using the same registration number as Casagrand Zenith.
- Survey numbers published for Casagrand Crescendo did not match the planning permission details available through the TNRERA website.
- The developers had advertised four projects using the two registration numbers issued for Casagrand Crescendo and Casagrand Zenith.
The Tribunal treated these differences as factual misrepresentation capable of misleading prospective buyers. The supplied source ends during the Tribunal's reasoning and does not show whether the appeal was finally allowed, dismissed or otherwise disposed of.
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Common questions
Can a prospective buyer complain even if they have not booked a flat?
Yes. The Tribunal held that the prospective buyer in this case could be treated as an aggrieved person because he found misleading information while researching a property purchase.
What penalty had RERA, Chennai, imposed on the developers?
RERA, Chennai, imposed a penalty of Rs.10,00,000 for misrepresentation and for publishing incorrect and misleading particulars on the websites.
What was wrong with the project registration information?
The Tribunal found differences between advertised locations and TNRERA records. It also found that two registration numbers issued for Casagrand Crescendo and Casagrand Zenith were used while advertising four projects.
Did the Tamil Nadu Real Estate Appellate Tribunal dismiss the appeal?
The supplied text does not include the final operative part of the decision, so it does not show whether the appeal was allowed, dismissed or otherwise disposed of.
