Circular No.TNRERA/3867/2024, Levy of penalty for Plot / Flat sold before registration with TNRERA, Revised Order
The Tamil Nadu Real Estate Regulatory Authority, through its Chairperson, issued Circular No.TNRERA/3867/2024 dated 10 September 2025, revising the penalties for plots, flats or apartments sold before project registration with the authority. The circular takes immediate effect and supersedes Circular No.TNRERA/3867/2024 dated 13 November 2024.
What the circular governs
Circular No.TNRERA/3867/2024 dated 10 September 2025 applies when plots, flats or apartments in a real estate project are sold without registration with the Tamil Nadu Real Estate Regulatory Authority, in violation of Section 3 of the Real Estate (Regulation & Development) Act, 2016. It determines the penalty by location, project cost, sale value and the number of units sold.
The circular affects promoters or others responsible for sales made before registration. Buyers and property professionals can use it to understand the possible regulatory consequences affecting a project.
Penalty based on location
The per plot, flat or apartment amounts are:
- Greater Chennai Corporation: Rs. 15,000.
- Chennai Metropolitan Area outside Greater Chennai Corporation, including Tambaram and Avadi Municipal Corporations and all municipalities, town panchayats and village panchayats within that area: Rs. 10,000.
- Madurai, Coimbatore, Tirupur, Salem, Tiruchirapalli, Tirunelveli, Erode, Vellore and Thoothukudi Municipal Corporations, and adjacent municipalities, town panchayats and village panchayats: Rs. 10,000.
- All other municipal corporations: Rs. 8,000.
- All other municipalities: Rs. 6,000.
- All other town panchayats: Rs. 4,000.
- All other village panchayats: Rs. 3,000.
The list of local bodies adjacent to the nine named municipal corporations will be notified separately. Until then, penalties for projects in those local bodies continue to be determined using the table in the circular dated 13 November 2024, subject to paragraphs 2 and 3 of the revised circular.
How the penalty is calculated
Circular No.TNRERA/3867/2024 requires the highest of these three calculations:
- The applicable location based amount.
- Two per cent of proportionate project cost for unregistered plots, or one per cent for unregistered flats.
- Two per cent of the total sale value of unregistered plots or flats shown in the encumbrance certificate.
Additional penalty for multiple sales
Circular No.TNRERA/3867/2024 adds:
- For 10 to 50 plots, flats or apartments, 50 per cent of the penalty calculated above.
- For more than 50 plots, flats or apartments, 100 per cent of that penalty.
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
Does the revised penalty apply immediately?
Yes. Circular No.TNRERA/3867/2024 dated 10 September 2025 states that it comes into force with immediate effect.
Is the penalty always limited to the amount listed for the local body?
No. The Tamil Nadu Real Estate Regulatory Authority will levy the highest of the location based amount, the applicable percentage of proportionate project cost, or two per cent of the sale value shown in the encumbrance certificate.
What happens if 10 or more units were sold before registration?
For 10 to 50 plots, flats or apartments, an additional penalty of 50 per cent applies. For more than 50, the additional penalty is 100 per cent.
Does the earlier circular dated 13 November 2024 still apply?
The revised circular supersedes it generally. However, pending separate notification of adjacent local bodies in category B(2), their penalties continue to use the earlier table, subject to paragraphs 2 and 3 of the revised circular.
