TNRERA Allows Additional Units
Landowner can't oppose extra units if undivided share is unchanged.
Once a builder is given full rights to develop a property through a joint agreement, the landowner cannot object to additional flats being built later, as long as the builder does not exceed their legal share of the land, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ruled.
TNRERA stated that if the landowner authorizes the builder to develop the property “at their own discretion,” the builder gains full control over development. This means the landowner cannot later question the number of flats, as long as the builder stays within the agreed land share and legal building limits.
The case involved a complaint by a landowner who had entered a joint venture agreement in 2018 with a builder to complete an apartment project within 18 months. The agreement mentioned six flats, but the landowner claimed the builder was advertising eight flats instead.
She also said that the delay in handing over the flats was due to a legal case and requested TNRERA to stop further construction, claiming the building plan had changed. The builder, responded that the project had been delayed because of the COVID-19 lockdown, but construction had since resumed and was nearly complete.
The builder clarified that only six flats had been built so far, and two more would be added only after getting the necessary approvals. They also stated they were not required to get the landowner’s permission for building additional flats, as long as the agreed land share and promised built-up area for the landowner were not affected.
TNRERA agreed with the builder, pointing out that the landowner had given the builder full authority through a power of attorney to develop the property as they saw fit. An undivided share of 1,640 sq ft was also given to the builder, allowing them to construct flats as per the allowable FSI (Floor Space Index).
However, the authority added that if the landowner wants compensation or interest for delays, they are free to file a complaint with the adjudicating officer of TNRERA.