No compensation if agreement doesn't provide for it: TNRERA

TNRERA Disallows Compensation for Delayed Project Delivery

TNRERA Ruling

Chennai: In a significant ruling, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has asserted that homebuyers are not entitled to compensation for delayed delivery if the agreement explicitly states otherwise.

Case Background

  • A homebuyer had entered into an agreement with a builder without a comprehensive construction contract.
  • The project's brochure specified that no interest or compensation would be paid in case of delays due to any reason.
  • Despite agreeing to these terms, the buyer later applied for compensation citing delayed possession.

TNRERA's Verdict

  • As per TNRERA's adjudicating officer, G. Saravanan, the buyer's claim for compensation lacks substance since they had initially accepted the terms.
  • This ruling underscores the importance of carefully reviewing agreements before signing.

Separate Case: No Compensation for Lack of Car Parking Facility

  • A housing project by the Indian Railway Welfare Organization in Chennai was completed in 2019, but without providing car parking facilities to all allottees.
  • A leading member of the organization, who was also an allottee, sought compensation for the lack of open parking and delayed delivery of the apartment.

Developer's Response and TNRERA's Decision

  • The developer attributed the delay to permits from local agencies, which were beyond their control.
  • It was also clarified that car parking was optional and subject to land availability; no charges were levied for parking spaces.
  • TNRERA, after hearing both parties, ruled that the allottee did not suffer any financial loss regarding car parking and thus, was not entitled to compensation for mental agony.

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