Appeal No.11 of 2024 and M.A.Nos. 10 & 11 of 2024

What the case concerns

Appeal No.11 of 2024 was filed by M/s. Alliance Projects, the promoter, against M/s. Palm Flat Owners Welfare Association. The promoter sought to set aside the Tamil Nadu Real Estate Regulatory Authority order dated 22 August 2022 in C.No.279 of 2021 and have the association's complaint dismissed.

The dispute concerns Palm Block, identified as Block No.6 in the eight-block Alliance Orchid Springs project. It covers the corpus fund, maintenance transfer, common amenities, project documents, electricity records and the formation of an apex or federation association.

Directions challenged by the promoter

The Tamil Nadu Real Estate Regulatory Authority had directed the promoter to:

• Hand over Palm Block's proportionate corpus fund with the actual interest earned.
• Transfer maintenance of block-specific common areas to the relevant block associations.
• Enable formation and registration of an apex or federation association for all eight block associations, and transfer maintenance of project-wide common areas to it.
• Provide the common amenities listed in Schedule D of the construction agreement, if not already provided.
• Give the apex association original title deeds, approved plans, structural designs, architectural drawings, plumbing drawings and electrical drawings.
• Give each block association relevant wiring and plumbing drawings, lift licences, and available manuals, annual maintenance contracts and warranties for lifts and diesel generator sets.
• Obtain transfer of domestic electricity service consumer cards to individual allottees, if not already completed.
• Act under Section 14(3) of the Real Estate (Regulation and Development) Act, 2016 in relation to the sewage treatment plant, water treatment plant and drainage systems.

Pre-deposit and interest issue

M/s. Alliance Projects deposited Rs.2,03,23,500, described as the corpus fund collected, but did not initially deposit interest. The promoter stated that the money had been kept in its current account, used for block maintenance and had not earned interest.

The Tamil Nadu Real Estate Appellate Tribunal directed calculation of pre-deposit interest at 5.5% per year on the corpus fund. The promoter challenged that direction before the Madras High Court. On 16 November 2023, the High Court stated that the issues required detailed examination of evidence and documents and left the substantial questions of law open for the Appellate Tribunal to decide.

Practical significance

Palm Block owners and their association are directly affected because the case concerns control of maintenance, corpus money, amenities and key property records. The supplied text does not show whether the Appellate Tribunal ultimately confirmed, changed or set aside the regulatory authority's directions.