Case law, Tamil Nadu land law
Common Order, Appeal Nos. 51 to 53 of 2023
The Tamil Nadu Real Estate Appellate Tribunal, in the Common Order in Appeal Nos. 51 to 53 of 2023 delivered on 20 December 2023, dismissed appeals filed by the Army Welfare Housing Organization concerning its Dinesh Vihar residential project at Thazhambur village, Chengalpet District. The Tribunal upheld the Tamil Nadu Real Estate Regulatory Authority's direction to register the project because it was still an ongoing project, although structurally completed, and also dismissed Miscellaneous Application No. 236 of 2023.
What the Common Order decides
The Common Order in Appeal Nos. 51 to 53 of 2023 concerns the Dinesh Vihar residential project promoted by the Army Welfare Housing Organization at Thazhambur village, Chengalpet District. Three allottees had sought registration of the project under the Real Estate (Regulation and Development) Act, 2016.
The Tamil Nadu Real Estate Appellate Tribunal dismissed all three appeals and declined to interfere with the Tamil Nadu Real Estate Regulatory Authority's direction that the project be registered. The Tribunal also dismissed Miscellaneous Application No. 236 of 2023, which sought permission to submit two additional documents.
Why registration was required
The Army Welfare Housing Organization argued that Dinesh Vihar was structurally completed when the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017 came into force and therefore did not require registration.
The Tribunal found:
- The promoter did not intimate the concerned local planning authority within the prescribed 15 day period that the project was structurally completed, with the required professional certification and supporting photographs.
- The promoter gave a delayed intimation to the Mamallapuram Local Planning Authority on 10 August 2017.
- Evidence from four official witnesses showed that the project was structurally completed as on 22 June 2017, but was not fully completed.
- The swimming pool, podium and club house were not completed as on 22 June 2017.
- Final works were still taking place on 20 November 2018, and the Environmental Clearance Certificate had not been obtained at that time.
Based on the incomplete amenities and remaining work, the Tribunal treated Dinesh Vihar as an ongoing project liable for registration with the Tamil Nadu Real Estate Regulatory Authority.
Who is affected
The Common Order directly affects the Army Welfare Housing Organization as promoter and the three Dinesh Vihar allottees who filed the complaints. It is also relevant to promoters and buyers assessing whether a project outside the Chennai Metropolitan area was merely structurally completed or fully completed when the 2017 Rules came into force. Structural completion alone did not prevent registration where evidence showed that the project and its amenities remained incomplete.
Additional documents
The Tamil Nadu Real Estate Appellate Tribunal refused to receive a request letter concerning permission to register sale deeds and a statement about delivery of apartments. It found that both documents were unnecessary for deciding the appeals.
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Common questions
Does Dinesh Vihar have to be registered with the Tamil Nadu Real Estate Regulatory Authority?
Yes. The Tamil Nadu Real Estate Appellate Tribunal upheld the direction to register Dinesh Vihar because the evidence showed that it was an ongoing project and was not fully completed.
Why was structural completion not enough to avoid registration?
The Tribunal found that amenities including the swimming pool, podium and club house were incomplete as on 22 June 2017. Final works were also continuing on 20 November 2018, and the Environmental Clearance Certificate had not been obtained at that time.
Did the Tribunal accept the Army Welfare Housing Organization's additional documents?
No. Miscellaneous Application No. 236 of 2023 was dismissed because the request letter concerning sale deed registration and the apartment delivery statement were unnecessary for deciding the appeals.
Were the Army Welfare Housing Organization's appeals successful?
No. The Tamil Nadu Real Estate Appellate Tribunal dismissed Appeal Nos. 51 to 53 of 2023 and declined to interfere with the registration direction issued by the Tamil Nadu Real Estate Regulatory Authority.
