The Tamil Nadu Nadu Real Estate Regulatory Authority (TNRERA) has directed the State Bank of India Officers’ Association (SBIOACC), Chennai Circle, to register its housing project in Mambakkam under the RERA Act before December 31.
It has ruled that since the project has been promoted on a ‘no profit, no loss’ basis, the association has no right to retain any flats for their use for any purpose without collecting any sales consideration and any surplus in the project should be credited to the Association of allottees. Twelve allottees from the project named SBIOA Unity Enclave, Medavakkam Road, Mambakkam, had moved the authority stating that the possession of the apartment was handed over to them in an incomplete state.
The club house and commercial complex had not been completed and a permanent electricity connection had not been obtained even though the construction began in 2014. The TNRERA noted that the real estate project had not been completed as on May 2017 and it is an ongoing project which should be registered under the Act.
It also said the allottees were free to move the Adjudicating Officer of the TNRERA seeking compensation for the delay.
The Authority directed SBIOACC to complete all the common amenities in all respects and hand it over to the allottees before December 31. It also directed the association to convey the land earmarked for the Sports Academy, measuring 4.525 acres, commercial complex and club house and other parcels of land purchased with the sale consideration paid by the allottees to the SBIOACC Unity Enclave Owners Welfare Association (Association of Allottees) before the end of the year without fail to meet the shortfall in undivided share.
It also rejected the plea by the promoter of the project that the defect liability for the project is only valid up to August 2019 and cannot be extended. The TNRERA noted that as per the provisions of the RERA Act, the promoter is responsible for fixing any structural defects brought to his notice within five years from handing over the possession of the flat.
The authority also noted it was the responsibility of the promoter to obtain power connection for all amenities. The authority also ruled that M. Mohan, who was the chairman of housing committee of the project from August 2014, though superannuated, was jointly responsible for the execution of the project along with the SBIOACC and fulfil the obligations as per law.
The construction contract was signed between the chairman and the contractor on March 2015 during his tenure for a contract price of ₹547.88 crore, it noted.
