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TNRERA Orders Dubious Builder To Refund Money To Buyers

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The builder, who failed to deliver the home on time, has been ordered to return Rs 28.33 lakh, an additional Rs 2.55 lakh, plus 10.15 percent as interest and Rs 25,000 to the hassled buyers 

THE Tamil Nadu Real Estate Regulatory Authority (RERA), the statutory body regulating real estate business, has directed a City-based builder to return Rs 28.33 lakh, a portion of the money collected for a Rs 48.47 lakh flat, with 9 percent towards compensation (Rs 2.55 lakh), plus 10.15 percent as interest, apart from another Rs 25,000, towards mental agony and litigation cost, for not delivering the flat in time.

RERA adjudicating officer G Saravanan gave the direction to the builder while passing orders on a petition from K Deepa, daughter of M Kumar, activist and writer in Saligramam, on September 17.

According to the petitioner, she had entered into an agreement with the builder for purchase of a flat in Thaiyur village in Kanchipuram district near Chennai, in June 2012. She made a total payment of Rs 28.33 lakh. As per the agreement, the builder was to hand over possession of the flat within 30 months plus a grace period of 90 days. Contending that till date, the builder did not complete the construction, she moved the RERA for refund of the money paid with interest, compensation and other costs. Rejecting the submission of the builder that the authority has no jurisdiction, the adjudicating officer pointed out that the project was an ongoing one, eligible for registration on the date of commencement of the Act in 2016. Therefore, he possesses the jurisdiction. 

Turning down the second contention that he has no power to order compensation and at the most, he can order the return of the money collected alone, the adjudicating officer held that the complainant is eligible for the amount, paid with interest and compensation, because of the failure on the part of the builder to deliver possession of the apartment to her in accordance with the terms and conditions of the agreement. In view of the rejection of the contentions of the builder, the petitioner is entitled for the refund of Rs 28.33 lakh with interest, at the rate of 10.15 percent with 9 percent compensation and another Rs 25,000 as mental agony and litigation cost, the officer said.

Source: New Indian Express

(Note: The story has been published without modifications to the text. Only the headline and intro have been changed.)

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