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TN RERA Rejects Labour Shortage Excuse, Takes Action Against Delayed Project

Apr 10 2026

TN RERA Rejects Labour Shortage Excuse, Takes Action Against Delayed Project

The State Real Estate Regulatory Authority has observed that labor shortages, material constraints, and approval-related issues cannot be accepted as valid reasons for project delays. The authority held the developer in violation for cancelling an allotment and subsequently reselling the same unit. The Authority directed the developer to allot the buyer a comparable apartment within the same project, ensuring that the specifications, terms, and pricing remain identical to those agreed upon at the time of the original booking. According to the order, the buyer had booked the apartment in March 2021 after being assured that possession would be handed over on or before 30 June 2021. Based on this assurance, the buyer paid the booking amount, followed by a substantial further payment in line with the agreed construction-linked payment schedule under the agreement executed in March 2021. The Authority stated that it is the sole responsibility of the developer to arrange adequate labor, procure construction materials, and obtain all necessary statutory approvals. It further noted that since the project was already registered with the regulatory authority, all required approvals should have been secured prior to launching the project. The Authority concluded that the reasons cited for the delay were unconvincing and amounted to mere excuses. As the buyer had complied with the payment obligations under the agreement, the developer was held fully responsible for the delay in handing over possession of the apartment.

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