The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has allowed flat owners to complete two delayed housing projects on their own and restrained the builders from proceeding with the work.
According to complaints filed by a slew of buyers, on November 15, 2012, a joint development agreement for construction of flats was entered into between Green Peace Constructions Pvt. Ltd. and four land owners for demolition of their flats and redevelopment.
As per the agreement, 16 flats were to be constructed on P.T. Rajan Salai, K.K. Nagar. Of the 16 flats, four landowners were supposed to get two flats each, and the remaining 8 were to be sold.
The flats were supposed to be completed with all amenities within 18 months of taking over possession of the land.
In addition to this, the flat owners stated that they had entered into a supplementary agreement with Green Peace on August 21, 2017, under which the builder undertook to hand over possession within 10 months from the date of agreement. The project was registered with TNRERA on January 25, 2018.
As the project was only 75% complete, they formed an association called ‘Block Ninety Flat Owners’ Association K.K. Nagar’ for taking over the construction activity, as per provisions of Section 8 of the Real Estate (Regulation and Development) Act, 2016.
The TNRERA noted that the builder had been facing financial difficulties since the inception of the project in 2012.
It also restrained the builder from proceeding further on the project.
In another case, 47 owners of the Tamil Nadu Housing Board apartments in Mogappair (West) entered into an agreement with J.D. Builders and Promoters Private Limited in 2010. The buildings were handed over in 2011 for redevelopment.
According to the complaint, the builder promised to construct the flats within 24 months, but it has been delayed for the past seven years.
The builder said there was an increase in CMDA fees, due to which he could not obtain approval and commence construction.
The TNRERA restrained J.D. Builders from proceeding with the project.
It directed the flat owners and subsequent buyers to form an association, register it, work out an equitable solution, select a builder and then take permission from the Authority to complete the project.
Article source: https://www.thehindu.com/news/cities/chennai/tnrera-allows-flat-owners-to-complete-two-delayed-projects/article29753310.ece