Circular No.TNRERA/3867/2024, Levy of penalty for Plot / Flat sold before registration with TNRERA
The Tamil Nadu Real Estate Regulatory Authority issued Circular No.TNRERA/3867/2024, dated 13 November 2024, fixing penalties for plots and flats sold before registration with the Authority. The penalty is the location based amount in the circular or 2% of the proportionate project cost for plots and 1% for flats, whichever is higher.
What the circular governs
Circular No.TNRERA/3867/2024 of the Tamil Nadu Real Estate Regulatory Authority sets the penalty for a plot or flat sold without registration with the Authority. It applies the listed amount according to the property jurisdiction, subject to a separate calculation based on the proportionate project cost.
The circular concerns sales that contravene the registration requirement under the Real Estate (Regulation and Development) Act, 2016. Buyers, owners and property professionals can use the location categories to understand the minimum listed amount relevant to a plot or flat sold before registration.
Location based penalty amounts
The penalty table fixes the following amounts for each plot or flat:
- Greater Chennai Corporation: Rs.15,000.
- Municipal corporations adjoining Greater Chennai Corporation and other major corporations: Rs.12,000. The listed corporations are Madurai, Coimbatore, Tiruchirapalli, Salem, Erode, Tiruppur, Avadi, Tambaram, Vellore, Tirunelveli, Thanjavur and Thoothukudui.
- All other municipal corporations: Rs.10,000. The circular lists Dindigul, Hosur, Nagerkoil, Cuddalore, Kancheepuram, Karur, Sivakasi, Kumbakonam, Karaikudi, Namakkal, Pudukottai and Thiruvannamalai.
- Other municipalities: Rs.6,000.
- Other town panchayats: Rs.4,000.
- Other village panchayats: Rs.3,000.
Areas around Greater Chennai Corporation
The penalty table places Rs.10,000 per plot or flat against the group covering specified areas around Greater Chennai Corporation. These include:
- Kundrathur, Poonamallee, Mangadu, Thiruverkadu and Thirunindravur municipalities.
- Thirumazhisai and Naravarikuppam town panchayats.
- Specified villages in Kundrathur, Villivakkam and Poonamallee Panchayat Unions.
- All villages in St. Thomas Mount Panchayat Union and Kattankolathur Panchayat Union.
The specified Panchayat Union locations include Iyyappanthangal, Moulivakkam, Vanagaram, Ayyapakkam, Parivakkam, Senneerkuppam, Nazarethpettai, Kattupakkam and other villages named in the circular.
How the final penalty is selected
Circular No.TNRERA/3867/2024 requires comparison of two figures. For plots, the location based amount is compared with 2% of the proportionate project cost. For flats, it is compared with 1% of the proportionate project cost. The higher figure is levied.
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
What is the penalty for a plot or flat sold without TNRERA registration in Greater Chennai Corporation?
The listed amount is Rs.15,000 per plot or flat. However, the higher amount applies after comparison with 2% of the proportionate project cost for a plot or 1% for a flat.
Does the same penalty apply across Tamil Nadu?
No. Circular No.TNRERA/3867/2024 sets different listed amounts according to whether the property is in Greater Chennai Corporation, another corporation, a municipality, a town panchayat or a village panchayat.
What amount applies in other village panchayats?
The listed amount is Rs.3,000 per plot or flat. The final penalty will instead be the applicable percentage of proportionate project cost if that calculation produces a higher figure.
How is the project cost percentage calculated for plots and flats?
The circular specifies 2% of the proportionate project cost for plots and 1% for flats sold without registration with the Tamil Nadu Real Estate Regulatory Authority. The circular does not provide a further calculation method in the supplied text.
