Builder not liable for interior decoration made before registration: TNREAT

CHENNAI: Dismissing an appeal filed by home buyers, who spent on interior works before registering the apartment, the Tamil Badu Real Estate Appellate Tribunal (TNREAT) observed that unless and until the builder gives commitment, they cannot be made liable for money spent by buyers.

Homebuyers S Natarajan and T Gomala Geetha booked an apartment in the project developed by Rajkham Infra Pvt Ltd. Both the parties entered into a construction agreement in November 2020.

From October 2020 to December 2020 the buyers have paid Rs.25,00,000 towards the cost of construction and the value of UDS land. The total cost of construction as per the construction agreement is fixed at Rs. 40,39,040.

Meanwhile, the builder agreed to hand over temporary possession of the apartment for conducting house warming pooja and for carrying out Interior decoration works at Rs. 2.87 lakh.

As the promoter failed to get NOC from the creditor, the registration of sale deed could not be completed as proposed by the buyers during first week of February 2021.

As they Insisted for the NOC Issued by the creditor of the promoter by clearing the dues, to circumvent the same the builder sold the apartment to another person for higher value along with the interior decoration works carried out by the buyers.

Aggrieved, buyers claimed compensation of Rs. 2.87 lakh and claimed rental loss in front of TNRERA. But the Authority dismissed the petition.

While hearing the appeal filed by buyers, Tribunal observed that the buyers were proceeding with the interior works without getting any specific assurance from the promoter in writing with regard to carrying out the Interior wood works and painting works.

“Thus, the appellants put themselves in juxtaposition. The appellants very well knew that they were carrying out the interior wood works and painting works, at their own risk and costs.

Unless and until there is a specific authorization or any commitment on the part of the respondent in respect of carrying out the interior decoration works by the appellants, they cannot be made liable for the costs allegedly incurred by the appellants in carrying out the interior decoration works and painting works, ” the Tribunal said in its order.