Appeal No.7 of 2024, M/s. Puravankara Projects Limited v. R. Ravichandran and others
The Tamil Nadu Real Estate Appellate Tribunal, in Appeal No.7 of 2024 delivered on 9 February 2024, dismissed an appeal by M/s. Puravankara Projects Limited and upheld the Tamil Nadu Real Estate Regulatory Authority's penalty of Rs. 15,00,000 for failing to register ten project blocks and comply with its earlier direction. The promoter must comply with the order dated 13 September 2023 in E.P.No.21 of 2023 in C.No.217 of 2021.
What the case concerns
Appeal No.7 of 2024 arose from a joint complaint by allottees against M/s. Puravankara Projects Limited concerning construction defects and assured amenities. The allottees are associated with Puravankara Windermere at Bhavani Amman Koil Street, Pallikaranai, Chennai.
The Tamil Nadu Real Estate Regulatory Authority issued directions on 10 June 2022 in C.No.217 of 2021. These included registering ten blocks, Block Nos.13 to 22, containing 896 dwelling units, and filing a compliance report on or before 30 September 2022.
Why the penalty was imposed
The allottees filed E.P.No.21 of 2023 to enforce the directions in C.No.217 of 2021. On 13 September 2023, the Tamil Nadu Real Estate Regulatory Authority imposed a penalty of Rs. 15,00,000 because the promoter had not registered the ten blocks as directed.
The Tamil Nadu Real Estate Regulatory Authority relied on Section 59(2) of the Real Estate (Regulation and Development) Act, 2016. The provision, as quoted by the Tribunal, applies where a promoter fails to comply with relevant orders, decisions or directions, or continues to violate Section 3.
What the Tribunal decided
The Tamil Nadu Real Estate Appellate Tribunal found that M/s. Puravankara Projects Limited had not appealed against the original order dated 10 June 2022 in C.No.217 of 2021. The Tribunal therefore treated that order as final.
The Tribunal made the following findings:
- The appeal challenged the enforcement order and the Rs. 15,00,000 penalty.
- The promoter had not complied with the direction to register Block Nos.13 to 22.
- The penalty for failing to register the project and comply with the earlier direction was just and proper.
- There was no illegality in the enforcement order dated 13 September 2023.
- Appeal No.7 of 2024 was dismissed for lack of merit.
Who is directly affected
Appeal No.7 of 2024 directly affects M/s. Puravankara Projects Limited and the 28 respondent allottees. The promoter remains required to comply with the Tamil Nadu Real Estate Regulatory Authority's enforcement order in E.P.No.21 of 2023 in C.No.217 of 2021.
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Common questions
Was the Rs. 15,00,000 penalty cancelled?
No. The Tamil Nadu Real Estate Appellate Tribunal upheld the penalty and dismissed Appeal No.7 of 2024.
Which project blocks must the promoter register?
The registration direction covers ten blocks, Block Nos.13 to 22, accommodating 896 dwelling units.
Why did the Tribunal treat the original registration direction as final?
M/s. Puravankara Projects Limited did not appeal against the Tamil Nadu Real Estate Regulatory Authority's order dated 10 June 2022 in C.No.217 of 2021. The Tribunal therefore held that the order had become final.
What must the promoter do after the appeal was dismissed?
The promoter must comply with the Tamil Nadu Real Estate Regulatory Authority's order dated 13 September 2023 in E.P.No.21 of 2023 in C.No.217 of 2021.
