Appeal No.54 of 2023
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman & Nicobar Islands), in Appeal No.54 of 2023 delivered on 3 November 2023, dismissed Vrikshaa Vassees Welfare Association's appeal against Dhanaas Property Developers. The Tribunal upheld the Tamil Nadu Real Estate Regulatory Authority's execution order, refused to cancel three plot sale deeds or prevent further registrations, and found that those remedies were beyond the scope of the Real Estate (Regulation and Development) Act, 2016.
What the case concerned
Appeal No.54 of 2023 concerned a project registered by Dhanaas Property Developers with the Tamil Nadu Real Estate Regulatory Authority as a layout project. Vrikshaa Vassees Welfare Association, representing the allottees, had previously obtained directions requiring the promoter to provide a swimming pool, gym, multipurpose hall, jogging track and children's play area.
The Tamil Nadu Real Estate Regulatory Authority also found that the development was a residential villa project rather than only a layout. It directed the promoter to obtain revised approval from the competent planning authority for the common amenities and apply for separate registration as a residential villa project.
Execution proceedings
Vrikshaa Vassees Welfare Association filed execution proceedings alleging that the promoter had not complied with the earlier directions. The Tamil Nadu Real Estate Regulatory Authority:
- Repeated its directions concerning the swimming pool, gym and multipurpose hall.
- Allowed time until 31 March 2023 to provide them, after obtaining the necessary approval for the swimming pool.
- Imposed a penalty of Rs.2,000 per day for non-compliance with other directions, subject to a cumulative maximum of Rs.5,00,000.
- Refused to set aside three sale transactions dated 12 January 2021, 12 February 2021 and 16 February 2021, finding that only plots in the approved layout had been sold and that no illegal sale had occurred.
Tribunal's decision
The Tamil Nadu Real Estate Appellate Tribunal dismissed the association's appeal. It found no reason to repeat the directions for revised approval and separate project registration because those directions had already been issued and confirmed in an earlier appeal.
The Tribunal also refused to direct the Singanallur Sub-Registrar Office, Coimbatore, to cancel the three sale deeds. It held that new directions of that kind could not be issued in an appeal arising from execution proceedings and were beyond the scope of the Real Estate (Regulation and Development) Act, 2016.
The request to stop the Singanallur Sub-Registrar Office from registering further sale deeds was rejected on the same basis. The Tribunal also declined to order transfer of land intended for a swimming pool and shuttle court because revised planning approval had not yet clearly earmarked those locations.
Who is affected
Appeal No.54 of 2023 directly affects Vrikshaa Vassees Welfare Association, Dhanaas Property Developers and purchasers connected with the project. The decision leaves the execution order, including the amenity directions and penalty, undisturbed, but does not cancel the identified sale deeds.
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Common questions
Did the Tribunal cancel the three sale deeds challenged by the residents' association?
No. The Tamil Nadu Real Estate Appellate Tribunal found that plots in the approved layout had been sold, that no illegal sale transaction had occurred, and that cancellation directions were beyond the scope of the Real Estate (Regulation and Development) Act, 2016.
Must the promoter still provide the promised common amenities?
The Tamil Nadu Real Estate Regulatory Authority's directions concerning the swimming pool, gym and multipurpose hall remain undisturbed. The promoter had also been directed to obtain revised planning approval and apply for separate registration as a residential villa project.
Was a penalty imposed on Dhanaas Property Developers?
Yes. The execution order imposed Rs.2,000 per day for non-compliance with other directions, subject to a cumulative maximum of Rs.5,00,000, and the promoter did not appeal against that penalty.
Did the Tribunal stop the Sub-Registrar from registering further sales in the project?
No. The request for a permanent injunction against the Singanallur Sub-Registrar Office, Coimbatore, was rejected as beyond the scope of the Real Estate (Regulation and Development) Act, 2016.
