Tamil Nadu RERA Tribunal Directs House of Hiranandani to Register Entire Township as One Project

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In a significant ruling, the Tamil Nadu Real Estate Regulatory Authority (TN RERA) Appellate Tribunal has instructed developer House of Hiranandani to register its multi-tower township as a single real estate project. This decision comes after the developer attempted to circumvent RERA regulations by registering each tower separately.

The tribunal emphasized that the project, initiated in 2012 prior to the implementation of the RERA Act in 2016, remains incomplete. Therefore, it should have been registered as a single real estate project. Despite completing Phase 1, consisting of six towers, and ongoing construction in Phase 2 comprising seven towers, the developer registered only three towers in Phase 2 as separate projects.

Highlighting the developer's admission that one of the towers in Phase 2 forms part of the entire township project, the tribunal rejected the attempt to register it as a standalone project, citing concealment of facts. Consequently, the tribunal has directed the developer to refund 70% of the corpus fund, amounting to Rs 1.23 crore, collected from homebuyers in Phase 2 to the Resident Welfare Association (RWA). The remaining amount is to be retained until the entire township is complete.

This ruling underscores the tribunal's commitment to transparency and accountability in the real estate sector, preventing developers from exploiting loopholes in RERA regulations. It also aligns with the broader objective of ensuring fair practices and protecting the interests of homebuyers.

In a similar vein, Karnataka RERA had previously mandated multiple RWAs for a township containing several phases, emphasizing transparency in financial transactions and the provision of bank accounts for each association. Such measures aim to enhance accountability and safeguard the rights of homebuyers.

As the real estate sector continues to evolve, regulatory bodies like TN RERA play a crucial role in maintaining integrity and fostering trust among stakeholders. This ruling serves as a reminder of the importance of adhering to regulatory frameworks to promote transparency and uphold consumer rights in the real estate market.