In an order that protects homebuyers’ rights over the land of an incomplete housing project, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has restrained the registration department from facilitating any deed over the property.
The issue pertains to an apartment complex at Pudupakkam on Vandalur — Kelambakkam High Road on the outskirts of the city, for which two landlords gave Power of Attorney to a developer but withdrew it later over delay in completing construction.
The complaint filed by Padmalaya Apartments Buyers’ Association said ABC (India) International, a partnership firm, was the owner of the land parcel developed by Real Value Promoters Pvt. Ltd. According to the complainants, the landlords executed a deed of General Power of Attorney in favour of developer in 2011. The construction work did not reach 40% despite the homebuyers paying substantial money towards the project nor was the proportionate undivided share in the land conveyed to the buyers, the petitioners alleged.
Meanwhile, the partnership firm in 2019 issued a notice to the promoter intimating about the cancellation of Power of Attorney on various grounds including undue delay in construction. Terming the cancellation of Power of Attorney illegal, the homebuyers said they were also stakeholders of the property. “In view of the cancellation, there is ample chance of disposal of the property. If they are allowed to proceed further in this regard, it would cause grave, irreparable prejudice and hardship to homebuyers,” the complainants said.
In the order delivered by TNRERA on Thursday, the realty regulator restrained the partnership firm from selling, mortgaging, leasing or parting with the physical possession of the property. “Further, considering the urgency and plight of the homebuyers, the authority directs the concerned sub-registrar office not to register the property until further orders,” it added.
