Case law, Tamil Nadu land law
Common Order, Appeal Nos.20 to 22, 58 and 59 of 2023
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, delivered the common order in Appeal Nos. 20 to 22, 58 and 59 of 2023 on 20 September 2023. The Tribunal directed the promoters of the Sobha Westhill project to provide four identified pending amenities by 31 December 2023, rejected the claim for interest on the corpus fund, and left existing TNRERA directions on project registration and maintenance undisturbed.
What the case concerns
The Common Order in Appeal Nos. 20 to 22, 58 and 59 of 2023 was delivered by the Tamil Nadu Real Estate Appellate Tribunal on 20 September 2023 under the Real Estate (Regulation and Development) Act, 2016. The appeals challenged reliefs disallowed by TNRERA in its common order dated 8 December 2022 in Complaint Nos. 27, 36, 40, 35 and 37 of 2022.
The appellants were purchasers of house sites with residential villas in the Sobha Westhill project, promoted by M/s. Sobha Limited and the other respondent companies. They claimed that the project was developed in three phases and that promised amenities had not been fully provided. The promoters described it as a layout project and stated that the allottees had formed an association registered with the Registrar of Societies, Coimbatore.
Directions on pending amenities
The Tamil Nadu Real Estate Appellate Tribunal noted that TNRERA had discussed the pending amenities but had not issued a finding or direction about them. The Tribunal directed the respondents to provide the following amenities by 31 December 2023, if they had not already been provided:
- Permanent electrical infrastructure, including a transformer and diesel generator set, for Phase III, Part C, which was recorded as only partially completed.
- Villa intercom connectivity with security.
- An association office.
- Shops shown in the approved plans.
Other claims considered
The Common Order in Appeal Nos. 20 to 22, 58 and 59 of 2023 records the following outcomes:
- A further claim concerning project registration was held not maintainable because TNRERA had already directed the respondents to register the project and fixed a deadline.
- TNRERA had already issued necessary directions concerning maintenance amounts.
- The claim for loss of interest on the corpus fund was rejected because the appellants had not provided details or an interest calculation.
- The Tribunal gave no finding on two requests made only in Appeal No. 21 of 2023, concerning defect rectification and restrictions on construction hours, because those requests had not been made in the original TNRERA complaint.
- For Appeal No. 59 of 2023, TNRERA had allowed the appellants to file a separate complaint before the Adjudicating Officer for compensation relating to repair works.
Who may be affected
The directions directly concern the appellants, the respondent promoters and the Sobha Westhill project. Buyers and owners in that project may be affected by the directions relating to common amenities, registration and maintenance.
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Common questions
What amenities did the Tribunal direct the Sobha Westhill promoters to complete?
The promoters were directed to provide permanent electrical infrastructure for Phase III, Part C, villa intercom connectivity with security, an association office and shops shown in the approved plans, if these had not already been provided.
What deadline was fixed for providing the pending amenities?
The Tamil Nadu Real Estate Appellate Tribunal directed that the identified pending amenities be provided on or before 31 December 2023.
Did the Tribunal award interest on the corpus fund?
No. The claim was rejected because the appellants did not provide supporting details or a statement calculating the interest.
Could the owners seek compensation for repair work mentioned in Appeal No. 59 of 2023?
The order records that TNRERA had given the appellants liberty to file a separate complaint before the Adjudicating Officer for compensation relating to repair works.