CHENNAI: The Tamil Nadu Real Estate Appellate Tribunal (TNREAT) has ruled that the Tamil Nadu Real Estate Regulatory Authority (TNRERA) doesn’t have the powers to act against builders for deviating from approved building plans and only the planning authority concerned can initiate action against such violations.
Setting aside a TNRERA order against Newry Properties Private Limited, the tribunal said the dispute concerned a statutory notice issued by the Chennai Metropolitan Development Authority (CMDA) and could not be adjudicated by TNRERA.
The case relates to alleged deviations from the approved plan at the Newry Shanmita commercial complex. The CMDA issued a Form-IV notice in January 2025, citing violations, including changes to the approved floor layout, double-ceiling height, and access arrangements in the commercial block. The complainants, who are buyers, approached TNRERA seeking revised planning approval, rectification of the alleged violations and physical access to the commercial block.
Hearing the case, in June 2026, TNRERA directed the promoter to comply with the CMDA’s directions within three months and pay `25,000 towards legal expenses. Challenging the order, Newry Properties argued that TNRERA lacked jurisdiction to adjudicate matters concerning orders issued by the CMDA.
Allowing the appeal, TNREAT, in its final order dated October 14, observed that the CMDA is the statutory planning authority under the Tamil Nadu Town and Country Planning Act, 1971. It held that TNRERA could not review, modify, or enforce orders issued by the CMDA.
The tribunal said the CMDA must take appropriate action under the planning law if the alleged deviations are established. It set aside TNRERA’s order directing the promoter to comply with the CMDA’s notice within three months.
TNREAT also allowed the complainants to withdraw the `25,000 deposited by the promoter towards litigation expenses, along with accrued interest, if any.