Tamil Nadu RERA Dismisses Homebuyers' Complaint Against Godrej Azure Developer Over Alleged Construction Defects

The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has recently dismissed a complaint filed by homebuyers against Godrej SSPDL Green Acres LLP, the developer of the residential project “Godrej Azure – Twr 2 – Emerald” in Kancheepuram district, seeking rectification of alleged structural defects in their flat or, in the alternative, refund of the purchase amount.

A coram comprising Members Adv. M. Krishnamoorthy and Dr. D. Jagannathan (Retd. IAS) held that the refund could not be granted as the complainants had already taken possession of the flat in June 2020 and continued to remain in possession. The Authority also noted that records showed the developer had undertaken rectification works when complaints were raised.

The bench observed,

“Upon the perusal of documents filed by the Respondents, the job cards dated 18.07.2021, 03.08.2021 and 30.04.2022 shows that the rectification works were taken up by the Respondents and the same was acknowledged by the complainants and their Tenant."

With respect to the claim for refund, it is clear from the complaint filed by the complainants that the possession of the flats was taken up by the complainants in the month of June 2020.”

According to the complaint, the homebuyers booked a flat in the project in 2015 after seeing an advertisement issued by the developer and paid Rs1 lakh as booking advance. They subsequently paid a total of Rs 83,74,707 towards the purchase of the apartment.

A Sale Agreement and Construction Agreement were executed on 22 June 2019. The remaining consideration of Rs 2,90,655 was paid in 2020. The sale deed was registered on January 23, 2020, and possession of the apartment was handed over in June 2020.

The homebuyers alleged that after taking possession they noticed several construction defects, including cracks in ceilings and walls and water seepage through walls, ceilings, windows, and the balcony during rains. They also complained that safety grills were not provided on the windows and balconies of the 18-story building.

They further claimed that the developer had collected Rs 1,60,000 towards construction of a clubhouse that had not been built. The complainants also stated that the developer collected Rs 30,000 for installing a piped gas connection and Rs 1,50,000 towards electricity charges. Despite these payments, they said neither the gas connection nor a separate electricity meter had been provided for the flat.

With these grievances, the homebuyers approached the authority seeking directions to the developer to address the defects in the apartment.

Alternatively, they sought a refund of Rs 83,74,707 along with other charges of Rs 2,70,655 and interest, besides Rs 25 lakh as compensation for mental agony.

Records placed by the developer showed that repair work had been carried out on several occasions. The Authority pointed to job cards dated July 18, 2021, August 3, 2021, and April 30, 2022, which indicated that rectification works were undertaken and acknowledged by both the complainants and their tenant.

It observed that if any defects still remain, the developer would be required to address them in accordance with Section 14(3) of the Real Estate (Regulation and Development) Act, 2016.

The authority also examined the homebuyers' claim for refund.

Possession of the apartment had been taken in June 2020 and the flat was later rented out. As the complainants continued to retain possession and had not withdrawn from the project, the Authority held that refund under Section 18 of the Act was not available.

However, it clarified that the complainants may approach the Adjudicating Officer to seek compensation in accordance with law.