In a decisive move to curb arbitrary financial demands in the real estate sector, the Tamil Nadu Real Estate Regulatory Authority (TN- RERA) has ordered a promoter to strictly abide by the specific terms and conditions enshrined in the original Construction and Sale Agreement.

The ruling underscores a fundamental legal principle: once a price and a set of terms are agreed upon and registered, a developer cannot unilaterally alter the financial burden on the homebuyer.

The Legal Contention: Holding the Line on Agreements

The case centered on the arguments presented by Mr. Rahul Jagannathan, appearing on behalf of the homebuyers. His submission highlighted a growing concern in the industry—the shifting goalpost of project costs.

Key arguments raised by Mr Rahul Jagannathan included:

• Breach of Contract: The promoter was actively deviating from the mutually signed and registered agreements, which serve as the final word on the financial obligations of the parties.
• Unauthorized Additional Demands: The promoter was demanding payments that were never part of the initial negotiations or the written contract. Counsel argued that these hidden costs lacked any legal basis under the existing agreement.
• Protection of Allottee Interests: By demanding funds beyond the agreed-upon consideration, the promoter was placing an unfair and uncontracted financial strain on the buyers, violating the transparency mandates of the RERA Act.

The TN-RERA Directive

Accepting the contentions raised by Mr. Rahul Jagannathan, the Authority ruled in Favor of the homebuyers. The directive was straightforward but firm: The promoter must strictly adhere to the terms of the signed agreements.

This ruling effectively bars the developer from:

1. Collecting any extra charges that were not explicitly detailed in the original payment schedule.
2. Withholding project milestones or possession based on the non- payment of these unauthorized sums.
3. Modifying the terms of the sale without following the statutory process of seeking formal consent from the allottees.

Conclusion

By siding with the arguments of the homebuyers counsel, TN- RERA has reaffirmed that the Agreement for Sale is the law of the project. This decision provides a clear path for buyers to challenge arbitrary price hikes and ensures that the financial transparency promised by the RERA Act remains a reality.

The terms of the signed agreement are not merely guidelines; they are the definitive boundaries of the commercial relationship between a builder and a buyer.