- Developer to register their projects with the authority detailing all aspects of the project.
- Promoter to pay a penalty of Repo Rate plus 2% in case of a default.
- Any refund shall be made within 45 days to the buyer.
- Jail term for developer, but offence can be compunded by paying a fine of 10%.
- Registration with the authority mandatory for the Real Estate Agents.
Chennai: The Tamil Nadu Government has put out its draft Real Estate Regulation Rules for public comments. This is after the Centre had passed the act in 2016 and directed the states to frame their own rules.
In line with the central act, the rules make it mandatory for a developer to register their projects with the authority detailing all aspects of the project. The authority will also have an exclusive website, where profile and track record of promoters and litigations over their real estate projects would be uploaded
As per the act, an ‘ongoing project means a project where development is going on and for which completion certificate has not been issued, but excludes such projects
Which fulfill any of the following criteria on the date of notification of these rules:
(i) Where services have been handed over to the Local Authority for Maintenance; or
(ii) Where common areas and facilities have been handed over to the Association or the Residents’ Welfare Association for maintenance; or
(iii) Where all development works are complete and application or intimation Letter has been submitted with the competent authority for obtaining Completion certificate
The rate of interest payable by the promoter to the allottee or by the allottee to the promoter, as the case may be, shall be the Repo rate of Reserve Bank of India plus two per cent.
Any refund with applicable interest and compensation payable by the developer shall be made within 45 days to the buyer from the date on which such refund becomes due.
Default in repayment by developers will be is liable for prosecution under the Indian Penal Code. However, the offence can be compounded and offenders can be released from custody if 10% of the estimated cost of the real estate project (or plot in some cases) is paid as a penalty. The Draft rules say court proceedings cannot be initiated against the builder after he or she is set at liberty, in the light of penalty
The Tamil Nadu Real Estate (Regulation and Development) Rules, 2016 also makes registration of real estate agents mandatory.
The promoter, the consumer or the real estate agent shall comply with the orders of the authority or appellate tribunal within the period specified by the court, which shall not be more than 30days from the date of compounding of the offence
However, there is no clarity on single window approval processes as demanded by the developer’s community in the draft rules.
Edited By: Saurabh Chakravertty