Tamil Nadu RERA Directs Casa Grande Builders To Refund Wrongfully Collected Late Fee With Interest To Homebuyer
Pranav B Prem
The Tamil Nadu Real Estate Regulatory Authority (TNRERA) Bench comprising Dr. L. Subramanian (Member) and M. Krishnamoorthy (Member) has held M/s Casa Grande Homes Pvt. Ltd. liable for wrongfully collecting a late fee from a homebuyer despite timely payments. The Authority directed the builder to refund the late fee amount along with interest and litigation costs.
Background Facts
The complaint was filed under Section 31 of the Real Estate (Regulation and Development) Act, 2016, by Bhuvana Ramkumar, the allottee and owner of Flat No. E-403 in the respondent’s residential project “ECR 14” at Kanathur Reddy Kuppam, Thiruporur Taluk, Kancheepuram District. The complainant stated that she had decided to purchase the flat after seeing the builder’s extensive advertisements. The project had obtained all necessary approvals, including technical clearance, building permission, environmental clearance, and registration with TNRERA. The complainant’s son initially paid an advance of ₹1,00,000 on December 27, 2017, following which an allotment letter was issued. The flat had a carpet area of 1170 sq. ft. with one covered car park, and the total cost was fixed at ₹79,40,000 excluding GST, registration, and corpus fund. Subsequently, the complainant, acting under a Power of Attorney executed by her son, entered into a construction agreement and a sale agreement with the builder on April 6, 2018.
The builder undertook to hand over possession by December 2019, and the total construction cost was ₹71,94,110 with an undivided share of land valued at ₹7,45,890. The construction agreement and sale deed were later executed on October 25, 2021. By then, the complainant had paid a total of ₹89,42,621 towards the flat, which included GST, registration, and corpus fund charges. However, the builder collected an additional ₹86,698 as late fee, despite the complainant having made all payments within the prescribed time. A No Due Certificate was issued on November 9, 2021. Aggrieved by the wrongful collection, the complainant approached the Authority seeking refund of the late fee along with compensation.
Builder’s Contentions
The respondent builder, represented by M/s. Ganesh & Ganesh, Advocates, denied all allegations except the admitted facts regarding the project and allotment. It contended that the complaint was an afterthought since the No Due Certificate had been issued in November 2021, and the complaint was filed after nearly seventeen months. The builder further argued that, as per the terms of the agreement and Section 19(7) of the RERA Act, the allottee was liable to pay interest for any delay in payments, and hence, the imposition of late fees was justified.
Observations of the Authority
After examining the evidence and documents submitted by both parties, the Authority observed that the complainant had made almost all payments on time and that the alleged delays were wrongly recorded by the builder. The calculation sheet produced by the complainant showed that payments made on earlier dates were deliberately shown as delayed. For instance, the Authority noted that ₹39,58,090 was paid on June 4, 2018, but the builder recorded it as June 5, 2018 and split it into two transactions to falsely show a delay. Similarly, other payments reflected as delayed were also found to be misrepresented.
The Bench further noted that the delay in the project’s completion was on the part of the builder, not the homebuyer. Referring to prior orders passed by the Adjudicating Officer in similar complaints (CCP Nos. 59, 60, and 61 of 2023), the Authority reaffirmed that the builder had delayed handing over possession and was not entitled to demand any late fee or interest from the allottee.
Holding that the builder had wrongfully collected ₹86,698 as delayed payment charges, the Authority directed Casa Grande Homes Pvt. Ltd. to refund the amount with interest. The interest was ordered to be calculated at 10.70% per annum, which includes the current SBI Marginal Cost of Lending Rate (8.70%) plus 2%. Additionally, the Authority awarded ₹25,000 as litigation costs to the complainant. The builder was directed to comply with the refund and payment of interest within 30 days from the date of the order (October 13, 2025). Accordingly, the Tamil Nadu Real Estate Regulatory Authority allowed the complaint and directed Casa Grande Homes Pvt. Ltd. to refund the wrongfully charged late fee of ₹86,698 with interest at 10.70% per annum, along with ₹25,000 as litigation expenses, within 30 days.
Appearance
Complainant: Rep. by M/s. Vivrti Law, Advocates
Respondent: Rep. by M/s. Ganesh & Ganesh, Advocates
Cause Title: Bhuvana Ramkumar Versus M/s. Casa Grande Homes Pvt. Ltd.
Case No: RCP No. 86 of 2023
Coram: Dr. L. Subramanian (Member), M. Krishnamoorthy (Member)
