Chennai: Developers collect deposits from home buyers without entering the construction or sales agreement are violations based on the Rera Law, the country’s real estate regulator has ruled.
In the recent order, Tamil Nadu Real Estate Regulatory Authority (Terna) also observed that partial payments with the guise of payment on ‘expressions of interest’ with the promise of refund of deceiving and designed to bypass legal procedures.
Complaints related to the ‘The Goodwood Residence’ in the Cenotaph Cenotaph Chennai area, developed by Cenotaph Developers LLP and Olympia Tech Park Chennai Pvt.
Ltd., the complainant submission says? 3.63 Crore has been paid to the developer under the ‘unrighting interest expression’ to buy a flat in a housing project in 2016.
A year later, complainants choose to withdraw from the project and seek refunds.
Developer back? 3.5 crore after reducing almost? 12.8 lakh as a service tax, the complainant is submitted to Tnrera and demands a refund of reduced amounts.
In a written statement, the developers denied the allegations and said the complaint was prima facie could not be maintained for jurisdiction desires.
The amount received from the complainant, the developers say they pay? 12.8 lakh for other service taxes, Swachh Bharat Cess and Krishi Kalyan Cess and restore balance.
Tnrera, after hearing both parties, said the developer collected around 80% of the costs without entering the sales or construction agreement, a clear violation of Part 13 of the Rera Law.
Noting that the developer in 2016 received two checks for? 95 lakh from the complainant towards ‘expression of interest’, the TNRERA G Saravanan court officer said the receipt of the payment was promised to restore the legal procedure.
Furthermore, developers failed to prove that they provided taxable services to complainants, which were registered with the Service Tax Authority to make the payment in connection with the project.
Therefore, the complainant has the right to the amount reduced along with 10.2% interest, the word real estate regulator command.