Appeal No.8 of 2024 and M.A.No.8 of 2024
The Tamil Nadu Real Estate Appellate Tribunal (Tamil Nadu, Puducherry, Andaman and Nicobar Islands), in Appeal No.8 of 2024 and M.A.No.8 of 2024 delivered on 21 February 2024, dismissed an appeal by M/s. S dot G Housing against a direction to register the S dot G Flora villa project. The Tribunal found that the appellants acted as promoters by advertising the project and its amenities, and that registering the land separately as a layout project did not amount to registration of the villa project.
What the case concerned
Appeal No.8 of 2024 concerned S dot G Flora at Veppampalayam, Erode District. An allottee complained to the Tamil Nadu Real Estate Regulatory Authority that M/s. S dot G Housing had promoted the project without registering it.
The appellants argued that the landowners had obtained approval for a layout, sold individual plots and later registered the layout with the Tamil Nadu Real Estate Regulatory Authority. They claimed that they were only constructing a villa for the allottee and were not promoters.
Findings of the Tribunal
The Tamil Nadu Real Estate Appellate Tribunal rejected the appellants' explanation. Its findings included:
- The S dot G Flora name appeared in the allottee's sale deed dated 3 March 2021 and in the building permission.
- The appellants published a brochure showing the layout, proposed buildings and amenities.
- Advertisements for the project appeared on social media, including Facebook.
- The promised amenities included a swimming pool, open air theatre, landscaped garden, children's play area, shuttle court, walking path, common septic tank, underground drainage and intercom phones with CCTV security.
- Publishing these materials and inviting people to purchase villas showed that the appellants were promoting the project, rather than merely constructing a standalone villa for one owner.
- The evidence established that S dot G Flora was a joint venture between the appellants and the landowners.
Registration requirement and result
The Tamil Nadu Real Estate Appellate Tribunal applied the Real Estate (Regulation and Development) Act, 2016, which treats a person acting as a builder, contractor or developer as a promoter. The Act prohibits a promoter from advertising, marketing, booking, selling or inviting purchases in a real estate project without registration with the Real Estate Regulatory Authority.
The landowners registered the development on 10 July 2023 as a layout project under reference No.TN/10/Layout/2437/2023. The Tribunal found that this was not registration of the villa project promoted as S dot G Flora.
The Tribunal therefore upheld the Tamil Nadu Real Estate Regulatory Authority's direction requiring the appellants to register the project. Appeal No.8 of 2024 was dismissed, and M.A.No.8 of 2024 was closed.
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Common questions
Can a builder avoid project registration by saying it only constructs villas for plot owners?
Not on the facts considered in Appeal No.8 of 2024. The Tribunal found that brochures, social media advertising, project branding and promised common amenities showed that M/s. S dot G Housing was promoting S dot G Flora, not merely constructing one standalone villa.
Was the existing layout registration enough for S dot G Flora?
No. The Tribunal found that reference No.TN/10/Layout/2437/2023 registered a layout project, not the villa project advertised as S dot G Flora.
What evidence showed that S dot G Flora was being promoted as a real estate project?
The Tribunal relied on the project name in the sale deed and building permission, the brochure describing villas and amenities, and advertisements published through social media.
What happened to the appeal filed by M/s. S dot G Housing?
The Tamil Nadu Real Estate Appellate Tribunal dismissed Appeal No.8 of 2024 and closed the connected M.A.No.8 of 2024. The direction to register the S dot G Flora project was upheld.
