CHENNAI: The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has imposed a `10 lakh penalty on KG Foundations (P) Ltd for failing to register its KG Chandra Vista residential project in Semmancherry and selling apartments without mandatory RERA registration.
Passing the order on August 7, the authority invoked Section 59(1) of the Real Estate (Regulation and Development) Act, 2016, and directed the developer to register the project by August 21. The order followed a complaint filed by Saranya Jeyasundaram against KG Foundations and the KG Chandra Vista Owners Residents Association.
The project, located opposite Sathyabama University, had obtained planning permission from the Chennai Metropolitan Development Authority (CMDA) in March 2014. Though the developer obtained a completion certificate from CMDA on March 26, 2019, TNRERA held that the project was required to be registered under the RERA Act.
KG Foundations contended that the project had been structurally completed before the RERA Act came into force in May 2017.
Rejecting the contention, TNRERA noted that the completion certificate was issued only in March 2019, nearly two years after the RERA Act came into force. The authority also pointed out that the project exceeded the threshold of 500 sq m and eight dwelling units prescribed under Section 3(2) of the Act.
TNRERA observed that the promoter had failed to register the project despite selling apartments, thereby violating Section 3(1) of the Act. The complaint had also raised concerns over the collection and utilisation of a `40,000 corpus fund. TNRERA, however, said the corpus fund and accounts had been handed over to the residents’ association.
The authority consequently imposed the `10 lakh penalty and directed the developer to complete the RERA registration within the stipulated deadline.
