Landowners can’t be punished in joint ventures: Tamil Nadu RERA
CHENNAI: There is a relief to the landowners who are part of joint venture housing projects in Tamil Nadu. The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has said that the owners are not a party to the case if undivided share (UDS) has been registered for homebuyers.
The state’s realty regulator further said that the ‘promoter’ is alone liable for the action against whom homebuyers can proceed for violation of the RERA Act.
According to the orders, a company registered under the Companies Act and represented by its managing director is a legal person who can sue and be sued. The complaint related to a housing project named Vardhana Constellation in Coimbatore being executed by Sree Vardhana Builders Pvt. Ltd.
Besides, that two separate complaints were filed by homebuyers against 12 persons including eight landowners as respondents, queries were raised whether the landlords were party to the complaint.
G Saravanan, TNRERA adjudicating officer said that the landowners of the project site have executed a general power of attorney to the developer. Hence the developer had executed the sale deed for UDS in favor of homebuyers and entered into a construction agreement for the delivery of apartments. “Only the first respondent (company) comes under the definition of the promoter under the RERA Act and can be proceeded and made liable by the homebuyer for any violation or contravention of the provisions of the Act,” the order said.
The real estate regulator stated that a previous order delivered last year cannot be applied in the present case. It’s a case of owners who had executed power of attorney to a third party and not in favour of the builder. Besides that, no sale deed for UDS was executed in favour of the homebuyer. “In this case, the developer has entered into a registered joint venture agreement with the landowners and power of attorney. According to the orders, the promoter also executed the sale deed for UDS in favor of the homebuyer.
