TAMIL NADU RERA(GENERAL) REGULATIONS, 2018

Introduction

The Real Estate (Regulation and Development) Act of 2016 seeks to control and promote the
real estate sector by governing transactions between purchasers and promoters of both
residential and commercial projects. It also includes provisions for the establishment of a
state-level regulatory entity known as the 'Real Estate Regulatory Authority' (RERA) to
regulate the real estate sector and adjudicate disputes connected to Real Estate Projects. The
Act's principal goal is to safeguard purchasers and encourage investment in the real estate
sector. Furthermore, it strives to make transactions and information delivery within the real
estate sector in the state as transparent and efficient as possible. TNRERA has jurisdiction
over Tamil Nadu, as well as Andaman and Nicobar Islands.

RERA makes registration of all Real Estate developments and Real Estate agents necessary. A
real estate project cannot be sold unless it has been registered with RERA. These Rules will
apply to all existing and prospective projects where the land size exceeds 500 square metres
or the number of flats scheduled to be created exceeds eight, including all phases.

Tamil Nadu Real Estate Regulatory Authority

In terms of RERA, Tamil Nadu is in responsible of the state of Tamil Nadu and the Andaman
and Nicobar Islands. The Tamil Nadu Government issued "The Tamil Nadu (Real Estate
(Regulation and Development) Rules, 2017" on June 22, 2017. The Central Government
issued Notification No. GSR 1020 (E) on October 31, 2016, establishing "The Andaman and
Nicobar Islands Real Estate (Regulation and Development) (General) Rules, 2016."

The Chairman and two members comprise the Tamil Nadu Real Estate Regulatory Authority.
In addition, one Adjudicating Officer has been selected.

The Tamil Nadu Real Estate Regulatory Authority issued the 'Tamil Nadu Real Estate
Regulatory Authority (General) Regulations, 2018' via Notification No. SRO C-13/2018 on
June 13, 2018.
Registration

The project is required to be registered under the Act along with the agent.

Registration of Project

In the Act and the rules created thereunder, the topic of project registration is covered in
depth. Following are the specifics of the registration cost for projects in Tamil Nadu -

o In the case of a group housing project, the fee is Rs. 5/- per square metre for projects
where the land area proposed to be developed does not exceed 1000 square metres; or
Rs. 10/- per square metre for projects where the land area proposed to be developed
exceeds 1000 square metres but does not exceed Rs. 5 lakhs.

o For projects including mixed-use construction (residential and commercial): Rs. 10/-
per square meter for projects where the estimated development area of the property
does not exceed 1,000 square meters; or Rs. 15/- per square metre for projects when
the area of land intended to be developed exceeds 1,000 square metres, but shall not
be more than Rs. 7 lakhs;

o When it comes to commercial initiatives – Rs. 20/- per square meter for projects
where the intended development area of the property does not exceed 1,000 square
metres; or Rs. 25/- per square meter for projects where the amount of land that will be
created will be greater than 1,000 square metres but not surpass Rs. 10 lakhs;

o In case of plotted development projects – Rs. 5/- per square meter, but shall not be
more than Rs. 2 lakhs.

Project Extension

o If submitted three months before the date on which the registration granted expires,
10% of the initial Project Registration cost will be forfeited.

o If not submitted within three months, an additional 10% of the project registration
price will be charged.
Registration of Agent

The charge for registering an agent is mentioned below-

• Rs. 10,000 in the case of an individual application.

• If the application is not an individual, the fee is Rs. 50,000.

Change of registration of project/agent

A cost of 2000 per transaction will be paid for any modifications made after the registration
certificate has been issued.

Registered projects

The information on projects that have been registered in Tamil Nadu and the Andaman &
Nicobar Islands is displayed in the table below by year.

Year Tamil Nadu Andaman and Nicobar

Islands

2017 280 0

2018 564 1
2019 492 0

2020 755 0
2021 104 0

22 projects have been rejected by the Regulatory Authority. 21 projects have been withdrawn
by the applicants themselves. 10 projects have been returned by the Authority.

Registered Agents

The Agents can register with the Authority on-online as well as off-line. 10 persons have
registered on line with the Authority as Agent. In the off-line mode the number of people
who have registered as agents are as follows-

Year Tamil Nadu Andaman and Nicobar

Islands

2017 185 9
 2018 206 6

2019 688 6

2020 240 0

Penalty

The Tamil Nadu RERA penalises individuals in the event of non-compliance with the
regulations that have been issued in 2018. 34 promoters were given show-cause notices by
the authority for not registering their projects with them. All the individuals(promoters) were
eventually awarded fines for the same.

