Own Use Projects Not Registered with TNRERA

What the guidance covers

The Tamil Nadu Real Estate Regulatory Authority published a list of buildings for which it had advised the promoters to apply for project registration because the buildings fell within the scope of the Real Estate (Regulation and Development) Act, 2016. The owners or promoters replied that the buildings were intended for their own use and were not being offered for sale to the general public.

Based on those replies, the Tamil Nadu Real Estate Regulatory Authority did not register the listed buildings. The guidance warns that the promoters or developers are not authorised to sell or lease any space in these projects under Section 3 of the Real Estate (Regulation and Development) Act, 2016.

Who may be affected

The Tamil Nadu Real Estate Regulatory Authority guidance is relevant to:

• Anyone considering buying or leasing space in one of the listed buildings.
• Owners and promoters who represented that their buildings were for their own use.
• Property professionals checking whether space in a listed project may be marketed, sold or leased.
• Members of the public dealing with an applicant, promoter or site identified in the list.

Key points

• The Tamil Nadu Real Estate Regulatory Authority had issued registration notices to the promoters because the buildings were considered to fall within the scope of the Act.
• The owners or promoters stated that the buildings were for their own use and not for sale to the public.
• The listed projects were therefore not registered with the Tamil Nadu Real Estate Regulatory Authority.
• The promoters and developers are not authorised to sell or lease any space in the listed projects.
• The list identifies each project by applicant name and address, together with the site address and available survey, town survey, block, plot, door or village details.
• Most listed sites are in Chennai localities, including T. Nagar, Mylapore, Anna Nagar, Egmore, Alwarpet, Thiruvanmiyur, Velachery and other areas. The supplied list also includes a site in Sathamangalam Village within Madurai Corporation.

Practical significance

A claim that a listed building is for personal or own use does not make its space available for public sale or lease. The Tamil Nadu Real Estate Regulatory Authority expressly tells the public that promoters and developers of these unregistered projects cannot sell or lease space in them.