Circular No. TNRERA/A2/2761/2025-2, Extension of Real Estate Project Validity and Extension Fee
The Tamil Nadu Real Estate Regulatory Authority issued Circular No. TNRERA/A2/2761/2025-2 dated 4 August 2025, fixing the periods and fees for extending real estate project validity. It partially modifies Circular No. TNRERA/A2/4406/2024 dated 11 December 2024 and takes immediate effect.
What the circular governs
The Tamil Nadu Real Estate Regulatory Authority issued Circular No. TNRERA/A2/2761/2025-2 dated 4 August 2025 to guide decisions on applications for extending the validity of registered real estate projects. It specifies the maximum extension periods and the fees payable for extensions under Sections 6 and 7(3) of the Act.
The circular partially modifies Circular No. TNRERA/A2/4406/2024 dated 11 December 2024. It states that the revised requirements take immediate effect.
Extension periods and fees
Circular No. TNRERA/A2/2761/2025-2 provides the following:
- An extension under Section 6 due to force majeure may be granted for a maximum of one year. The extension fee is 10 percent of the registration fee initially paid.
- A first extension under Section 7(3) may be granted for one year if no extension was previously given under Section 6. It is also subject to any terms and conditions considered appropriate by the Tamil Nadu Real Estate Regulatory Authority. The fee is 20 percent of the registration fee initially paid.
- A second or subsequent extension under Section 7(3) may be granted for six months at a time. Each request is considered on its merits and may be subject to conditions intended to protect the project and its allottees.
- The fee for every second or subsequent extension under Section 7(3) is 20 percent of the registration fee initially paid, regardless of the duration granted.
Projects previously extended for force majeure
Circular No. TNRERA/A2/2761/2025-2 limits an extension under Section 7(3) to six months at a time when the project registration has already been extended under Section 6.
The Tamil Nadu Real Estate Regulatory Authority may nevertheless consider an extension exceeding six months under Section 7(3) when required for project completion and in the interest of allottees. In such cases, the Authority will decide the extension fee.
Who is affected
The circular directly affects promoters seeking more time to complete a registered project. It also affects allottees and home buyers because the Tamil Nadu Real Estate Regulatory Authority may impose further conditions, allow the registration to remain in force, or revoke the registration based on their interests.
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Common questions
What fee applies to a force majeure extension?
An extension under Section 6 due to force majeure carries a fee of 10 percent of the registration fee initially paid and may be granted for up to one year.
Can a promoter receive a one-year first extension under Section 7(3)?
Yes, provided the project has not already received an extension under Section 6. The fee is 20 percent of the registration fee initially paid, and the Tamil Nadu Real Estate Regulatory Authority may impose terms and conditions.
How long can later extensions under Section 7(3) last?
Second and subsequent extensions may be granted for six months at a time based on the merits of the case. Each extension costs 20 percent of the registration fee initially paid, regardless of its duration.
Can the Authority grant more than six months after a Section 6 extension?
The normal limit is six months at a time. The Tamil Nadu Real Estate Regulatory Authority may consider a longer period for project completion and in the interest of allottees, with the fee decided by the Authority.
