The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has once again underlined its role in protecting homebuyers by issuing significant orders against leading developers. Recent cases involving Selene Estate Ltd.’s “Indiabulls Greens” project in Jalladianpettai and Urbanrise Construction LLP’s “Revolution One” in Padur highlight recurring themes of refund disputes, project delays, and complex loan tie-ups.
Case 1: Indiabulls Greens – Selene Estate Ltd.
Selene Estate Ltd., a subsidiary of Indiabulls Real Estate, launched its Indiabulls Greens township at Jalladianpettai, Sholinganallur Taluk. The project was registered under multiple RERA IDs in 2017, with extensions stretching up to May 2025.
However, the development attracted numerous complaints. Buyers alleged changes in sanctioned plans (7 floors increased to 19 floors), non-delivery of promised units, and long delays. TNRERA directed the promoter to refund amounts with interest, including compensation for mental agony and costs in specific cases. Several execution petitions are still active, and even the Owners Welfare Association had to approach the Madras High Court over basic infrastructure such as electricity.
The orders clearly show that persistent buyer grievances and refund directives have become a hallmark of the Indiabulls Greens litigation trail.
To know the Rera number look into Verified. realestate’s service
Case 2: Urbanrise Revolution One – RCP No.209/2022
In another striking case, buyer T.S. Muthu booked a studio apartment (Flat G-825, 209 sq.ft.) at Urbanrise’s Revolution One project in Padur. He claimed to have paid nearly ₹16.7 lakh through a mix of personal funds and a State Bank of India (SBI) home loan. Despite this, no sale deed was registered, and EMIs continued to mount.
Urbanrise argued that the complainant kept switching bookings across different flats, disturbing their cash flow, and still owed over ₹2.4 lakh on the final price. They pointed out that under the tripartite agreement with SBI, any refund had to flow back to the bank.
After examining the documents, TNRERA partly sided with the builder:
- Ordered refund of amounts received from SBI to the bank, not directly to the buyer.
- Allowed deduction of 10% of the basic sale price as cancellation charges, relying on a Supreme Court precedent.
- Clarified that the insurance component paid to the bank was outside the builder’s liability.
This order illustrates the fine balance between builder obligations and buyer defaults, particularly when loans and tripartite agreements are involved.
Broader Implications
Both cases underline recurring pain points in Chennai’s real estate market:
- Refunds delayed or disputed due to complex loan arrangements.
- Buyers unaware of *tripartite clauses, leading to confusion over who receives refunds.
- Project delays and plan changes forcing buyers into litigation years after initial bookings.
For property buyers, these rulings highlight why it’s critical to:
- Verify RERA registration details and validity periods.
- Review tripartite agreements with banks carefully.
- Use independent platforms like Verified.RealEstate’s services to check for risks before signing agreements.
*A tripartite clause ties your refund fate to your bank. If you cancel or if the builder defaults, expect your refund to go directly to the bank first — you only see money if something is left after your loan dues are settled.