Circular No.TNRERA/3867/2024, Levy of penalty for Plot / Flat sold before registration with TNRERA, Revised
The Chairperson of the Tamil Nadu Real Estate Regulatory Authority issued Circular No.TNRERA/3867/2024 on 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 the circular dated 13 November 2024, subject to a temporary arrangement for certain local bodies adjacent to specified municipal corporations.
What it governs
Circular No.TNRERA/3867/2024 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 affects real estate projects where such sales have occurred and determines the penalty according to location, project cost, sale value and the number of units sold.
Location based penalty
The Tamil Nadu Real Estate Regulatory Authority has regrouped local bodies and prescribed a penalty for each plot, flat or apartment:
- 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 in that area: Rs. 10,000.
- Madurai, Coimbatore, Tirupur, Salem, Tiruchirapalli, Tirunelveli, Erode, Vellore and Thoothukudi municipal corporations: Rs. 10,000.
- Municipalities, town panchayats and village panchayats adjacent to those nine corporations: Rs. 10,000, once the relevant list is separately notified.
- 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.
Until the adjacent local bodies are separately notified, their project penalties continue to use the applicable per unit rate under the circular dated 13 November 2024, together with the calculation and additional penalty provisions in Circular No.TNRERA/3867/2024 dated 10 September 2025.
How the penalty is calculated
Circular No.TNRERA/3867/2024 requires the penalty to be the highest of:
- The amount calculated using the location based rates.
- Two per cent of the proportionate project cost for plots, or one per cent for flats, sold without registration.
- Two per cent of the total sale value of the plots or flats sold without registration, as shown in the encumbrance certificate.
Additional penalty for multiple sales
Circular No.TNRERA/3867/2024 adds a further penalty where multiple plots, flats or apartments were sold in one project:
- For 10 to 50 units, an additional 50 per cent of the prescribed penalty.
- For more than 50 units, an additional 100 per cent of the prescribed 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
Which penalty amount applies if the location rate is lower than the project cost calculation?
The Tamil Nadu Real Estate Regulatory Authority must levy the highest amount produced by the three stated methods, including the location rate, the proportionate project cost calculation and the sale value calculation.
What is the penalty for an unregistered sale in Greater Chennai Corporation?
The location based rate is Rs. 15,000 for each plot, flat or apartment. The final penalty may be higher because the circular requires comparison with the project cost and sale value methods.
Is there an extra penalty when 10 or more units are sold without registration?
Yes. Sales of 10 to 50 plots, flats or apartments attract an additional 50 per cent of the prescribed penalty, while sales of more than 50 attract an additional 100 per cent.
Does the circular dated 10 September 2025 replace the earlier circular?
Yes. It supersedes Circular No.TNRERA/3867/2024 dated 13 November 2024, although the earlier table rates temporarily remain relevant for certain adjacent local bodies until their list is separately notified.
