Tamil Nadu Real Estate Regulatory Authority (TNRERA) Annual Report & Audit Report, 2018-2019
The Tamil Nadu Real Estate Regulatory Authority issued the Annual Report & Audit Report, 2018-2019 to record its project registration, agent registration, complaint handling, enforcement and financial performance for that year. It describes implementation of the Real Estate (Regulation and Development) Act, 2016 under the rules issued by the Housing and Urban Development Department through G.O.Ms.No.112 dated 22 June 2017. The annual financial statements were later revised and approved by the Authority on 19 October 2020.
What the report covers
The Tamil Nadu Real Estate Regulatory Authority Annual Report & Audit Report, 2018-2019 is an account of the Authority's regulatory and financial work, rather than a new approval for any land or project. The Authority has jurisdiction across Tamil Nadu and registers real estate projects and agents, decides complaints and monitors compliance. The Tamil Nadu Real Estate Appellate Tribunal hears appeals against decisions or orders of the Authority and the Adjudicating Officer.
The report explains implementation of the Real Estate (Regulation and Development) Act, 2016 and the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017. The Housing and Urban Development Department issued those rules through G.O.Ms.No.112 dated 22 June 2017.
Who may be affected
The requirements described in the report affect promoters, developers, real estate agents and buyers. Projects meant for sale anywhere in Tamil Nadu must be registered where the proposed development exceeds 500 square metres or contains more than eight apartments, including all phases. Each phase of a phased development is treated as a separate project requiring registration.
Buyers can check whether advertisements display the Authority's website address and the project's registration number. The report also records that sales and advertisements must use carpet area.
Key requirements described
- A promoter cannot advertise, market, book, sell or invite purchases in a project requiring registration before registering it.
- Promoters must publish project plans, layouts, government approvals, land title status, contractor details and the completion schedule on the Authority's website.
- 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. Withdrawals must match certified progress.
- Buyers must make payments on time. Promoters and buyers are liable to pay an equal rate of interest for their respective defaults.
- Builders must provide a five-year warranty for structural defects.
Performance and enforcement
As of March 2019, the Authority had registered 511 projects and 237 agents. It had passed final orders in 56 complaints, while the Adjudicating Officer had passed final orders in 161 compensation complaints.
The Authority issued 788 notices concerning unregistered projects and 90 notices concerning advertisements that omitted registration particulars. Penalties totalling Rs.35,000.00 were imposed in two cases. Planning authorities were also directed through G.O.(Ms.) No.166, Housing and Urban Development Department, dated 29 November 2018, to include applicable registration conditions in approvals and verify registration when issuing completion certificates.
Audit revision
The annual financial statements approved on 6 January 2020 were revised following the separate audit report. The revision reduced the reported excess of income over expenditure by Rs.40,38,720, and the revised statements were approved on 19 October 2020.
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Common questions
Does every real estate project in Tamil Nadu need registration?
The report says projects meant for sale must register when the proposed land development exceeds 500 square metres or the number of apartments exceeds eight, including all phases. Each phase is treated as a separate project.
What should I check in a property advertisement?
The advertisement should prominently state the Tamil Nadu Real Estate Regulatory Authority website address and the project's registration number. The report records that notices were issued when advertisements omitted registration particulars.
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 show how many complaints were decided?
As of March 2019, the Tamil Nadu Real Estate Regulatory Authority had passed final orders in 56 complaints. The Adjudicating Officer had passed final orders in 161 complaints seeking compensation.
