Showing posts with label TNRERA. Show all posts
Showing posts with label TNRERA. Show all posts

Monday, December 16, 2019

Chennai: Can residential projects sold through lease deed come under the Real Estate Act?


The Tamil Nadu Real EstateRegulatory Authority (TNRERA) has entertained an application on a leased property, ordering the developer to pay back the homebuyer as the project reminds of a non-starter.

                           
The case concerns a project called 'UTSAV' contracted by New Chennai Township Private Limited at Vellore in Cheyyur Taluk of Kanchipuram district. In a recent order, G Saravanan, an assistant officer of TNRERA said, R Thenmozhi and S Sriram booked a flat and paid it in advance in February 2011. The developer had created a lease deed in support of the complainants to grant the lease for the flat. A period of 99 years which was to be made by the former.

While the total lease fee was Rs 16.69 lakh, the home buyers paid Rs 12.82 lakh. The possession of the flat was determined within 3 months from the date of receipt of the entire lease amount, as per the deed recorded in 2012 after one year. Although the flat's lease value was 80% of the total fee paid, the order stated that the developer neither started construction nor handed over possession of the apartment so far.

The complainants issued a notice for cancellation of the lease deed in 2016 and asked for refund of the entire amount including interest. However, the developer failed to repay the amount. The complainants have taken bank loans to make their payments, which have been allowed to provide relief.

As per the order, the complainants are entitled to refund Rs 12.82 lakh with interest at the rate of 10.15% for the amount paid by the developer from the date of payment till repayment. Rs. 1 lakh has been fixed as compensation for the mental anguish and inconvenience caused to the complainants by the developer". For registration and litigation expenses, Rs 16,790 and Rs 20,000 have been given respectively.

TNRERA ordered the developer to refund the amount, interest, compensation and costs within 60 days.