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News: TN RERA Awards Rs 3 Lakh for Mental Agony Over Delayed Flat-10-03-2026

The Tamil Nadu Real Estate Regulatory Authority (TN RERA) has ordered a developer to pay homebuyers Rs 3,00,000 as compensation for mental agony, distress and suffering caused by delayed possession, along with Rs 50,000 for legal expenses.

According to the order, the complainants booked an apartment in the Casagrand Millenia project in July 2022 with an advance of Rs 1 lakh. The total cost was Rs 2.11 crore. Sale and construction agreements followed in September 2022, with handover due in June 2023. The order records that delivery was extended to March 2024 instead of December 2023, and that completion and handover have still not happened. The buyers have paid Rs 1.92 crore, leaving Rs 17.6 lakh to be paid by the bank, so the developer had received almost 91% of the sale value.

In July 2023, the developer issued a termination notice cancelling the allotment, citing overdue payments and saying it would keep 20% of the booking amount and refund the rest.

Before the authority, the developer argued the complaint was not maintainable. It said the project had statutory approvals, the construction agreement was entered into in December 2022 and provided for delivery by December 2023 with a grace period acknowledged by the buyers, and the complainants had continuously defaulted, with Rs 32.1 lakh still payable.

After examining the agreements, payment records and emails, TN RERA held that the developer had undertaken to finish construction by December 2023 with a three-month grace period, so the undertaking expired by March 2024 and it was bound to deliver possession. The authority noted that the last three payments were made before the developer filed its counter-statement on 12.03.2025, showing the buyers had been prompt, a fact the developer did not disclose. It observed that the buyers had paid Rs 1.92 crore of a total cost of Rs 2.10 crore by August 2023, using a home loan taken solely for the purchase.

The authority found no evidence of regular reminders about the alleged dues. It said it was neither fair nor justified for the developer to hold a substantial part of the construction cost between 2022 and 2023 and then abruptly terminate the allotment. The delay, it concluded, was "not acceptable".

A list of questions has been sent to the developer.

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