Annual Report & Audit Report (2021-2022)
The Annual Report & Audit Report (2021-2022), issued by the Tamil Nadu Real Estate Regulatory Authority, records the Authority's project registration, agent registration, complaint handling, enforcement and financial performance for 2021-2022. It explains existing requirements affecting promoters, real estate agents and buyers across Tamil Nadu, rather than introducing new requirements. The separate audit report by the Comptroller and Auditor General of India is dated 25 September 2023 and covers the accounts for the year ended 31 March 2022.
What the report covers
The Tamil Nadu Real Estate Regulatory Authority Annual Report & Audit Report (2021-2022) describes how real estate regulation was administered across Tamil Nadu. The Authority registers real estate projects and agents and adjudicates complaints. The Tamil Nadu Real Estate Appellate Tribunal hears appeals against decisions or orders of the Authority and the Adjudicating Officer.
The report refers to 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.
Requirements relevant to buyers and promoters
The Annual Report & Audit Report (2021-2022) highlights these requirements:
- Projects intended for sale must register when the proposed development exceeds 500 square metres or exceeds eight apartments, including all phases.
- Each phase of a phased development is treated as a separate project and must be registered separately.
- Promoters must not advertise, market, book, sell or offer property in a registrable project within a planning area without registration.
- Advertisements must prominently show the Authority's website address and the project registration number.
- Property must be advertised and sold on a carpet area basis.
- A promoter needs consent from at least two-thirds of allottees for additions, revisions or modifications to plans, structural design and specifications.
- Seventy per cent of money collected from allottees for a project must be kept in a separate bank account and used for that project. Withdrawals must correspond to completion and be certified by an architect, engineer and practising chartered accountant.
- Builders 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 default.
Activity, enforcement and audit
The Tamil Nadu Real Estate Regulatory Authority registered 2,721 projects and 881 agents during 2021-2022. The Authority disposed of 225 cases, while the Adjudicating Officer disposed of 952 compensation complaints. Penalties totalling ₹2,07,91,087 were imposed in 468 cases.
The Authority issued notices for unregistered advertising and for advertisements missing registration details. Planning authorities checked registration when issuing completion certificates, while Sub Registrar Offices and banks were instructed or expected to insist on proof of registration in the circumstances described in the report.
The revised financial statements were approved on 16 August 2023. The revision increased excess income over expenditure by ₹65,63,177.
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
How can I tell whether a project must be registered with the Tamil Nadu Real Estate Regulatory Authority?
A project intended for sale must be registered if the proposed development exceeds 500 square metres or exceeds eight apartments, including all phases. Each phase is treated as a separate project.
What registration details should appear in a property advertisement?
The advertisement must prominently mention the Tamil Nadu Real Estate Regulatory Authority website address and the registration number obtained from the Authority.
Can a promoter change approved plans without consulting buyers?
For additions, revisions or modifications to plans, structural design and specifications, the promoter must obtain consent from at least two-thirds of the allottees.
Does the report say how buyers' payments must be handled?
Yes. Seventy per cent of money collected from allottees for a particular project must be kept in a separate bank account and used to meet that project's costs, with withdrawals linked to certified progress.
