Builder liable for defects even beyond conveyance deed: tribunal

The Tamil Nadu Real Estate Appellate Tribunal (TNREAT) has ruled that the responsibility of the builder towards structural defect or any other defect shall continue beyond the conveyance deed of all flats.

Sare Squires Association, comprising 268 members who purchased flats in Sare Shelters Projects Pvt. Ltd on OMR Road, had approached the Tamil Nadu Real Estate Regulatory Authority (TNRERA) stating that common areas, facilities and other amenities were yet to be completed. The buyers said they were given possession between March 2012 and November 2014.

TNRERA had rejected the plea on the grounds that the complaint was not maintainable as the flats were handed over before the RERA Act came into force.

In their petition before TNREAT, the home buyers pointed out that there was no permanent source of water supply in the apartment complex as the builder had not drilled borewells or dug open wells. The builder also had not made alternative arrangements to lay a pipeline from the Thiruporur town panchyat.

TNREAT said as per the provisions of the Act, the builder could not simply wash off hands after the execution of conveyance deed and was liable to rectify the defect.

It ruled that the complaints of home buyers were maintainable. The builder had not acted in a transparent manner, said the authority and ruled that it had ample power to set right any structural defects brought to its notice. The tribunal set aside the TNRERA order.