Circular No. TNRERA/A2/4406/2024, Extension of Real Estate Project Validity and Extension Fee
The Tamil Nadu Real Estate Regulatory Authority issued Circular Number TNRERA/A2/4406/2024 on 11 December 2024, fixing the maximum periods and fees for extending real estate project registrations under Sections 6 and 7(3) of the Act. The circular took immediate effect and superseded Circular Number TNRERA/A2/4406/2024 dated 20 November 2024.
What the circular governs
Circular Number TNRERA/A2/4406/2024, issued by the Tamil Nadu Real Estate Regulatory Authority on 11 December 2024, sets guidelines for considering requests to extend the validity of real estate project registrations. It specifies the maximum extension period and the fee payable for each type of extension.
The circular is relevant to registered real estate projects seeking more time, as well as allottees and home buyers whose interests may be considered when an extension is granted.
Extension periods and fees
The Tamil Nadu Real Estate Regulatory Authority has fixed the following terms:
- An extension under Section 6 due to force majeure may be granted for up to one year. The fee is 10 percent of the registration fee initially paid when the project was registered.
- A first extension under Section 7(3) may be granted for up to one year only if no extension has already been given under Section 6. The fee is 20 percent of the registration fee initially paid. The Authority may impose terms and conditions.
- A second or later extension under Section 7(3) may be granted for six months at a time, depending on the merits of the case. Each extension costs 20 percent of the registration fee initially paid, regardless of the duration granted.
Limits and Authority powers
Circular Number TNRERA/A2/4406/2024 places an additional limit on projects that have already received an extension under Section 6. Any later extension under Section 7(3) is limited to six months at a time.
For second and later extensions under Section 7(3), the Tamil Nadu Real Estate Regulatory Authority may impose terms and conditions in the interests of the project and the allottees. The Authority also reserves the right to revoke a project registration or allow it to remain in force subject to further terms and conditions considered necessary in the interests of allottees and home buyers.
Status of earlier guidance
Circular Number TNRERA/A2/4406/2024 dated 11 December 2024 supersedes the circular bearing the same number dated 20 November 2024. The replacement circular states that it takes immediate effect.
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Common questions
What fee applies to a force majeure extension?
An extension under Section 6 due to force majeure costs 10 percent of the registration fee initially paid. The maximum extension period is one year.
Can a project get a one-year extension under Section 7(3) after receiving a Section 6 extension?
No. If the project registration has already been extended under Section 6, an extension under Section 7(3) is limited to six months at a time.
How much does a second or later extension cost?
Each second or later extension under Section 7(3) costs 20 percent of the registration fee initially paid, regardless of the duration of the extension.
Does an extension guarantee that the project registration will remain valid?
No. The Tamil Nadu Real Estate Regulatory Authority may revoke the registration or allow it to continue subject to further terms and conditions imposed in the interests of allottees and home buyers.
