CHENNAI: The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has imposed a penalty of Rs 50,000 on Emerald Haven Development Limited for taking more than 10% of the apartment cost before registering the sale and construction agreements for its project in Anna Nagar.
In its October 13 order, the authority directed the promoter to register the agreements and execute the conveyance deed within 30 days.
The case arose from allegations by two homebuyers that the promoter had advertised the project as being situated in the “heart of Anna Nagar” and used PIN code 600040, associated with Anna Nagar, although the project was recorded as being in Padi, which has Pin code 600050.
They alleged that the misleading advertisement resulted in them paying a price higher than the prevailing market value in Padi, causing a loss of at least Rs 1.1 crore. They sought action under section 12 of the RERA Act for misleading advertisements.
The promoter denied deliberate misrepresentation, stating that the project was situated in Anna Nagar West Extension and fell under Pin code 600040. It contended that the discrepancy in the RERA registration certificate was a clerical error.
The company said it had approached the CMDA and the GCC to rectify the error. TNRERA accepted the promoter’s explanation and consequently found no violation of section 12.
However, the authority found that the sale and construction agreements, executed on July 17, 2025, remained unregistered, contrary to RERA Act section 13, which prohibits promoters from accepting more than 10% of an apartment’s cost without first entering into a written agreement for sale and registering it.
The buyers had paid Rs 1.72 crore of the total consideration of Rs 2.88 crore. TNRERA directed the promoter to register the agreements and complete the conveyance, besides paying the penalty.
