The Tamil Nadu Real Estate Regulatory Authority made the decision in a case related to a home buyer who, seeking a full refund, had availed of a home loan from the finance company
The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has made a finance company a party to a case, where a home buyer seeking a full refund, had availed of a home loan by depositing title deeds.
In its petition, Amarprakash Developers Pvt Ltd said that home buyer Thirumalai Kumar has moved the Authority against it seeking a full refund of the amount paid by him for purchase of the flat due to a delay in handing over possession. Further, the builder said the home buyer had availed of a home loan from M/s. IIFL Home Loan Division, by depositing the title deeds of the property.
In the event of a refund being ordered in the main case, the amount has to be paid to the Finance Company to clear the charge over the property and it is necessary for it to be made a party to the case, it added. The home buyer argued against the plea.
TNRERA noted that in case a refund was ordered along with interest compensation and other charges, it would be the duty of the home buyer to clear the encumbrance created by him with the Finance Company.
This would enable the Developer to sell the property to any other party with a clear title, it noted and allowed the petition of the developer.