Complaints to Tamil Nadu Real Estate Regulatory Authority

Here are the rules in case you wish to complain to the authority:

 Download Form M. After filling up the details, you will have to pay an online fee of
Rs 1,000.
 Submit not less than three copies of details of the complaint which needs to be
forwarded to the respondent along with proofs and documents duly attested on all
pages. You can send this to the authority as registered post or you could go to the
office.
 Note that the copies must reach the office within seven days of filing the complaint
online for Tamil Nadu-based cases and within 10 days for Andaman-based cases.
 Complaint can be presented by the complainant or by an advocate.
 The complainant must also pay a sum of Rs 600 online towards postal charges
incurred by the authority.

Caution to Public

TNRERA has sent notifications to the developers of 547 structures, asking them to submit
project registration applications since they are subject to TNRERA.

These buildings' owners and promoters responded by saying that they are only intended for
their personal use and not for sale to the general public. The aforementioned buildings are
thus not listed with TRERA. In accordance with Section 3 of the Real Estate (Regulation and
Development) Act of 2016, the promoters/developers of these projects are not permitted to
sell or lease any space in the project, the Authority advised the public to take note.

Advertisement

On November 22, 2018, the Regulatory Authority released Circular No. TRERA/7/2018
regarding the publication of advertisements in all media. According to the Circular, the
following information must be included in all advertisements:

 RERA registration number should be mentioned promptly;

 It is necessary to include the Tamil Nadu RERA website;
 There should be no disclaimer clause saying that the information is subject to change.
 If a completion certificate was earned prior to June 22, 2017, it must be included in the
advertisement.
 If a completion certificate was applied for prior to 22.06.2017 and was refused, the
promoters of such projects must apply for RERA registration.
 All regularised layouts with unsold plots must register with RERA.

Display Board and the Quarterly Report

The TNRERA number should be shown on the site's display board. The Authority must be
provided with quarterly progress reports on the registered project in CD.

Escrow Account

A Chartered Accountant in practise must audit the promoter's escrow account accounts within
six months of the end of each financial year. The promoter must provide a statement of
accounts that has been duly certified and signed by the Chartered Accountant, and it must be
confirmed during the audit that the funds collected for a given project have been used for the
project and withdrawals have been made in accordance with the proportion to the percentage
of completed projects. Only with the Authority's approval may the registered project's bank
account be transferred.

Complaint with Adjudicating Officer

According to Rule 37, anybody who feels they have been wronged may contact the
adjudicating officer to request compensation under

• Section 12 - Promoter's responsibility to ensure the accuracy of the advertisement or

prospectus;
 Section 14 - adherence to sanctioned plans and project specifications by the promoter;

 Section 18: Compensation and amount to be returned;

 Section 19 - rights and duties of allottees.

In Form N with a fee of Rs. 5000. Upon receiving a complaint, the adjudicating officer will
notify the respondent, conduct an investigation, and resolve the situation.

The Adjudicating Authority disposed-

 94 complaints in the year 2018;

 267 complaints in the year 2019;

 137 complaints in the year 2020; and

 58 complaints in the year 2021 (as on 24.02.2021).

Complaint with the Authority

Any aggrieved person may register a complaint with the Authority under Rule 37 for a breach
of the Act or the rules and regulations adopted thereunder, with the exception of those that
are specified to be decided by the Adjudicating Officer, in Form M and with a charge of Rs.
1000. The Authority disposed-

o 28 complaints in the year 2018;

o 71 complaints in the year 2019;

o 73 complaints in the year 2020; and

o 16 complaints in the year 2021 (as on 24.02.2021).

Appellate Tribunal

Anyone who feels wronged by a judgement, instruction, or order made by the Authority or an
adjudicating officer under this Act may appeal the decision to the relevant appellate tribunal.
A fee of Rs. 1000 must be paid online along with each appeal. Each appeal must be submitted
in Form L with the aforementioned supporting documentation.

o An attested copy of the order against which the appeal lies;

o Copies of documents relied upon by the appellant and referred to in appeal; and

o Index of the documents.

The Appellate Tribunal is comprised of a Chairperson, a Judicial Member, and an
Administrative Member. One Registrar is appointed for this purpose. Tamil Nadu Real Estate
Appellate Tribunal Regulations, 2019, were created by the Authority. Appellate Tribunal has
resolved 67 appeals (as of 24.02.2021).