Tamil Nadu Real Estate Regulatory Authority Annual Report & Audit Report, 2017-2018
The Tamil Nadu Real Estate Regulatory Authority issued its Annual Report for 2017-2018, together with a separate audit report by the Comptroller and Auditor General of India, covering project and agent registration, complaints, enforcement and finances. It reports implementation of the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, issued by the Housing and Urban Development Department through G.O. Ms. No. 112 dated 22 June 2017. The audit records that the financial statements were revised, reducing the reported excess of income over expenditure by ₹11,71,469, and that the revised statements were approved on 19 October 2020.
What the report covers
The Tamil Nadu Real Estate Regulatory Authority Annual Report for 2017-2018 describes how the Real Estate (Regulation and Development) Act, 2016 was implemented across Tamil Nadu. The Tamil Nadu Real Estate Regulatory Authority had jurisdiction over the entire state, while the Tamil Nadu Real Estate Appellate Tribunal heard appeals against decisions or orders of the Authority and the Adjudicating Officer.
The Housing and Urban Development Department issued the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017 through G.O. Ms. No. 112 dated 22 June 2017. The report records the Authority's registration, complaint handling, monitoring and enforcement work rather than introducing new requirements.
Who may be affected
The reported requirements are relevant to promoters, builders, real estate agents and buyers in Tamil Nadu. They particularly affect projects intended for sale where the land proposed for development exceeds 500 square metres or the number of apartments exceeds eight, including all phases.
Key requirements described in the report include:
- A promoter cannot advertise, market, book, sell or offer property in a project within a planning area without project registration.
- Each phase of a phased development must be registered separately.
- Advertisements must prominently state the Authority's website and the project's registration number.
- Property must be advertised and sold based on carpet area.
- Changes to plans, structural design or specifications require consent from at least two-thirds of the allottees.
- Seventy per cent of money collected from allottees for a project must be held in a separate scheduled bank account and used for that project.
- Promoters must provide a five-year warranty for structural defects.
- Buyers must make payments on time, and promoters and buyers are liable to pay an equal rate of interest for their respective defaults.
Registration and enforcement results
As of March 2018, the Tamil Nadu Real Estate Regulatory Authority had registered 415 projects and 243 agents. It had passed a final order in one complaint, while 205 complaints were being heard.
The Authority issued 1,180 notices to promoters for failure to register projects and imposed penalties in 24 cases. It also issued 136 notices where advertisements did not contain Tamil Nadu Real Estate Regulatory Authority registration particulars.
Audit findings
The Comptroller and Auditor General of India reported that the accounts gave a true and fair view, subject to the matters identified in the audit. The audit found no internal audit system, no physical verification of fixed assets for 2017-2018 and no physical verification of inventory. It also found that internal controls were adequate and statutory dues were deposited regularly.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does every real estate project in Tamil Nadu need registration?
The report says projects intended for sale must register where the proposed development land exceeds 500 square metres or the number of apartments exceeds eight, including all phases. Each phase of a phased project is treated as a separate project and requires separate registration.
What registration details should I look for in a property advertisement?
The advertisement or prospectus should prominently mention the Tamil Nadu Real Estate Regulatory Authority website and the registration number obtained from the Authority.
Can a promoter change an approved plan without consulting buyers?
The report says additions, revisions or modifications to plans, structural design or specifications require consent from at least two-thirds of the allottees.
Does the report provide protection against structural defects?
Yes. It states that the builder must provide a five-year warranty for structural defects in the building.
