Introduction:

In a notable ruling by the Tamil Nadu Real Estate Regulatory Authority (TNRERA) Bench 1 comprising Chairperson Thiru. K. Phanindra Reddy, I.A.S. (Retd.), Member Thiru. A. Nazir Ahamed, and Member Tmt. Reeta Harish Thakkar, I.A.S. (Retd.), the Authority disposed of C.No.20 of 2026.

While the Authority disposed the complainants’ allegations regarding false advertisement under Section 12 of the Real Estate (Regulation and Development) Act, 2016, it secured a major victory for the homebuyers by ordering the registration of the sale and construction agreements, enforcing the execution of the conveyance deed, and penalizing the builder for violating Section 13 of the RERA Act.

Mr. Rahul Jagannathan’s Compelling Arguments:

Appearing on behalf of the complainants, counsel Mr. Rahul Jagannathan robustly anchored the buyers’ grievances, presenting multi-pronged contentions to safeguard their investment and challenge the builder’s practices:

• Challenging Misleading Project Positioning & Pincode Discrepancies: Rahul Jagannathan forcefully argued that the developer initially marketed the project, TVS Emerald “Luxor”, as being situated in the “Heart of Anna Nagar” under PIN code 600 040, whereas the original RERA registration certificate and approvals designated the project location in Padi under PIN code 600 050. He contended that this amounted to a false and deceptive advertisement under Section 12 of the Act, designed to leverage the premium market and guideline values associated with Anna Nagar while delivering a property in Padi.
• Quantifying Financial Prejudices: Counsel emphasized that the market value in the core Anna Nagar locality is significantly higher than that of Padi, asserting that the misrepresentation caused the homebuyers a minimum apprehended loss of Rs. 1,10,00,000/-. He maintained that the buyers were entitled to seek a renegotiation of terms or alternatively pursue a full refund with interest through the adjudicating officer.
• Exposing Statutory Violations on Unregistered Agreements: Crucially, Mr. Rahul Jagannathan highlighted that despite the complainants having parted with a substantial sum of Rs. 1,72,93,689/- out of the total consideration of Rs. 2,88,22,815/-, the builder failed to register the sale agreement within the mandated four-month window from its execution date of July 17, 2025. He established that accepting more than 10% of the apartment cost without executing and registering a written agreement for sale constitutes a direct, blatant violation of Section 13 of the RERA Act.
• Enforcing Conveyance Rights: Pressing for the ultimate protective reliefs, counsel urged the Authority to direct the immediate execution of the conveyance deed for the undivided share of land (UDS) and the handover of the apartment free from encumbrances pursuant to Section 17 of the Act.

RERA’s Findings & Observations:

• On Section 12 (False Advertisement) and PIN Code Correction: The Authority noted that following its interim directions, the respondent builder pursued rectifications with the Chennai Metropolitan Development Authority (CMDA) and Greater Chennai Corporation (GCC). Because the authorities officially modified the PIN code in Form C to read 600 040 instead of 600 050, and given that the project falls within the expanded Greater Chennai Corporation revenue limits for Anna Nagar West, the Authority held that the discrepancy stood duly rectified.
• On Section 13 (Violation of Agreement Registration): The Authority strongly indicted the respondent for failing to register the sale agreement executed on July 17, 2025, alongside keeping the construction agreement unregistered, despite accepting nearly Rs. 1.73 crore (far exceeding the 10% threshold). The bench categorized this inaction as a clear and direct violation of Section 13 of the RERA Act.
• On Conveyance and Possession: Acknowledging the respondent’s statement in the counter that it was ready to complete registration per the contractual terms, the Authority ruled that the buyers were fully entitled to the execution of the conveyance deed and timely delivery of the apartment.

Final Directions and Reliefs Granted: 

The TNRERA disposed of the complaint with the following strict directives:

1. Address Rectification: The respondent must advertise the project correctly displaying the postal and site address in accordance with prior TNRERA orders, lifting the interim stay.
2. Mandatory Registration & Conveyance: The builder is directed to register the agreement for sale and construction agreement, and execute the conveyance deed for the undivided share of land (UDS) in favour of the complainants within 30 days.
3. Handover: The respondent must execute the final conveyance deed and hand over possession of apartment No. A-802 free from encumbrances by the promised date.
4. Penalty for Section 13 Breach: Invoking Section 61 of the RERA Act, the Authority penalized the respondent with a fine of  50,000/- for contravening Section 13, payable within 30 days