Case law, Tamil Nadu land law
Appeal No. 17 of 2023 and M.A. Nos. 61 and 62 of 2023
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, delivered its decision in Appeal No. 17 of 2023 and M.A. Nos. 61 and 62 of 2023 on 27 September 2023. The Tribunal dismissed M/s. Bahri Estates Private Limited's appeal and upheld TNRERA's direction to register the Bahri Beautiful Country project in Theni District as an ongoing real estate project.
What the case concerned
Appeal No. 17 of 2023 concerned Bahri Beautiful Country, a real estate project at Genguvarpatti Village in Theni District. M/s. Bahri Estates Private Limited challenged the TNRERA decision in C.No.7/2022 dated 2 March 2023, which directed the promoter to register the project.
The promoter argued that Bahri Beautiful Country was only a layout project approved in 2009. It also relied on the gifting of Open Space Reservation land, roads and common areas to the local body in 2009 and 2010, and claimed that registration with TNRERA was not required.
Why the Tribunal treated it as a villa project
Appeal No. 17 of 2023 records that Bahri Beautiful Country had 298 plots and was launched with three components, Anandham Senior Citizen Community, Hill View Villas, and a common amenities and recreation zone. The Tribunal found that:
- The promoter advertised several types of villas in its brochure.
- Plot applicants were asked to select the type of villa they preferred.
- More than 170 villas had been built by the promoter under construction agreements with plot buyers.
- The project was therefore a villa project, not merely a plotted layout.
Promised amenities and ongoing status
Appeal No. 17 of 2023 also considered the promised clubhouse measuring 40,000 square feet, swimming pool, health club and golf course. The Tribunal recorded that these amenities had not been provided. It also referred to a Joint Committee report submitted to the National Green Tribunal in December 2020, which showed that the promised amenities had not been provided by that time.
The Tribunal consequently treated Bahri Beautiful Country as an ongoing project as on 1 May 2017 and held that it was required to be registered with TNRERA.
Embedded project and result
Appeal No. 17 of 2023 found that Santhosam Retirement Community, proposed on merged plot numbers 295, 296 and 297, was embedded within Bahri Beautiful Country. The promoter had obtained approval for 49 residential buildings and registered that development with TNRERA in 2018.
The Tamil Nadu Real Estate Appellate Tribunal dismissed the promoter's appeal at the admission stage and closed the connected miscellaneous applications. Buyers and allottees in Bahri Beautiful Country are affected because the direction requiring registration of the larger project remains in place.
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Common questions
Does Bahri Beautiful Country have to be registered with TNRERA?
Yes. The Tamil Nadu Real Estate Appellate Tribunal upheld TNRERA's direction requiring the promoter to register Bahri Beautiful Country.
Why was Bahri Beautiful Country not treated as only a plotted layout?
The promoter advertised villa designs, asked applicants to select villa types and had constructed more than 170 villas under construction agreements. The Tribunal therefore found that it was a villa project.
Did the Tribunal find that the promised common amenities had been completed?
No. The Tribunal recorded that the promised clubhouse, swimming pool, health club and golf course had not been provided.
What did the Tribunal decide about Santhosam Retirement Community?
The Tribunal found that Santhosam Retirement Community, developed on three merged plots within Bahri Beautiful Country, was an embedded project within the larger development.
