The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ruled that the provisions of the RERA Act are in addition to and not in derogation of other laws.
A.R. Ravisankar, a home buyer, filed a petition before the authority, stating that he booked a flat with Marg Properties Ltd.’s ‘Savithanjali’ project being developed at Kalavakkam village in Thiruporur panchayat limits.
On September 24, 2012, he entered into an agreement of sale and construction for about ₹44 lakh and paid ₹40.9 lakh. The builder agreed to deliver the completed flat by December 2013, with a grace period of three months, according to the petition.
The complainant said the builder had not yet delivered the flat and sought refund of the amount paid, along with interest and compensation.
In its response, Marg Properties said the petitioner had already filed a complaint before the State Consumer Commission and could not use a different forum seeking the same relief.
TNRERA pointed out that the Supreme Court had held that the remedies under the Consumer Protection Act and the RERA were concurrent remedies. Section 88 of the RERA Act made it clear that the application of the provisions of the Act were in addition to, and not in derogation of other laws.
Therefore, the complainant could maintain this complaint for relief under the RERA Act, even if the agreement contained arbitration clause, the TNRERA ruled and directed the builder to refund the amount paid by the buyer with interest of 10.05% a year.
It said the buyer was entitled to ₹69,700 towards the cost of the registration and ₹1 lakh compensation for hardship and mental agony, in addition to ₹20,000 towards litigation expenses.