Appeal No.31 of 2023
The Tamil Nadu Real Estate Appellate Tribunal, in Appeal No.31 of 2023 delivered on 20 September 2023, partly allowed an appeal by M/s Rammiyam Homes concerning parking, water seepage, project registration and penalties at Rammiyam Skanda Villa in Velacherry, Chennai. The Tribunal held that the project was exempt from registration and set aside the Rs.1,00,000 penalty for non-registration, while leaving the parking, defect rectification and Rs.50,000 penalty findings unchanged.
What the case concerns
Appeal No.31 of 2023 before the Tamil Nadu Real Estate Appellate Tribunal concerns Rammiyam Skanda Villa, a residential project at Velacherry, Chennai. M/s Rammiyam Homes appealed against an order dated 30 December 2022 passed by a Single Member of the Tamil Nadu Real Estate Regulatory Authority on a complaint by an allottee of a ground floor apartment.
The project comprises eight apartments on land measuring 3,811 square feet, or 354 square metres. The approved plan provided for four car parking spaces and eight two-wheeler parking spaces. The promoter instead provided eight car parking spaces and no two-wheeler parking spaces.
Findings on parking and construction defects
The Tamil Nadu Real Estate Appellate Tribunal found that photographs showed congestion caused by cars and two-wheelers being parked together. This affected access to the ground floor apartments.
The Tribunal upheld the following directions:
- Four car parking spaces must be allotted to four allottees according to seniority based on the dates of their construction agreements.
- Car parking charges actually collected from the remaining four allottees must be refunded.
- The promoter may allot eight two-wheeler parking spaces according to the same seniority basis.
- Construction defects causing water seepage must be rectified within 30 days.
Registration and penalties
The Tamil Nadu Real Estate Appellate Tribunal held that the project was exempt from registration because it involved only 354 square metres of land and eight apartments. It therefore set aside the Rs.1,00,000 penalty imposed for failure to register the project.
The Rs.1,00,000 already deposited by M/s Rammiyam Homes was ordered to be refunded with accrued interest.
The Tribunal upheld the separate Rs.50,000 penalty connected with the approved plan violation and false documents provided to allottees. The deposited amount, together with accrued interest, was directed to be remitted to the Government.
Who may be affected
Appeal No.31 of 2023 directly affects M/s Rammiyam Homes and the allottees of Rammiyam Skanda Villa. It is also relevant to buyers and promoters dealing with projects containing eight apartments, parking arrangements that differ from approved plans, or complaints about defects such as water seepage.
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Common questions
Did the Tribunal cancel every direction against the promoter?
No. The Tamil Nadu Real Estate Appellate Tribunal set aside only the Rs.1,00,000 non-registration penalty and left the other aspects of the earlier order unchanged.
How must the four car parking spaces be allotted?
They must be allotted to four allottees based on seniority determined by the dates of their construction agreements. The remaining four allottees must receive refunds of the car parking charges actually collected from them.
Why was the non-registration penalty removed?
The project covered 354 square metres and contained eight apartments. The Tribunal held that it was exempt from registration and therefore set aside the Rs.1,00,000 penalty.
Was the promoter still required to address the water seepage?
Yes. The direction requiring the promoter to rectify the construction defects causing water seepage within 30 days remained unchanged.
