The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has made a finance company a party to a case in which a homebuyer is seeking full refund. He had availed a home loan by depositing title deeds.
In its petition, Amarprakash Developers Pvt Ltd said home buyer Thirumalai Kumar had moved TNRERA against it, seeking full refund of the amount paid by him for the purchase of a flat following delay in handing over possession.
Further, the builder said the homebuyer had availed a loan from M/s. IIFL Home Loan Division by depositing the title deeds of the property. In event of a refund being ordered in the case, the amount has to be paid to the finance company to clear the charge over the property, and it is necessary for the firm to be made a party to the case, it added.
The homebuyer 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 homebuyer 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 clear title, it noted and allowed the petition of the developer.