Circular No.TNRERA/A3/1677/2025, Registration of real estate projects (Layouts and Sub Divisions), On-going Developments, collection of Security Deposit
The Tamil Nadu Real Estate Regulatory Authority issued Circular No.TNRERA/A3/1677/2025 dated 7 May 2025, requiring promoters of ongoing layout and subdivision developments to pay a refundable, non interest earning security deposit to support completion of development works and compliance with approval conditions. A further circular issued by the Tamil Nadu Real Estate Regulatory Authority on 15 May 2025 states that the requirement comes into force on 1 June 2025.
What the circular governs
Circular No.TNRERA/A3/1677/2025 dated 7 May 2025 applies to ongoing layout and subdivision projects registered by the Tamil Nadu Real Estate Regulatory Authority. These are projects where development works remain in progress and the promoter has declared a future completion date in Form-B.
The security deposit is intended to help ensure that promoters:
- Complete the development works.
- Meet conditions imposed by the planning authority and local body.
- Comply with requirements of No Objection Certificate agencies.
The Tamil Nadu Real Estate Regulatory Authority circular dated 15 May 2025 makes the security deposit requirement effective from 1 June 2025.
Who is affected
Promoters of all ongoing layout and subdivision developments must pay the refundable security deposit. Buyers do not pay the deposit under the circular, but the requirement is described as a public interest measure intended to support completion and compliance.
For calculating layout extent, the total includes common areas and land donated to a local body, Tamil Nadu Generation and Distribution Corporation Limited, or other bodies.
Security deposit amounts
The Tamil Nadu Real Estate Regulatory Authority sets the following slabs based on layout extent or project cost:
- Up to 1 acre, or project cost up to Rs.1 crore: Rs.1 lakh.
- More than 1 acre and up to 5 acres, or project cost above Rs.1 crore and up to Rs.5 crore: Rs.5 lakh.
- More than 5 acres and up to 10 acres, or project cost above Rs.5 crore and up to Rs.10 crore: Rs.10 lakh.
- More than 10 acres, or project cost above Rs.10 crore: Rs.20 lakh.
The examples show that a 0.75 acre layout costing Rs.1.5 crore attracts Rs.5 lakh, while a 6 acre layout costing Rs.5 crore attracts Rs.10 lakh.
Completion and refund
The Tamil Nadu Real Estate Regulatory Authority will issue a Completion Report and refund the security deposit after:
- Development works are completed.
- Planning authority and local body conditions are met.
- A certificate is furnished by the architect or engineer involved in the project.
The Authority may inspect the site before issuing the Completion Report and releasing the deposit. After refund approval, the Accounts Officer of the Tamil Nadu Real Estate Regulatory Authority must transfer the deposit online without interest and record the transaction in the system.
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
When did the security deposit requirement take effect?
The Tamil Nadu Real Estate Regulatory Authority circular dated 15 May 2025 states that the requirement comes into force on 1 June 2025.
Does a buyer have to pay this security deposit?
No. Circular No.TNRERA/A3/1677/2025 requires the deposit to be collected from promoters of ongoing developments.
Is common area included when calculating the layout extent?
Yes. Layout extent includes common areas and land donated to a local body, Tamil Nadu Generation and Distribution Corporation Limited, or other bodies.
Will the promoter receive interest when the security deposit is refunded?
No. The security deposit is refundable without interest after completion requirements are met and the Tamil Nadu Real Estate Regulatory Authority orders the refund.
