Madras High Court Affirms RERA Non-Applicability to Pre-2017 Completed Projects

Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

Date: 03.09.2026

Madras High Court Affirms RERA Non-Applicability to Pre-2017 Completed Projects

A recent judgment by the High Court of Judicature at Madras has brought clarity to the rights of homebuyers and the jurisdiction of regulatory authorities under the Real Estate (Regulation and Development) Act, 2016 (RERA). The case, involving R. Santhi Pitchaiya Nattar and Homefinders Housing Ltd, revolved around refund claims, project completion, and the applicability of RERA to projects completed before the Act came into force.

Background of the Case

• Parties Involved:
  • Appellant: R. Santhi Pitchaiya Nattar
  • Respondent: Homefinders Housing Ltd
• Project in Dispute: Apartments 13A and 16B in the ‘Elegant Palm’ project, Aatchikadu Village, Villupuram District.
• Timeline:
  • Booking and payments made in June 2012.
  • Construction agreement and sale deed executed in June 2012.
  • Dispute arose due to alleged delay in completion and handover.

Key Issues Raised

1. Whether the project was exempt from RERA registration under Rule 2(h)(iii) of the Tamil Nadu RERA Rules, 2017.
2. Whether the appellant was entitled to a refund with interest due to non-completion.
3. Whether a completion certificate from a private architect sufficed in the absence of a certificate from the competent authority.
4. The jurisdiction of RERA and its appellate bodies over unregistered or pre-RERA projects.

Proceedings and Arguments

• Appellant’s Stand:
  • Paid almost the entire sale consideration by 2012.
  • Alleged non-completion and failure to hand over possession.
  • Sought refund with interest from the developer.
• Respondent’s Stand:
  • Claimed project completion in 2014 and communication to the buyer.
  • Argued that the buyer failed to pay the final installment and did not take possession.
  • Asserted exemption from RERA as the project was completed before 01.05.2017.

Orders by Regulatory Authorities

1. TNRERA (Regulatory Authority):
   • Directed the developer to refund the amount paid by the buyer after deducting certain charges.
2. TNREAT (Appellate Tribunal):
   • Set aside the TNRERA order, holding that the project was exempt from RERA registration and outside its jurisdiction.

High Court’s Analysis and Judgment

• The High Court examined the applicability of RERA and the Tamil Nadu RERA Rules, especially Rule 2(h)(iii), which exempts projects completed before 01.05.2017 from registration.
• The Court found that:
  • The project was listed as completed before the cut-off date and notified as such by the authorities.
  • The regulatory authority (TNRERA) lacked jurisdiction over the dispute as the project was not required to be registered under RERA.
  • Aggrieved buyers in such cases must seek remedies through civil courts or consumer forums, not RERA.
• Final Decision: The appeals by the buyer were dismissed, upholding the appellate tribunal’s order.

Implications of the Judgment

1. Jurisdictional Clarity: Projects completed before 01.05.2017 and duly notified are outside RERA’s purview in Tamil Nadu.
2. Remedy for Buyers: Buyers in such projects must approach civil courts or consumer forums for grievances, not RERA.
3. Importance of Timely Communication: Developers must ensure timely completion and proper communication to avoid disputes.
4. Documentation: Both buyers and developers should maintain clear records of payments, agreements, and communications.

Conclusion

This judgment reinforces the boundaries of RERA’s jurisdiction and provides guidance for both homebuyers and developers regarding disputes in pre-RERA projects. It underscores the importance of understanding the legal framework and seeking appropriate forums for redressal.

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Source: Madras High Court

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