Tamil Nadu REAT Upholds Refusal To Remove Sobha VP From RERA Complaint At Preliminary Stage

The Tamil Nadu Real Estate Appellate Tribunal has upheld the Tamil Nadu Real Estate Regulatory Authority's decision refusing to remove Sobha Limited Vice President Sabarinath K.N. from a complaint filed by the Sobha Westhill Owners Association over the Sobha Westhill residential project.

A tribunal comprising Chairperson Justice M. Duraiswamy and Members K. Babu and Selvi Apoorva, I.A.S. (Retd.), dismissed Sabarinath K.N.'s appeal. It held that the issue of his liability cannot be decided at the preliminary stage where the pleadings contain specific allegations regarding his role.

The tribunal observed, "When the 1st respondent had specifically stated in the counter that the appellant and the other respondents have violated the provisions of Section 11(3) and 12 of the Real Estate (Regulation and Development) Act, 2016 by not providing the approved plans and layout plans with specifications to the members of the 1st respondent Association and also the terms of Construction Agreement and that the respondents constructed the common amenities meant for the exclusive usage of the allottees in the lands gifted to the Corporation of Coimbatore. Therefore, the contention of the learned counsel appearing for the appellant that there were no specific pleadings against the appellant in the complaint and hence the name of the appellant should be struck off from the complaint, cannot be accepted."

The complaint was filed against Sobha Limited, its Chairman Ravi PNC Menon, Managing Director Jagadish Nangineni and Sabarinath K.N. The association alleged that the developer failed to provide approved layout and building plans with specifications to the allottees. It also alleged that common amenities meant exclusively for residents were constructed on land gifted to the Corporation of Coimbatore, contrary to the construction agreement.

The Association sought directions for additional water facilities, transfer of the sewage treatment plant and diesel generator yard, construction of an Association office, and handover of the corpus maintenance fund.

Sabarinath K.N. later sought deletion of his name from the complaint. He argued that he had been impleaded only because he was the Vice President of Sobha Limited and that there were no allegations of personal wrongdoing against him.

The Association opposed the plea. It contended that Sabarinath K.N. had acted as Sobha Limited's authorised signatory, responded to its legal notices and was specifically accused of violating the RERA Act and the construction agreement along with the other respondents.

On the question of whether his name could be deleted at that stage, the tribunal observed,

"Further, the question of the appellant's liability cannot be decided at the threshold stage in the Interlocutory Application. The involvement and the liability of the appellant can be decided only after letting in evidence before the Authority."

Finding no error in TNRERA's order, the tribunal dismissed the appeal. It clarified the VP remains free to raise the objections during the adjudication of the main complaint.

For Appellant (Sabarinath K.N.): Advocate G. Vivekanand.