CHENNAI: The Tamil Nadu Real Estate Appellate Tribunal (TNREAT) has reduced the penalty imposed on the Tamil Nadu Housing Board (TNHB) for partial non-compliance with an order of the Tamil Nadu Real Estate Regulatory Authority (TNRERA) from Rs 1 lakh to Rs 30,000, observing that the higher penalty was excessive as the board was running at a loss.
The order was passed by the tribunal on August 24 while disposing of an appeal filed by the TNHB against TNRERA’s May 8 order.
The tribunal noted that the housing board had deposited Rs 30,000 as a pre-deposit under Section 43(5) of the Real Estate (Regulation and Development) Act, 2016, while filing the appeal, and held that the amount would suffice as penalty.
The case stems from a complaint filed in 2022 by P Malathi over an HIG flat allotted to her by the housing board. TNRERA had directed the board to provide the amenities promised in its advertisements and pamphlets, execute the sale deed for the undivided share of land and register the project under Section 3 of the RERA Act.
Finding that the board had only partially complied with its directions, TNRERA imposed a penalty of Rs 1 lakh and directed it to register the project by June 30, 2026.
Challenging the order, the TNHB contended that the direction to provide water treatment equipment to every flat was erroneous, as Malathi was the only allottee to have sought the facility.
Accepting the contention, the tribunal noted that the project comprised 133 flats and set aside the direction requiring the housing board to provide the equipment in all the flats.
However, it directed the board to provide the water treatment equipment to Malathi, along with the other promised amenities, by September 30.