Tamil Nadu RERA Orders Housing Board to Execute Sale Deed and Handover Flat to Homebuyer
CHENNAI, India – May 14, 2025 – In a significant win for homebuyers, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has directed the Tamil Nadu Housing Board (TNHB) to execute the sale deed and hand over possession of a flat in the SAF Games Village Scheme, Koyambedu, Chennai, to a buyer who had paid nearly the entire amount more than three years ago.
The ruling was delivered by a TNRERA bench headed by Thiru L. Subramanian, who emphasized that the delay in executing the sale deed and handing over possession was unjustified and contrary to the commitments made by the public housing authority.
Case Background
The complainant, a Chennai-based homebuyer, was allotted a flat in the SAF Games Village Scheme via an official allotment letter dated November 1, 2021. On the same day, the buyer made an initial booking payment of ₹5,00,000. A few weeks later, on November 20, 2021, the buyer paid the first major installment of ₹1,57,51,745, which included interest as per the payment terms.
As per the original agreement, the balance amount was due at the time of possession. However, despite completing nearly 92% of the total payment (₹1.71 crore), the homebuyer did not receive possession of the flat. Repeated attempts to get updates or resolution from TNHB were met with silence or delays, prompting the complainant to approach TNRERA for redressal.
TNRERA Verdict
TNRERA found merit in the complaint and noted that the Tamil Nadu Housing Board had no legal or procedural justification to delay either the handover or the execution of the sale deed, given that the complainant had fulfilled the financial obligations as required.
In its directive, the Authority ordered TNHB to:
- Immediately execute the sale deed for the allotted flat.
- Hand over physical possession of the property to the complainant without further delay.
- Comply with the order within a reasonable timeframe, failing which the board may be subjected to further penalties or legal actions under the provisions of the Real Estate (Regulation and Development) Act, 2016.
Implications for Public Housing Projects
This ruling reinforces the accountability of public sector developers, like housing boards, under the RERA framework. Often considered less responsive than private developers, state housing boards are now being held to the same standards of transparency, timeliness, and fairness mandated by RERA.
Legal experts say the case also sets a precedent for other allottees facing similar delays in government-run housing projects across Tamil Nadu and beyond.
A Boost for Buyer Rights
The decision underscores TNRERA’s increasing role in protecting home buyer rights, especially in high-value residential investments. With the real estate landscape still rebuilding trust following past delivery delays, such regulatory actions build confidence in the system.
The homebuyer’s legal representative stated, “This is not just a win for our client; it’s a reminder to all government housing agencies that homebuyers cannot be left in limbo after making significant payments.”
Conclusion
As more homebuyers turn to RERA authorities for resolution, this judgment by Tamil Nadu RERA sends a clear message: whether public or private, no developer is above the law when it comes to buyer commitments. The Authority’s directive to the Tamil Nadu Housing Board brings long-overdue relief to the complainant and reinforces the importance of transparency and accountability in public housing delivery.
