In Case No. 147/2023, heard by the Tamil Nadu Real Estate Regulatory Authority (TNRERA), a flat buyer in Chennai’s luxury Corniche Project filed a complaint against Ramky Wavoo Developers Pvt. Ltd. (1st Respondent) and the Corniche Flat Owners Association (2nd Respondent).
The complaint highlighted confusion over maintenance responsibilities, double billing, and non-itemized receipts — all despite a hefty payment of ₹1.35 crore by the Complainant.
📌 Complainant’s Core Allegations
🔹 Property Purchase & Payment:
- Allotted 5 flats through a possession certificate dated 31.12.2022
- Paid a lump sum of ₹1,35,00,000, which included:
- ₹5,00,000 – Corpus Fund
- ₹3,22,176 – Advance Maintenance for 1 Year
- ₹57,992 – GST
- Took possession on 01.01.2023
🔹 Alleged Failures by the Builder:
- Builder did not issue detailed receipts showing the corpus fund, maintenance, or GST breakup
- Builder failed to transfer maintenance charges and corpus fund to the newly formed Association
- From Sep to Dec 2023, the Complainant received maintenance invoices from the Association, forcing him to pay again for a service he had already paid for
- Claimed total financial damage of ₹6,65,384 and described the builder’s act as “clever swindling”
🏢 1st Respondent’s (Ramky Wavoo Developers) Averments
🔸 Project History:
- Project registered with TNRERA in 2018; Completion Certificate obtained on 13.01.2022
- JDA signed with landowners (including Complainant) in 2012
🔸 Delay Was on Complainant’s Side:
- Sent multiple reminders between May and Dec 2022 to take possession
- Claimed that Complainant delayed clearing dues, hence possession was taken only in Jan 2023
🔸 Maintenance Timeline:
- Maintenance responsibility ran from 15.08.2022 to 14.08.2023, communicated via email on 10.08.2022
- Said Complainant entered midway into the maintenance cycle, like other buyers
🔸 Receipts & Funds:
- Issued a single receipt for ₹1.35 crore — but the 1st respondent acknowledged that the receipt lacked specific breakdown
- Stated that full corpus fund of ₹55 lakhs was transferred to the Association in:
- ₹25,00,000 on 23.01.2024
- ₹30,00,000 on 09.04.2024
- Denied any violation of the RERA Act and called the complaint frivolous
🧾 2nd Respondent: Corniche Flat Owners Association – Issues and Involvement
🏘️ Role:
- Officially formed on 04.09.2023
- Became responsible for common area maintenance and collections
📩 Issues:
- Issued invoices to the Complainant for Sep–Dec 2023 maintenance with GST, assuming non-payment
- Did not verify whether builder had already collected and transferred funds
- Failed to attend hearings and was declared ex-parte by TNRERA on 04.04.2024
🧃 Result:
- While the Association was not legally at fault, their lack of communication and legal participation worsened confusion and buyer pressure
⚖️ Final Verdict by TNRERA
After careful analysis, the Authority delivered the following decision:
✅ Key Determinations:
| Question | Verdict |
|---|---|
| Was possession delayed? | Yes, due to Complainant’s delay in clearing dues |
| Should builder pay for Sep–Dec 2023 maintenance? | No, Association took over in Sept 2023 |
| Were receipts inadequate? | Yes, receipt lacked clarity, caused valid confusion |
📜 Final Order:
“The 1st Respondent is directed to issue proper itemized receipts for the amounts received from the Complainant, including the corpus fund and advance maintenance charges along with GST — on or before 30.06.2025.”
Penalty or Compensation -The Authority did not impose penalties under Section 61 or grant financial compensation
Complaint Partly Allowed – The case was partially upheld—TNRERA agreed with the complainant on receipt failure, but not on liability for maintenance post-association formation as it was clearly indicated to the complainant that the maintenance charges paid to the builder were for the period from 15.08.2022 to 14.08.2023 in an email.
📊 Summary: Key Lessons from Case 147/2023
🧠 For Buyers:
- Always demand clear, itemized receipts
- Verify start dates for maintenance liability
- Don’t assume that lump-sum payment = compliance
🏗 For Builders:
- Maintain transparent accounting and communication
- Use line-itemized invoicing to prevent disputes
- Transfer funds to associations promptly and document it well
🏘 For Associations:
- Don’t issue duplicate demands without confirming builder transfers
- Participate in legal proceedings and maintain clear communication