Faced with complaints from a developer and two independent homebuyers against each other, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has directed the opposing parties to pay the dues pending against them.
While the homebuyers demanded compensation for delay in handing over the units, the developer complained that dues collectively amounting to nearly Rs 45 lakh from the buyers were pending despite the flats being delivered. The realty regulator awarded compensation, besides slapping a penalty of Rs 8 lakh on the developer for causing mental agony to the homebuyers and directed them to pay the remaining payment to the developer with 9% interest.
The issue pertains to ‘The Metrozone’ developed by Ozone Projects Private Ltd. on Pilliyar Koil Street, Anna Nagar. The two homebuyers, in separate complaints, said there was a delay of about four years and charged that there were threats to disconnect power and water connections causing mental stress. The threats ceased only after a complaint was lodged with police and a RERA order was issued, they said.
The developer said compensation could be paid only in the event of the homebuyers fulfilling their obligations under the construction agreement the essence of which is making milestone payments. The two homebuyers collectively owed Rs 45 lakh, the developer said.
TNRERA adjudicating officer G Saravanan said that when the stage-wise progress of construction was not as per any time schedule to be adhered to provide the flat within the date fixed in the agreement, the builder cannot expect the complainant to make payment as per the demand notice.
“Where promises are reciprocal, each party has the option to perform his/her part of the contract but cannot insist on the other party performing his part without himself performing what was agreed,” the order added.
Noting that the homebuyers and developer were eligible to compensation and pending dues, it said they were at liberty to adjust the amounts due to them from the other party. The balance amount shall be paid by the respective party, it added.
