Homebuyers are entitled to a full refund if a housing project does not adhere to the construction time schedule, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ruled.
It directed a developer to refund money to two customers for failing to complete construction within the stipulated time. The case pertains to a villa project on the outskirts of the city, where the two homebuyers booked a villa by paying 10% of the total unit cost as advance. They sought a refund later.
In a recent order that was made public on Thursday, TNRERA adjudicating officer G Saravanan said Rule 19(2) of the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, states that an allotee is entitled to a full refund at any time if the builder has not followed the time schedule. Noting that construction had not commenced on the land earmarked for the villa, the realty regulator asked the developer to repay the entire money with an interest of 7%. The repayment should be within 30 days from the date of receipt of this order, the adjudicating officer added.
The direction was regarding a villa project titled ‘Humming Garden’ at Thaiyur in Kelambakkam developed by Alliance Villa Pvt. Ltd. While the total cost of the villa was Rs 1.3 crore, the homebuyers paid Rs 16 lakh. Separate agreements for construction and sale of land were entered between the developer and the two customers on January 25, 2019. According to the complainants, a copy of agreement and title deeds were not furnished to them. On April 10, 2019, the homebuyers, sought cancellation of the booking and refund of their money. In response, the promoter informed them about deduction of 10% of the value of the villa.
The developer, however, denied all the allegations saying the charges were false. Pointing out that the complainants expressed their financial inability and sought refund, the promoter stressed that the developer is entitled to deduct 10% of the total value of the villa as per the terms of the agreement. Photocopies of the agreements were also furnished to the complainants. The developer added that homebuyers rushed to the TNRERA when the period for completion of the villa construction was October 2020, which was not yet over.
