News: TN RERA Rejects ’Lame Excuses’, Orders Similar Flat-29-03-2026
Labour shortages, lack of materials and delayed approvals are "lame excuses" for late delivery, the Tamil Nadu Real Estate Regulatory Authority (TN RERA) has held, finding a developer in breach for cancelling a buyer’s allotment and selling the flat to someone else.
The authority directed the builder to hand over an apartment of similar specifications in the same project, on the terms and conditions originally agreed between the parties.
The buyer had booked a 2.5 BHK flat on the 19th floor of a project in Jalladianpettai, Sholinganallur, Chennai, with a saleable area of 1,489 sq ft and one car parking space. The total cost was Rs 62.59 lakh, and the builder also agreed to transfer 298 sq ft of undivided land share for Rs 7.82 lakh. He paid an advance of Rs 50,000 on March 20, 2021.
As recorded in the order, the complainant said he was assured delivery on or before 30.06.2021, and on that basis paid the Rs 50,000 booking amount on 21.03.2021 and a further Rs.9,12,896 on 24.03.2021, in line with the payment schedule under the Construction Agreement dated 24.03.2021.
He later found from an encumbrance certificate that the same flat had been sold to another buyer on October 24, 2024, for Rs 1.11 crore. He maintained that he had met his payment commitments and was not responsible for any delay, and said the cancellation and resale left him under financial pressure because he was paying rent while servicing a home loan.
The developer blamed natural calamities, shortage of labour and construction materials and delays in securing approvals. It also alleged that the complainant had defaulted on later payments despite repeated reminders.
The authority found these reasons generic and not valid grounds for delay. It said arranging labour and materials and obtaining statutory approvals is the developer’s responsibility, and that it could not understand which approvals were being referred to when the project was already registered with TNRERA, since approvals are obtained before launch. It held the developer responsible for the delay in handing over possession even though the complainant had paid as the agreement required.
