RERA Orders Builder to Compensate Homebuyers for 40-Month Delay in Chennai
Chennai: In a significant decision, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ordered a construction company to compensate homebuyers for a delay of 40 months in handing over possession of a flat. The compensation is to be paid in the form of interest on the amount already paid by the buyers.
The case relates to a residential apartment project named Orchid Springs, developed by Alliance Projects in Korattur, Ambattur Taluk, Chennai. Two homebuyers, Ganeshar Rajamani and Aparna Rajagopalan, entered into an agreement with the builder on April 30, 2015, to purchase a flat and paid a total of ₹2.89 crore as the agreed price.
As per the agreement, the builder promised to deliver the flat by June 30, 2017. However, the project was not completed on time, and the buyers did not receive possession within the agreed period. Additionally, there were alterations in the flat’s design and structure after the agreement.
Frustrated by the long delay and lack of clarity, the buyers filed a complaint with the Tamil Nadu RERA. After reviewing the case, a bench headed by TNRERA Chairman Shivdas Meena found that the delay of 40 months was unjustified.
In its ruling, the Authority stated that the construction company must:
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Pay interest for 40 months on the paid amount as compensation.
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The interest is to be calculated at an annual rate of 9.50%.
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Additionally, the builder must pay ₹25,000 to the complainants towards legal expenses.
This ruling reinforces RERA’s commitment to protecting homebuyers and ensuring accountability among builders.
🏛️ What is RERA?
RERA stands for Real Estate Regulatory Authority, established under the Real Estate (Regulation and Development) Act, 2016. It was introduced to bring transparency, accountability, and discipline to the real estate sector in India.
🔍 Purpose of RERA:
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To protect homebuyers from fraudulent practices.
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To regulate builders and property agents.
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To ensure timely delivery of housing projects.
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To enforce disclosure of project details for public access.
🔐 Key Provisions:
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Builders must register all projects above a certain size with RERA.
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70% of funds collected from buyers must be kept in a separate bank account and used only for that project.
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Buyers are entitled to compensation for delays, false promises, or poor construction.
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Buyers can lodge complaints with RERA for violations.
Each state has its own RERA authority. For example:
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TNRERA – Tamil Nadu
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MahaRERA – Maharashtra
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UPRERA – Uttar Pradesh
📝 How Can a Flat Buyer File a Complaint with RERA?
If you are a buyer who has faced issues like project delays, non-delivery, or false promises, you can file a complaint under RERA. Here’s how:
✅ Step-by-Step Process:
1. Visit Your State’s RERA Website
Go to the official RERA portal of your state. For Tamil Nadu, visit https://www.tnrera.in.
2. Register as a Complainant
Create an account using your name, email ID, and mobile number. Verify via OTP.
3. Fill the Complaint Form
Include:
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Your personal and contact details
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Builder’s name and project details
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Flat/unit number
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Nature of complaint (e.g., delay, poor construction, etc.)
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Upload supporting documents (agreement, receipts, emails)
4. Pay the Complaint Fee
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Fee ranges from ₹1,000 to ₹5,000 (varies by state)
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Pay online via UPI, card, or net banking
5. Submit and Track
Submit the complaint and note the acknowledgment number. You can track the status online.
6. Attend Hearing (if needed)
RERA may summon you for a hearing. You can attend personally or through a legal representative.
📎 Required Documents:
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Sale agreement or builder-buyer agreement
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Proof of payments made (receipts or bank statements)
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Project brochure or advertisement
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Identity and address proof
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Any written communication with the builder
⚖️ What You Can Expect from RERA:
RERA may direct the builder to:
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Refund the money with interest
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Pay compensation for mental agony and delay
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Complete and hand over the project within a fixed timeframe
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Bear the litigation expenses
🧾 Conclusion:
The RERA Act is a powerful legal tool for homebuyers facing problems with builders. The recent Chennai order is a reminder that builders are accountable for their commitments. Buyers should not hesitate to approach RERA for justice when their rights are violated.