The Tamil Nadu Real Estate Regulatory Authority [TNRERA] gave its ruling and clearly stated that the builders/developers must have the consent of two-thirds of the buyers if they wish to make it a split project.
This order by the TNRERA authority came in relation with ‘Serene Kshetra’ project promoted by Adinath Srinivasa Foundations LLP in Kancheepuram district of Tamil Nadu. The same was made public a day before and empowers the homebuyers in regard to the residential projects.
The developer turned this project into a phased development after the project fall in two adjacent plots. This project was initially conceived as an integrated project but some completed portions of this project were exempted from registry under the real estate act.
In the final order, S Krishnan TNRERA’s interim chairman said that the project was initiated as an integrated project.
He further said that the builder has admitted that the question of splitting the project into phases arose after the RERA Act came into existence. The intention was likely to avail benefit under the Act by segregating the structurally completed portion of the project as a separate one and out of the purview of RERA.
The authority also said that nothing indicates that the builder had any statutory right and automatic right conferred to the splitting of this project and it seems that the builder himself interpreted splitting the project into phases according to his convenience.
S Krishnan TNRERA’s interim chairman also said that phased development must be declared clearly and should be done with the consent of two-thirds of the allottees.
The developer has been directed to get the entire project registered under RERA within two weeks.