Madras High Court on Illegality of Construction Without Environmental Clearance, RERA Applicability, and Homebuyer Rights in Ongoing Real Estate Projects

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

Date: 07.09.2026

Madras High Court on Illegality of Construction Without Environmental Clearance, RERA Applicability, and Homebuyer Rights in Ongoing Real Estate Projects

The Madras High Court’s decision in the case of Subashini Thulasiram v. SPR & RG Constructions Pvt. Ltd. is a significant milestone in the fight against illegal real estate practices, environmental violations, and the protection of homebuyers’ rights under the Real Estate (Regulation and Development) Act, 2016 (RERA). This article provides a detailed overview of the case, its background, legal findings, and its broader implications for the real estate sector.

Background of the Case

1. Parties Involved:
   • Appellant: Subashini Thulasiram, a homebuyer.
   • Respondent: SPR & RG Constructions Pvt. Ltd., the developer.
2. Property Details:
   • Flat No. 9131, 13th floor, Block No. 9, Osian Chlorophyll project, Karambakkam Village, Ambattur Taluk, Thiruvallur District.
   • Sale cum construction agreement dated 27.11.2012.
   • Total cost: Rs. 11,49,500 (land) + Rs. 81,85,380 (construction).
3. Key Issues Raised:
   • Delay in handing over possession.
   • Construction without mandatory environmental clearance.
   • Deviation from approved plans and increase in dwelling units without buyer consent.
   • Non-registration of the project under RERA.

Timeline of Events

• 2012: Agreement signed; possession promised by March 2015.
• 2015: Developer seeks extension, citing pending approvals.
• 2017: RERA Act comes into force (May 1); developer claims project completion (May 3) and applies for completion certificate (May 29).
• 2018: Environmental clearance obtained (June 27); revised completion certificate for increased units (September 6).
• Legal Proceedings: Multiple complaints and appeals filed by the buyer, culminating in the High Court judgment.

Legal Findings and Analysis

1. Environmental Clearance is Mandatory

• The court emphasized that environmental clearance must be obtained before starting construction, as per the 2006 Central Government notification.
• The developer began construction without this clearance, making the entire project illegal until the certificate was belatedly obtained in 2018.

2. RERA Registration and Ongoing Projects

• Under Section 3 of the RERA Act, projects without a completion certificate as of May 1, 2017, must register with RERA.
• The developer applied for the completion certificate only on May 29, 2017, after the Act commenced, and received it much later.
• The court held that the project was an “ongoing project” and not exempt from RERA registration, rejecting the developer’s reliance on state rules that conflicted with the central Act.

3. Deviation from Approved Plans

• The developer increased the number of dwelling units from 950 to 1050 without informing or obtaining consent from existing buyers, reducing their undivided share of land and violating their rights.
• The revised plan and completion certificate were obtained after construction was already completed, raising questions about regulatory oversight and possible collusion.

4. Accountability of Authorities

• The judgment criticized the lack of proper inspection and due diligence by the Chennai Metropolitan Development Authority (CMDA) and other officials.
• It called for action against both the developer and responsible officials for approving and regularizing illegal constructions.

Directions Issued by the Court

1. The project must be treated as an ongoing project and registered under RERA.
2. The buyer’s complaint is maintainable and must be heard on merits.
3. The authorities are directed to expedite the hearing and resolution of the complaint and any subsequent appeals.
4. The developer’s actions in obtaining post-facto environmental clearance and revising plans without buyer consent are declared illegal.

Broader Implications

• For Homebuyers: The judgment reinforces the rights of buyers to demand transparency, adherence to approved plans, and timely possession.
• For Developers: Strict compliance with environmental and regulatory approvals is mandatory. Post-facto clearances do not legalize prior violations.
• For Regulatory Authorities: The case highlights the need for vigilant oversight and accountability in granting approvals and monitoring construction.

Conclusion

The Subashini Thulasiram judgment is a landmark in ensuring accountability in the real estate sector. It upholds the supremacy of the RERA Act, mandates strict adherence to environmental laws, and protects the interests of homebuyers against unscrupulous practices. This case serves as a warning to developers and a reassurance to buyers that the law will protect their rights and interests.

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Source: Madras High Court

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