The Tamil Nadu Real Estate Regulatory Authority (TN-RERA) has directed M/s Ozone Projects Pvt Ltd to pay a penalty of ₹3,00,000/- for statutory violations and ordered the immediate handover of an apartment to a complainant.

The Authority, while allowing the complaint, found the promoter in significant contravention of the Real Estate (Regulation and Development) Act, 2016 (RERA)

Arguments of the Complainant

Mr. Rahul Jagannathan, appearing for the Complainant, argued that the promoter’s conduct was a textbook case of statutory defiance and contractual breach. The primary thrust of the counsel’s argument was that the promoter had not only failed to deliver the property but was actively attempting to alienate the Complainant’s interest in favor of third parties.

The following key contentions were raised by the counsel:

• Breach of Agreement: The promoter failed to adhere to the terms of the Sale and Construction Agreement, unilaterally deviating from the agreed timelines and obligations.
• Settlement of Dues via Incentives: A specific arrangement existed where the promoter had agreed to adjust the incentives of the Complainant’s husband—a former employee of the promoter—against the outstanding payments for the apartment.
• Quantification of Dues: Based on the agreed adjustments and payments made, the counsel submitted that only a sum of ₹47,26,192/- remained payable to the promoter to clear the balance.
• Illegal Third-Party Alienation: In a move termed as “completely illegal” under the RERA framework, the promoter was allegedly attempting to sell the booked property to a third party. Documentary evidence was placed before the Authority to prove these attempts.
• Violation of Section 13: The counsel placed heavy emphasis on the promoter’s violation of Section 13 of the RERA Act. It was argued that the promoter collected 40% of the total consideration without executing or registering a formal sale agreement, exceeding the statutory limit of 10%.

Observations of the Authority

•       Accepting the contentions of Mr. Rahul Jagannathan, the TN-RERA observed that the promoter’s actions were in “complete contravention” of the RERA Act. The Authority took a grim view of the promoter’s attempt to sell a property that had already been booked and partially paid for by the Complainant.
•       “The act of the promoter in attempting to sell the property booked by the complainant is a flagrant violation of the protective umbrella provided to allottees under the RERA Act.”

The Order

In a decisive ruling aimed at protecting consumer interests, TN-RERA issued the following directions:

1.   Penalty: The promoter is directed to pay a penalty of ₹3,00,000/- for various statutory violations, including the breach of Section 13.
2.   Possession: The promoter is ordered to hand over possession of the apartment to the Complainant without further delay.
3.   Compliance: The Authority reaffirmed that the promoter cannot proceed with any third-party interests regarding the subject property.

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