Appeal No.4 of 2024
The Tamil Nadu Real Estate Appellate Tribunal, in Appeal No.4 of 2024 delivered on 2 February 2024, found that a Chennai project containing eight apartments did not require registration under the Real Estate (Regulation and Development) Act, 2016, even though its land area exceeded 500 square metres. The tribunal applied the position that registration is not required when either the land area does not exceed 500 square metres or the number of apartments does not exceed eight.
What the appeal concerned
Appeal No.4 of 2024 arose from a proposed joint development at Secretariat Colony, Kilpauk, Chennai. The appellants owned 2,161 square feet of land, while the respondents owned the adjacent 4,318 square feet. Under a Joint Venture Agreement dated 29 March 2013, the respondents agreed to construct eight flats on the combined 6,479 square feet and provide the appellants with three apartments, each having 1,100 square feet of carpet area and a proportionate undivided common area.
The appellants alleged that construction was delayed and that the respondents failed to hand over the three apartments. They asked the Tamil Nadu Real Estate Regulatory Authority to require registration of the project, direct delivery of the apartments and award damages.
Registration finding
The Tamil Nadu Real Estate Appellate Tribunal examined the exemption from project registration under the Real Estate (Regulation and Development) Act, 2016. Its key findings were:
- Registration is not required where the proposed land area does not exceed 500 square metres or the proposed number of apartments does not exceed eight, including all phases.
- The two conditions operate separately. Satisfying either condition is enough for the registration exemption.
- The Kilpauk project covered about 600 square metres, which exceeded the land threshold.
- The project nevertheless contained only eight apartments. It therefore did not require registration.
The tribunal relied on the Madras High Court judgment dated 20 September 2023 in C.M.S.A.Nos.23 and 24 of 2020, which treated the word “or” between the two exemption conditions as disjunctive.
Effect on owners and buyers
Appeal No.4 of 2024 is relevant to owners, promoters and allottees dealing with projects containing no more than eight apartments. A project can qualify for the registration exemption based on apartment count even when its land area is more than 500 square metres.
The Madras High Court position applied in the proceedings was that the Tamil Nadu Real Estate Regulatory Authority and the appellate tribunal do not have jurisdiction over complaints concerning projects that do not require registration. The source identifies the competent Civil Court or Consumer Forum as the forums for allottee grievances in such cases.
Other points considered
The first respondent relied on an arbitration clause in the Joint Venture Agreement. The Tamil Nadu Real Estate Regulatory Authority did not consider that agreement because it had not been signed by the parties.
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Common questions
Does a project with exactly eight apartments require Tamil Nadu Real Estate Regulatory Authority registration?
Not under the reasoning in Appeal No.4 of 2024. The tribunal found that a project proposing no more than eight apartments does not require registration, even if its land area exceeds 500 square metres.
Must both the land area and apartment count be within the exemption limits?
No. The tribunal treated the conditions separately, so meeting either the land area condition or the apartment count condition is sufficient for exemption from registration.
Can an allottee complain to the Tamil Nadu Real Estate Regulatory Authority about an exempt project?
The Madras High Court position applied in the proceedings was that the regulatory authority and appellate tribunal lack jurisdiction over a project that does not require registration. The source states that the competent Civil Court or Consumer Forum may deal with allottee grievances.
Did the tribunal require the Kilpauk project to be registered?
No. Although the project covered about 600 square metres, it contained only eight apartments, so the tribunal found that registration was not required.
