CHENNAI: The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ordered Marg Properties to pay compensation to home buyers along with interest for failing to hand over the flats on the due date.
TNRERA adjudicating officer G Saravanan, after hearing a batch of 21 petitions filed by buyers over delay in handing over the Marg Properties flats in their project ‘Marg Brindavan’ in Pondur village in Sriperumbudur taluk in Kanchipuram district, said the dates of delivery of flats were fixed with a grace period of four months and the contention of the respondent that delay was beyond their control, is not acceptable.
Rejecting the claim of cancellation charges and termination charges from the amount paid by buyers, TNRERA stated as per provisions of the Real Estate Regulatory Act, the respondent is liable to return the amount with interest and compensation and other charges.
Interestingly, TNRERA granted the registration certificate for project ‘Brindavan’ accepting the time of handing over the project by April 30, 2020. However, it clarified that the time limit in the certificate had nothing to do with the promised date of delivery of possession of the flat relating to allottee as per the bilateral agreement.
“The respondent can’t take shelter under clauses of contract which are much contradictory to the term of promised due date for delivery of the flats which prompted buyers to invest money in the project,” Saravanan observed.“In cases of construction of immovable properties, even if no time is specified in the contract for performance, the contract has to be performed within a reasonable time. Since the project is incomplete till date, the respondent can’t take any right or liberty to make or compel the buyer to wait for many years endlessly and escape from liability,” the adjudicating officer observed.
Stating that Marg Properties cannot shift the entire blame on buyers, Saravanan observed that the company, in pre-launch bookings, had collected advance money. It initiated the application for the building plan for the project in 2011 and got the sanction only on July 4, 2013. But it did not get environmental clearance and clearance from the Pollution Control Board for the project, which consisted of 1008 flats in the first phase.
“The respondent started booking of flats and collecting money from the beginning of year 2011 and subsequently till the project was stopped. As such he cannot now shift the blame to the buyers,” he added.
Ordering the compensation to be paid to the buyers, TNRERA also said that the respondent has to pay an interest of 8.70 per cent, which is currently the marginal cost of lending rate of interest of SBI plus 2 pc from the date of respective payments till repayment by the respondent. The compensation has to be paid within 30 days from the issue of the order.