RERA fines Rs. 2 Lakh on Chennai Builder

Chennai RERA

Tamil Nadu Real Estate Regulatory Authority (TNRERA) levied its first penalty after it was constituted in the state on June 22, a city builder has been slammed a fine of 2 lakh rupees for not registering his two projects with the RERA.

“A penalty of Rs. 1 lakh each have been levied on the two projects because they were not registered under the RERA act,” said an official. TNRERA Rules, mandates that all the ongoing projects, which haven’t received completion certificate, have to be registered with RERA. However, around 450 ongoing projects were exempted from the RERA purview. Out of which, 266 projects are situated in Chennai Metropolitan Area and have applied for the completion certificate with Chennai Metropolitan Development Authority (CMDA), while the remaining 187 in rest of Tamil Nadu have filed application for completion certificate with directorate of town and country planning (DTCP) stating that they are structurally complete.

However, these 2 projects executed by the builder on East Coast Road near Kalpakkam & Pondur around Sriperumbudur in Kancheepuram district haven’t filed any application, according to sources. When TNRERA conducted an inquiry related to complaints made by homebuyers over delay in delivery of flats by the builder on Monday, authority asked the builder to register his projects with the RERA. “On Friday, inquiry proceedings were approved,” the official adding that the penalty has also be approved.

Meanwhile, RERA resources said that the homebuyers who have filed the complaints over delay in possession of the flats have sought refund. “The issue will be discussed in October first week,”. RERA source said that buyers have paid around 50-80% of total cost. Construction for 2 projects consisting of 1500 units started in 2010-11 and they should have been already delivered to the buyers by the year 2013 according to the schedule.

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