TNRERA, Real Estate News, ET RealEstate

CHENNAI: The Tamil Nadu Real Estate Regulatory Authority has directed a developer to repay two homebuyers and a bank due to delay in handing over an apartment. While the bank took over possession of the flat, the buyer approached TNRERA for delay in delivery, charging the developer and the bank were in collusion.

The complaint pertains to ‘BBCL Breeze Residences’ on Poonamallee High Road at Kilpauk developed by BBCL Developers (India) Pvt. Ltd., with HDFC granting loan to the buyers.

The buyers said they paid Rs 5.4 crore for the flat to be handed over by December 2018 with a 6-month grace period. Pointing out that construction was not completed in the agreed time, they said they were entitled to relief.

Terming the allegations false and noting there was a slight delay due to reasons including GST, demonetization, shortage of input material and Covid-triggered lockdowns, the developer said the buyers too delayed payment.

The banker charged that the buyers were loaned Rs 5.75 crore, but they defaulted in loan payment and it was classified a Non-Performing Asset and they were issued notice. The bank took symbolic possession of the property in December 2020, saying the amount due from the buyers was more than Rs 6 crore.

After hearing both sides, TNRERA adjudicating officer G Saravanan ruled that the buyers can’t be blamed for not adhering to the payment schedule when the project itself was delayed due to circumstances not in their control. “… it is held that the complainants are entitled to return of the amount paid to the developer with interest including compensation on ground of failure to complete the construction as per the construction agreements,” the order said.

The amount due to the complainants under this order is to be paid to the bank towards the satisfaction of the loan. The remaining amount is payable to the homebuyers, it added.

What do you think?

Presented by Realty Beat


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Bullet train in Noida and Greater Noida to boost property demand!, Real Estate News, ET RealEstate

Can't charge 20% interest on late rent from hotel, Chandigarh civic body told, Real Estate News, ET RealEstate

Can’t charge 20% interest on late rent from hotel, Chandigarh civic body told, Real Estate News, ET RealEstate