TN REAT Sets Aside RERA Direction For Housing Board To Provide Water Treatment Equipment To 133 HIG Flats
On 24 August, the Tamil Nadu Real Estate Appellate Tribunal (REAT) set aside a direction of the Tamil Nadu Real Estate Regulatory Authority (TNRERA) requiring the Tamil Nadu Housing Board to provide water treatment equipment to all 133 flats in its Higher Income Group (HIG) housing project.
A Coram comprising Chairperson Justice M. Duraiswamy and Judicial Member K. Babu held that relief sought by an individual allottee cannot be extended to other flat owners who had not filed the complaint and partly allowed the Housing Board's appeal. The Bench observed:
“With regard to the provision of Water Treatment Equipment for each Flat, as rightly contended by the learned counsel appearing for the appellant, out of 133 Flats, only the respondent had filed the complaint seeking for the Water Treatment Equipment. In such case, giving a direction to the appellant Board to provide the Water Treatment Equipment for all the Flats, cannot stand. Accordingly, the same is set aside.”
The dispute arose after Malathi, who had been allotted an HIG flat by the Housing Board, filed a complaint before TNRERA seeking, among other reliefs, registration of the project, execution of a registered conveyance deed and provision of the amenities listed in her complaint.
On 9 February 2023, TNRERA directed the Housing Board to provide the advertised amenities by 31 March 2023, execute the sale deed and register the project under the Real Estate (Regulation and Development) Act, 2016 by 30 April 2023. It also recorded that possession had been handed over on 1 February 2019 and directed refund of the TDS amount. After the Housing Board failed to fully comply, Malathi filed an execution petition.
On 8 May 2026, TNRERA found only partial compliance, imposed a Rs. 1 lakh penalty and directed registration of the project by 30 June 2026. It further required a compliance report concerning water treatment equipment for each flat, water heaters, gas pipeline connections, pneumatic water controlling systems and stainless-steel sink drain boards.
The Housing Board challenged the execution order under Section 44 of the Real Estate (Regulation and Development) Act, 2016, which provides for an appeal against orders of the Regulatory Authority.
It argued that Malathi had approached TNRERA as an individual allottee and that the direction to provide water treatment equipment to every flat was therefore erroneous. It also submitted that its project-registration application was already under process and that the Rs. 1 lakh penalty was excessive.
The Tribunal accepted the Housing Board's objection to extending the relief to all 133 flats and held that the water treatment equipment could be ordered only for Malathi.
It nevertheless directed the Housing Board to provide her with the equipment along with the water-heater arrangement, gas pipeline connection, pneumatic water controlling system and stainless-steel sink drain board by 30 September 2026.
The Bench also directed TNRERA to decide the Housing Board's pending project-registration application on merits and in accordance with law.
It further found the Rs. 1 lakh penalty excessive as the Housing Board was running at a loss and reduced it to Rs. 30,000, which had already been deposited as the statutory pre-deposit.
Accordingly, REAT partly allowed the appeal and closed the connected application.
Appearances for appellant (Tamil Nadu Housing Board): Advocate Ganesh V. Aranala.