Circular No. TNRERA/3867/2024, Levy of Penalty for Plot or 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 stated in the circular, or 2% of the proportionate project cost for a plot and 1% for a flat, whichever is higher.
What the circular governs
Circular No. TNRERA/3867/2024 of the Tamil Nadu Real Estate Regulatory Authority applies when a plot or flat is sold before registration with the authority, in contravention of Section 3 of the Real Estate (Regulation and Development) Act, 2016. It establishes location based penalty amounts and a separate calculation based on proportionate project cost.
The circular is relevant to anyone dealing with a plot or flat that was sold before registration with the Tamil Nadu Real Estate Regulatory Authority. It does not identify in the supplied text which person must pay the penalty.
Penalty calculation
The Tamil Nadu Real Estate Regulatory Authority will levy whichever of the following is higher:
- The fixed amount for the relevant jurisdiction.
- For plots, 2% of the proportionate project cost.
- For flats, 1% of the proportionate project cost.
The fixed amount applies per plot or flat.
Location based amounts
Circular No. TNRERA/3867/2024 sets the following amounts:
- Greater Chennai Corporation: Rs.15,000 per plot or flat.
- Municipalities, town panchayats and listed panchayat union areas around Greater Chennai Corporation: Rs.10,000 per plot or flat.
- Municipal corporations adjoining Greater Chennai Corporation and other major corporations: Rs.12,000 per plot or flat.
- All other municipal corporations: Rs.10,000 per plot or flat.
- Other municipalities: Rs.6,000 per plot or flat.
- Other town panchayats: Rs.4,000 per plot or flat.
- Other village panchayats: Rs.3,000 per plot or flat.
Specifically listed areas
The Rs.10,000 category around Greater Chennai Corporation includes Kundrathur, Poonamallee, Mangadu, Thiruverkadu and Thirunindravur municipalities, Thirumazhisai and Naravarikuppam town panchayats, specified villages in Kundrathur, Villivakkam and Poonamallee panchayat unions, and all villages in St. Thomas Mount and Kattankolathur panchayat unions.
The Rs.12,000 corporation category lists Madurai, Coimbatore, Tiruchirapalli, Salem, Erode, Tiruppur, Avadi, Tambaram, Vellore, Tirunelveli, Thanjavur and Thoothukudui. The Rs.10,000 other corporation category lists Dindigul, Hosur, Nagerkoil, Cuddalore, Kancheepuram, Karur, Sivakasi, Kumbakonam, Karaikudi, Namakkal, Pudukottai and Thiruvannamalai.
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 sold before TNRERA registration?
The penalty is the fixed amount for the relevant jurisdiction or 2% of the proportionate project cost, whichever is higher.
What is the penalty for a flat sold before TNRERA registration?
The penalty is the fixed amount for the relevant jurisdiction or 1% of the proportionate project cost, whichever is higher.
Does the fixed penalty apply once to the whole project?
No. Circular No. TNRERA/3867/2024 states that the fixed amount applies per plot or flat.
What amount applies within Greater Chennai Corporation?
The fixed amount is Rs.15,000 per plot or flat, but the project cost based calculation applies instead if it produces a higher penalty.
