Tamil Nadu Real Estate Regulatory Authority Annual Report (2020-21)
The Tamil Nadu Real Estate Regulatory Authority issued the Annual Report for 2020-21, covering project and agent registrations, complaint disposal, enforcement, penalties and audited accounts across Tamil Nadu. It also summarises the regulatory duties affecting promoters, buyers and real estate agents. The annual financial statements were revised and approved by the Authority on 28 April 2022.
What the annual report covers
The Tamil Nadu Real Estate Regulatory Authority Annual Report for 2020-21 records how the Authority implemented the Real Estate (Regulation and Development) Act, 2016 across Tamil Nadu. The Authority registers real estate projects and agents and decides complaints. Appeals from the Authority and its Adjudicating Officer are heard by the Tamil Nadu Real Estate Appellate Tribunal.
The report refers to the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, issued by the Government of Tamil Nadu through the Housing and Urban Development Department under Government Order G.O.Ms.No.112, dated 22 June 2017.
Who may be affected
The regulatory requirements described in the annual report are relevant to:
- Promoters and builders advertising, marketing, booking or selling projects.
- Buyers and allottees purchasing plots, apartments or buildings.
- Real estate agents requiring registration.
- Professionals certifying project completion and withdrawals from project accounts.
- Banks, planning authorities and registration offices checking project registration.
Main requirements described
- Projects meant for sale 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 and requires separate registration.
- Project advertisements must prominently show the Authority's website address and project registration number.
- Advertising and sale must be based on carpet area.
- Additions or changes to plans, structural designs 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 kept in a separate scheduled bank account. Withdrawals must match the percentage of completion certified by an architect, engineer and practising chartered accountant.
- Promoters must publish information including plans, layouts, approvals, land title status, contractors and the completion schedule on the regulatory website.
- Builders must provide a five-year warranty for structural defects.
- Buyers are responsible for making payments on time. Promoters and buyers are liable to pay interest at an equal rate for defaults by either side.
Activity and enforcement
The annual return records 718 registered projects, 296 registered agents, 167 cases disposed of by the Authority and 120 cases disposed of by the Adjudicating Officer. A separate performance narrative states that 720 projects received registration.
The Authority reported 128 penalty cases, with penalties totalling Rs.1,11,59,000. It also monitored advertisements, issued notices where registration details were missing and conducted awareness programmes. The audit noted that the Authority had no internal audit system and had not physically verified fixed assets for 2020-21.
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 a real estate project in Tamil Nadu need registration with the Tamil Nadu Real Estate Regulatory Authority?
The report says projects meant for sale must register where the proposed land development exceeds 500 square metres or the project contains more than eight apartments, including all phases. Each phase of a phased project requires separate registration.
What should I check in a property advertisement?
The advertisement should prominently mention the Tamil Nadu Real Estate Regulatory Authority website address and the project's registration number. The Authority reported issuing notices when these details were not prominently displayed.
Can a promoter freely use money collected from buyers for another project?
No. The report says 70 per cent of money collected from allottees for a particular project must be kept in a separate scheduled bank account and used to meet that project's costs.
Do Sub Registrar Offices require proof of project registration for plots?
The report states that the Commercial Taxes and Registration Department instructed the Inspector General of Registration to direct Sub Registrar Offices to insist on proof of Tamil Nadu Real Estate Regulatory Authority registration before registering plots.
