Mumbai, Nov. 2 -- The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has imposed a penalty of Rs. 50,000 on Emerald Haven Development for accepting more than 10 per cent of an apartment's cost before registering the sale and construction agreements for its project in Anna Nagar. The authority also directed the promoter to register the agreements and execute the conveyance deed within 30 days.

The order, issued on October 13, followed complaints from two homebuyers about the project's location and advertising. The buyers alleged that the development was promoted as being in the heart of Anna Nagar and used PIN code 600040, although records identified it as being in Padi, which has PIN code 600050.

The buyers claimed that the advertisement led them to pay more than the prevailing market value in Padi, resulting in a loss of at least Rs. 11 mn. They sought action under section 12 of the Real Estate (Regulation and Development) Act, which deals with misleading advertisements and representations by promoters.

Emerald Haven Development denied deliberate misrepresentation and said the project was located in Anna Nagar West Extension, within the jurisdiction associated with PIN code 600040. It attributed the discrepancy in the registration certificate to a clerical error and said it had approached the Chennai Metropolitan Development Authority and the Greater Chennai Corporation to correct the record.

TNRERA accepted the promoter's explanation and found no violation of section 12. However, it held that the sale and construction agreements executed on July 17, 2025, remained unregistered, contrary to section 13 of the Act, which prevents promoters from accepting more than 10 per cent of an apartment's cost without first entering into and registering a written agreement for sale.

The buyers had paid Rs. 17.2 mn against total consideration of Rs. 28.8 mn. In addition to imposing the penalty, TNRERA directed the promoter to register the agreements and complete the conveyance process within the stipulated period.

Published by HT Digital Content Services with permission from Construction World.