Appeal No.19 of 2024 and M.A.No.52 of 2024
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, delivered its order in Appeal Number 19 of 2024 and M.A. Number 52 of 2024 on 26 April 2024. It dismissed the Tamil Nadu Housing Board's appeal and application, finding that the Korattur LIG Self Finance Scheme was an ongoing project to which the Real Estate (Regulation and Development) Act, 2016 applied.
What the case was about
The Tamil Nadu Housing Board appealed against an order dated 12 April 2023 passed by a Single Member of the Tamil Nadu Real Estate Regulatory Authority. The buyer, Vijaya Bharathi L, had sought a refund of extra money paid for a flat, interest for delayed delivery and litigation costs.
The dispute concerned Flat Number L-45/12 in the Korattur LIG Self Finance Scheme. The tentative price was Rs.28,54,000. Possession was due on 30 September 2018 but was handed over on 21 May 2019. The Tamil Nadu Housing Board later fixed the final cost at Rs.31,73,000 and demanded the difference.
Decision under appeal
The Tamil Nadu Real Estate Regulatory Authority had directed the Tamil Nadu Housing Board to:
- Refund the additional amount of Rs.2,62,467.
- Pay interest for delayed delivery from 30 September 2018 to 21 May 2019.
- Pay Rs.25,000 towards litigation expenses.
Why the appeal was dismissed
The Tamil Nadu Housing Board argued that the Real Estate (Regulation and Development) Act, 2016 did not apply because it had applied for a Completion Certificate before the Act came into force.
The Tamil Nadu Real Estate Appellate Tribunal rejected that argument because:
- The Act came into force on 1 May 2016.
- Section 3 came into force on 1 May 2017.
- The Tamil Nadu Housing Board applied for the Completion Certificate only on 7 June 2017.
- The exemption under Rule 2(h)(ii) applied only where the Completion Certificate application had been submitted before Section 3 came into force and remained pending.
- The Korattur LIG Self Finance Scheme therefore had to be treated as an ongoing project.
Additional documents
The Tamil Nadu Housing Board also sought permission through M.A. Number 52 of 2024 to produce additional documents. The Tamil Nadu Real Estate Appellate Tribunal refused because the appeal could be decided without them and no acceptable reason was given for failing to produce them before the Tamil Nadu Real Estate Regulatory Authority.
The appeal and the application were both dismissed, leaving the directions for refund, delay interest and litigation expenses in place.
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Common questions
Does the buyer still receive the refund ordered by the Tamil Nadu Real Estate Regulatory Authority?
Yes. The Tamil Nadu Real Estate Appellate Tribunal dismissed the Tamil Nadu Housing Board's appeal, leaving the direction to refund Rs.2,62,467 in place.
Why was the Korattur project treated as an ongoing project?
The Tamil Nadu Housing Board applied for the Completion Certificate on 7 June 2017, after Section 3 came into force on 1 May 2017. The Tribunal therefore found that the exemption under Rule 2(h)(ii) did not apply.
Was interest awarded for the delay in handing over the flat?
Yes. Interest was awarded on the amount paid by the buyer for the period from the due date of possession, 30 September 2018, until possession was handed over on 21 May 2019.
Did the Tribunal allow the Tamil Nadu Housing Board to submit additional documents?
No. The Tribunal found that the documents were unnecessary to decide the appeal and that no acceptable reason was given for not producing them earlier.
