Tamil Nadu RERA Directs Tamil Nadu Housing Board To Execute Sale Deed And Handover Possession To Homebuyer

The case involved a homebuyer who had made full payments for a flat but faced delays and unresolved issues regarding the handover of the property.

Background Facts

Homebuyer (Complainant) was allotted Flat in the SAF Games Village Scheme, Koyambedu, Chennai, through an allotment letter dated 01.11.2021. The total price of the flat was Rs.1,71,07,100/- and an initial booking amount of Rs.5,00,000/- was paid on the same day.

As per the payment plan the homebuyer paid the first major installment of Rs.1,57,51,745/- (which included interest) on 20.11.2021. The remaining amount was to be paid at the time of possession.

The builder (Respondent) had promised to hand over the flat by January 2022 but failed to do so. Instead in July 2022, the builder demanded Rs.10,96,300/- as interest for delayed payment without providing proper details. Despite repeated objections the builder did not offer a clear explanation and shared vague calculations.

On 04.08.2022, the flat was unofficially handed over without any formal handover letter, after an 8-month delay. Later, the builder asked the homebuyer to pay the remaining 5% of the flat cost and maintenance charges. The homebuyer made the full payment by December 2022.

However, the builder neither executed the sale agreement nor registered the undivided share of land. The homebuyer also claimed that the builder raised unjustified demands for interest and maintenance charges without officially handing over the flat.

Being aggrieved, the homebuyer filed a complaint before the authority seeking a direction to the builder to execute the sale agreement, officially hand over the flat with keys, pay interest for the delay in possession and pay an additional Rs.50,000/- towards litigation expenses.

Observation and Direction by Authority

Authority found that the homebuyer had mostly followed the payment schedule, including paying the first instalment before the due date and clearing the full flat cost by December 2022. Although he delayed paying maintenance and corpus charges, this did not justify withholding possession.

Authority also observed that the builder failed to hand over the flat by the promised date of January 2022 and continued to delay even after receiving the full payment, which clearly showed delay on the builder's part.

Authority observed that the homebuyer is entitled to the registration of the sale deed and the Undivided Share (UDS) in his favor. The builder failed to hand over the flat officially despite receiving the full payment and did not execute the required sale agreement, violating provisions under the Real Estate (Regulation and Development) Act, 2016.

Authority referred to the Supreme Court's ruling in Haris Marine Products vs. Export Credit Guarantee Corporation (ECGC) Limited, which emphasizes interpreting ambiguous terms in favor of the beneficiary. Since the allotment order lacked clarity on the interest component, the builder could not claim interest for delays in payment.

Furthermore, under Section 17 of the RERA, 2016, the builder is obliged to execute the registered conveyance deed and hand over possession which he failed to do.

Authority directed the builder to execute the sale deed and officially hand over the flat's keys to the homebuyer, upon the homebuyer paying the remaining corpus fund of Rs. 50,000 and maintenance charges of Rs. 5,000 per month for the period from December 2022 to June 2023, by June 30, 2025.

Case – Thiru S.D.V. Chandru Versus Tamil Nadu Housing Board & anr

Citation – C.No.109/2023

Date – 28/04/2025

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