Chennai builder fined Rs 2 lakh by RERA
In the first penalty to be levied by the Tamil Nadu Real Estate Regulatory Authority (TNRERA) after it was constituted in the state on June 22, a city developer has been slapped with a fine of Rs. 2 lakh for failing to register two projects with the realty regulator.
“We have levied a penalty of Rs. 1 lakh each on the two projects because they have not been registered under the real estate act,” an official said. The Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, mandates that ongoing projects, which have not received completion certificates, should be registered with the real estate authority. However, 450 ongoing projects across the state were exempted from the purview of RERA. Of these, 266 situated in the Chennai Metropolitan Area have applied for completion certificate with the Chennai Metropolitan Development Authority (CMDA), while 187 in the rest of Tamil Nadu have filed applications with the directorate of town and country planning (DTCP) stating that they are structurally complete.
However, the two projects executed by the developer on East Coast Road near Kalpakkam and Pondur around Sriperumbudur in Kancheepuram district have not filed any such applications, sources said. When an inquiry relating to complaints by homebuyers over failure to deliver apartments by the developer was conducted by the TNRERA on Monday, the authority directed the promoter to register the projects with the realty regulator. “On Friday, the proceedings of the inquiry were approved,” the official said, adding that the penalty amount was also approved.
Meanwhile, RERA sources said the homebuyers who filed complaints over delay in handing over the apartments have sought a refund. “The issue will be discussed in the first week of October,” an official added. RERA sources said that the buyers have paid anywhere between 50-80% of the total cost. Construction for the two projects comprising a total of 1500 units had started in 2010-11 and they should have been delivered to the homebuyers by 2013 as per the schedule, added the official, citing the complaints.