TN RERA Orders Mahindra Lifespace To Rectify Defects, Activate Amenities At Happinest Avadi Project
Pranav B Prem
The Tamil Nadu Real Estate Regulatory Authority (TN RERA) has directed Mahindra Lifespace Developers Limited to rectify defects and ensure that essential amenities in C Block of the “Mahindra Happinest Avadi” project at Thiruvallur district are fully functional before handing them over to the residents. The authority held that the developer cannot evade its maintenance obligations when common facilities have not been formally handed over to the concerned association. A Bench comprising Chairperson Thiru. Shiv Das Meena and Members Dr. L. Subramanian and M. Krishnamoorthy passed the order while allowing a complaint filed by the Nalām Home Owners Association, which represents the residents of C Block in the project.
The association approached TN RERA alleging that several amenities promised at the time of booking and reflected in project brochures were either non-existent or not functioning. It was contended that untreated sewage was overflowing onto internal roads due to a non-functional sewage treatment plant (STP), the water treatment plant (WTP) was defective resulting in untreated water supply that damaged household appliances, and the food waste treatment plant and diesel generator (DG) systems were not operational. The residents also complained of low water pressure on upper floors, water leakage through windows during rains, absence of CCTV cameras, and non-provision of DG power in common areas.
The association further pointed out that instead of a concrete road as promised, the internal driveway in C Block was laid with uneven paver blocks, making it inconvenient and unsafe. It was also alleged that a concrete compound wall promised in the project brochure was replaced with a green fence and that parking spaces earmarked for C Block residents were allotted to buyers from other blocks.
During the proceedings, TN RERA took note of an inspection report submitted by an independent engineer. Relying on this report, the authority recorded that “one STP (sewage treatment plant) is not working, and the WTP, food waste treatment plant is also not working and the DG (Diesel Generator) supply in common areas is not provided.” The authority held that it was therefore obligatory on the part of the developer to rectify these deficiencies.
Mahindra Lifespace Developers resisted the complaint by contending that a project-wide association, namely the Happinest Avadi Home Owners Association, had been formed in 2017 and that memorandums of understanding (MoUs) were executed with it for the handover and maintenance of common facilities such as STP, WTP, lifts and DG sets. According to the developer, once these MoUs were signed, the responsibility for maintenance shifted to the association. It was also argued that parking allocation was within the association’s domain and that the use of paver blocks for the driveway was done with consent.
TN RERA, however, rejected these submissions. It noted that no MoU had been executed with an association formed exclusively for C Block, and that the maintenance of C Block had not been formally handed over to any association. The authority observed that the developer could not rely on arrangements with a project-level association to escape responsibility when block-wise handover had not taken place.
The authority also observed that other blocks in the same project had concrete roads, and that the project brochure expressly promised RCC roads and streetlights. It held that the developer was bound to provide the same facilities in C Block and could not offer inferior infrastructure.
Holding that the deficiencies complained of were established, TN RERA directed Mahindra Lifespace Developers to rectify all defects pointed out in C Block, ensure that the STP, WTP, food waste treatment plant and DG sets are fully functional, and thereafter hand over the common amenities to the C Block association. The authority further directed the developer to provide a concrete driveway in C Block in accordance with the representations made to homebuyers. The order reiterates that a promoter continues to bear responsibility for maintenance and functionality of common amenities until a proper and lawful handover is completed, and that such obligations cannot be unilaterally shifted onto residents or associations.
Cause Title: Nalam Home Owners Association (NHOA) Versus M/s. Mahindra Life Space Developers Ltd
Case No: C.No.106 of 2023
Coram: Chairperson Thiru. Shiv Das Meena and Members Dr. L. Subramanian, M. Krishnamoorthy
