Circular No.TNRERA/A2/4406/2024, Extension of Real Estate Project Validity and Extension Fee
TNRERA, through Circular Number TNRERA/A2/4406/2024 dated 11 December 2024, sets the maximum periods and fees for extending the validity of real estate project registrations. Issued by the Chairperson of TNRERA with immediate effect, it supersedes Circular Number TNRERA/A2/4406/2024 dated 20 November 2024.
What the circular governs
Circular Number TNRERA/A2/4406/2024 dated 11 December 2024 governs requests to extend the validity period of registered real estate projects. It specifies the maximum extension periods and the fees calculated from the registration fee initially remitted.
The circular affects registered projects seeking more time, including extensions caused by force majeure. It is also relevant to allottees and home buyers because TNRERA may impose conditions or revoke a registration in their interest.
Extension periods and fees
The extension guidelines are:
- Extension under Section 6 due to force majeure: A maximum extension of one year may be granted. The fee is 10 percent of the registration fee initially remitted.
- First extension under Section 7(3): A maximum extension of one year may be granted only if no extension was given under Section 6. The extension is subject to terms and conditions that TNRERA considers appropriate. The fee is 20 percent of the registration fee initially remitted.
- Second and subsequent extensions under Section 7(3): Extensions may be granted for six months at a time, based on the merits of the case. TNRERA may impose terms and conditions in the interest of the project and the allottees. The fee for each extension is 20 percent of the registration fee initially remitted, regardless of the duration granted.
Projects already extended for force majeure
Circular Number TNRERA/A2/4406/2024 limits any later extension under Section 7(3) to six months at a time when the project registration has already received an extension under Section 6. This means such a project cannot receive the one year first extension otherwise described for Section 7(3).
TNRERA's powers and commencement
Circular Number TNRERA/A2/4406/2024 states that TNRERA may revoke a project registration or allow it to remain in force subject to further terms and conditions. Any such conditions may be imposed in the interest of allottees and home buyers.
The circular was issued with immediate effect by the Chairperson of TNRERA on 11 December 2024. It replaces the earlier circular dated 20 November 2024.
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
How much is the fee for a force majeure extension?
An extension under Section 6 due to force majeure costs 10 percent of the registration fee initially remitted. The maximum extension is one year.
Can a project get a one year extension under Section 7(3) after receiving a Section 6 extension?
No. If the registration was already extended under Section 6, any extension under Section 7(3) is limited to six months at a time.
What is charged for a second or later extension?
Each second or subsequent extension under Section 7(3) costs 20 percent of the registration fee initially remitted, irrespective of the duration granted. Extensions are limited to six months at a time and depend on the merits of the case.
Can TNRERA impose additional conditions or revoke the project registration?
Yes. TNRERA may revoke the registration or permit it to remain in force with further terms and conditions imposed in the interest of allottees and home buyers.
