TSRERA: Mother Filing Complaint Through Special Power Of Attorney Representing Homebuyer-Daughter, Will Be Considered Aggrieved Party

A special power of attorney (SPA) is a legal document that authorizes one person (Agent) to act on behalf of another (Principal).

Background Facts

The Complainant, acting as the representative of her daughter through a SPA dated 23.11.2023, purchased Flat No. 503 in the builder's project for a total consideration of Rs. 73,00,000.

During the sale of the flat, the Builder assured the presence of various amenities, including an exclusive car parking, lift, 24-hour power diesel generator backup, ground and municipal water, and three-phase power supply, along with a transformer for all homebuyers.

Subsequently, the Complainant's daughter entered into a Sale Agreement with the Builder on 28.07.2022, making an initial payment of Rs. 15,00,000 as an advance. The remaining amount of Rs. 58,00,000, out of the total sale consideration, was paid, leading to the execution of a registered Sale Deed on 09.11.2022.

Further, the complainant and her daughter shifted to their purchased flat on 21.12.2022. After shifting, they faced many problems with the flat, as there was no proper Housing Association. The amenities promised by the Builder at the time of purchase of the flat were not provided. Thereafter, the complainant approached the Builder to address the issues, however, they received no proper response from the Builder's side.

Furthermore, the complainant discovered that the Builder had significantly deviated from the original plan and failed to construct the apartment in accordance with the approved plan of the Greater Hyderabad Municipal Corporation (GHMC). As a result of these deviations, GHMC rejected the builder's application for an Occupancy Certificate for the project due to the negligent actions of the Builder.

Consequently, the Complainant filed a complaint before TSRERA, seeking stringent action against the Builder for negligence and compensation for damages in the interest of justice.

Contention of the Builder

The Builder contended that the Complainant lacks locus standi, asserting that she does not qualify as the "Homebuyer/allottee" defined under section 2(d) read with Section 31(1) of the RERA, 2016. Additionally, the Builder argued that the Complainant is neither the allottee nor the aggrieved person, as her elder daughter, Ms. Thota Asha Kiran Mayee, holds the allotment for Flat No. 503.

Furthermore, the Builder contended that the alleged deviations are minimal and insignificant, not warranting severe action from the authorities. Moreover, the Builder argued that despite the minor and negligible deviations, constituting less than 10% of the total constructed area, the rejection of the Occupancy Certificate occurred.

TSRERA Order

TSRERA held that the mother filing a complaint through the Special Power of Attorney (SPA) representing the daughter, who is the homebuyer, will be considered as a homebuyer and an aggrieved person as defined under Section 2(d), 2(zg)(i) read with Section 31(1) of the RERA, 2016.

TSRERA referred Section 2 of the Powers of Attorney Act, 1882, which is read as follows:

2. Execution under power-of-attorney

The donee of a power-of-attorney may, if he thinks fit, execute or do anyinstrument or thing in and with his own name and signature, and his own seal, where sealing is required, by the authority of the donor of the power; and every instrument and thing so executed and done, shall be as effectual in law as if it had been executed or done by the donee of the power in the name, and with the signature and seal, of the donor thereof.

Further, TSRERA directed the builder to complete the RERA registration within 30 days, obtain the Occupancy Certificate duly fulfilling the requirements in the GHMC rejection letter within 60 days, and construct an additional water tank which was promised to the homebuyer.

Case: Dr. N. Saraswathi representing Ms. Thota Kiran Mayee, through SPA Versus Sri K. Ramesh

Citation: Complaint No.1674 Of 2023

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