Alba Law Offices Newsletter – October, 2024

HIGHLIGHTS OF THE MONTH

Person Involved in Joint Venture Agreement Arrangement with Developer Is Not a Homebuyer

[M. Marudhachalam Vs M/s. Harish Builders (S.R.No.41 of 2024)]

In a recent ruling, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) dismissed a complaint filed by M. Marudhachalam ("Complainant"), who claimed to be a homebuyer in a joint venture agreement concerning the "Uthra Flats" project in Madipakkam, Chennai. The bench determined that the Complainant's status as a party to the joint venture excluded him from being classified as a homebuyer under the Real Estate (Regulation & Development) Act, 2016 (RERA).

The case stemmed from the decision of flat owners to demolish an aging apartment building and construct a new one with a developer under a joint venture. The apartment owners and the builder entered in a sharing arrangement for construction of the new apartment. The construction was delayed, and the builder ("Respondent") failed to