CHENNAI: Chennai’s real estate loan exposure stands at nearly Rs 2.5 lakh crore, with the State Bank of India (SBI) accounting for nearly a third of the portfolio at Rs 89,000 crore, Tamil Nadu Real Estate Regulatory Authority (TNRERA) chairman Shiv Das Meena said on Saturday.
Speaking at the fourth edition of ‘Namma Dream Home Expo’ at Chennai Trade Centre, Meena urged lenders to tighten due diligence and sanction loans only to projects registered with TNRERA. He said 70% of loan proceeds must be credited to the project’s RERA escrow account and used exclusively for construction and project-related expenses to prevent diversion of funds.
“There have been instances where developers change bank accounts, bypassing safeguards. Such changes must receive prior approval from TNRERA,” Meena warned, pressing banks to conduct at least one site visit before disbursing loans.
He also issued a reminder to developers that advertisements and prospectuses must prominently display the project’s TNRERA registration number and the regulator’s website link, cautioning against misleading marketing practices.
Officials of the SBI, which organised the event, assured they would adhere to TNRERA guidelines.
The event was attended by S Sridharan, executive committee member, CREDAI National and chairman, Sabari Foundations Pvt Ltd; A. Mohamed Ali, president, CREDAI Chennai and managing director, South India Shelters Pvt. Ltd; S Sivagurunathan, former president, CREDAI Chennai; and SBI deputy general managers Rohit Kamal Shaha and Benudhar Parhi.