Tamil Nad

Canara Bank Officers Union directed to pay compensation for delay in delivery of flats

The Tamil Nadu Real Estate Regulatory Authority (TNRERA), Chennai has directed the Canara Bank Officers Union to pay a compensation of ₹1 lakh each, to two home buyers, and also refund the amount paid along with interest for non-delivery of flats.

In their petition, K. Usha and Dr. P. Venkatram said they had booked flats with the Canara Bank Officers Union’s project, ‘Grand Hills Apartments/CBOU Enclave’, Madukkarai Village in Coimbatore district and paid an advance amount as well as further amounts. Ms. Usha said she had paid ₹14.5 lakh out of the agreed price of about ₹30.40 lakh for the flat and Dr. Venkatram had paid about ₹13.9 lakh out of the agreed price of about ₹29.4 lakh and the construction agreements were entered into in November 2015. The Union had agreed to deliver the flats within 24 months from the date of agreement.

The complainants said that to date, the flats were not handed over and they had availed of bank loans for the purchase of the flats. They sought a refund and compensation.

TNRERA directed the Canara Bank Officers Union to refund the money with interest of 10.05 % per annum from the date of the respective payments to the date of repayment along with the compensation. In addition, it also awarded litigation expenses of ₹25,000 each. The charge of the said amount as encumbrance shall be on the flats booked by the complainants, till the repayment, as per the order, it said.

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