The Tamil Nadu Real Estate Regulatory Authority (TNRERA), Chennai, has directed a builder to pay ₹2 lakh compensation and refund about ₹45.51 lakh, paid by a home buyer, along with 10.15% interest per annum, for failing to hand over a villa.
In his compliant, Veluthakkal Jayakumar said he booked a villa in the project ‘Mahidhara Supreme’, developed by Mahidhara Projects Pvt. Ltd, and the total sale consideration was ₹45.51 lakh. The construction agreement was signed on August 5, 2014, and the developer undertook to hand over the completed villa by August 5, 2016, he said. But till date, the work was not completed, and the villa has not been handed over, the complaint said.
In its response, the developer had said that the project was only a plotting venture and not a housing one, and since the buyer insisted, it undertook the construction of the villa.
The developer claimed that the total cost of the villa, including construction cost, was ₹57.57 lakh, and the balance amount had not been paid by the buyer.
G. Saravanan, adjudicating officer, TNRERA, noted that as per the clause in the sales deed, the scheduled property should always be subject to the development scheme floated by M/s. Mahidhara Projects Private Ltd., and no liberty was given to the buyer to engage any other developer.
Therefore, the contention that the project was only a plotting venture and not a housing venture was not sustainable, he said.
TNRERA also noted that no document, such as a demand note, had been raised by the developer for the balance amount, as claimed.
It also fixed the cost of litigation at ₹20,000, and directed the developer to pay the compensation, the refund amount, along with interest and costs, to the buyer within 30 days of its order, dated December 6.