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Buyers with pending NCLT cases can still seek relief from TNRERA

G Saravanan, adjudicating officer of TNRERA, said there was no conflict between RERA Act and the Insolvency and Bankruptcy Code.

The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ruled that there is no bar on homebuyers approaching it for relief just because they have also registered cases with the National Company Law Tribunal (NCLT) or Consumer Disputes Redrsessal Forum against developers over the same dispute.

G Saravanan, adjudicating officer of TNRERA, said there was no conflict between RERA Act and the Insolvency and Bankruptcy Code.

“Homebuyers can pursue parallel proceedings against the builders under both the laws,” he said in an order on a complaint registered over an incomplete housing project at Kattankulathur in Kancheepuram district near Chennai.

The homebuyer S Sankar Raman had said Evocon Private Ltd failed to handover an apartment unit in the project, whose construction was halted in 2016.

The developer argued that a complaint has been filed in the NCLT by the complainant and the matter had been stayed by the Supreme Court. Hence, no claim can be sought before TNRERA.

Moreover, insolvency resolution process has been ordered. “Institution of suits and continuation of suits against the developer in any court of law, tribunal or other authorities are prohibited,” the developer’s counsel said.

However, the TNRERA adjudicating officer said the Supreme Court had stayed only the proceedings before NCLT. “Remedies under RERA to allottees were intended to be additional and not exclusive remedies,” Saravanan said citing the Supreme Court order.

In another order relating to a housing project promoted by Marg Properties Limited at Pondur in Sriperumbudur, the TNRERA said provisions of RERA Act allows any person to withdraw a complaints from the disputes redressal forum at district, state or national level and file an application with the adjudicating officer under the RERA Act.


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