In an order that allows promoters to tweak plans for upcoming phases in a real estate project to increase the number of dwelling units, Tamil Nadu Real Estate Regulatory Authority (TNRERA) has said that developers need to execute projects depending on market requirement.
The realty regulator also dismissed a complaint by a homebuyer, who owns an apartment in a block, objecting to the developer’s move to raise the number of units, modifying the initial planning permission.
The case pertains to a gated community project, ‘Viva City’, at Kannivakkam near Guduvanchery, developed by XS Real Properties Pvt Ltd. According to complainants J Sethu Ragu Raman and D Sathiyapriya, who purchased an apartment in the project, the gated community was advertised as a development comprising seven blocks with 352 units, with two and three BHK apartments ranging from 583 sqft to 1,084 sqft having various common amenities.
While 176 dwelling units were built as per the approved DTCP plan in 2013, the developer obtained a revised planning permission to increase the number of dwelling units to 571, a rise of 219 units or more than 50%, for the new project, ‘En Veedu’, on the same premises. Noting that the developer was duty bound to get the consent of the purchasers before modifying the plan, the complainant said it was illegal.
In response, the developer said due to recession and depressed market conditions, they could not proceed with the phased development as planned “originally”. With the Centre launching the PMAY scheme that facilitates subsidy on EMI on housing projects for first-time buyers in 2016, the developer, through a subsidiary, obtained a revised approval for two existing blocks and fresh approvals for upcoming phases from DTCP in October 2017. The size of the apartments was tweaked — measuring 60 square metres per dwelling unit — to make the buyers eligible under the PMAY scheme. The homebuyers gave their consent for changes in undeveloped portions, the developer said, adding that the revised plan was as per the rules and regulations of DTCP, which has been registered with TNRERA.
After hearing the arguments, TNRERA said the developer completed and handed over the apartments to the complainants three years ago. Stressing that real estate market conditions are dynamic and the builder has to construct apartments according to market needs, the order said the authority was unable to find fault with the developer’s decision to go in for larger number of smaller apartments taking advantage of the Centre’s scheme on affordable housing.
“Therefore, the complaint is devoid of merits and hence it is dismissed,” the order added.
