CHENNAI: Tamil Nadu Real Estate Regulatory Authority (TNRERA) is facing a new challenge after a spurt in applications for registration of layouts, including those under the regularised scheme, over the last two months. The number of applications rose after sub-registrar offices were directed last December to insist on proof of registration with TNRERA before registering the plots.
Around 1,000 applications for registration of layouts are pending with TNRERA, according to sources. While developers complain of the delay in clearing the backlog, TNRERA officials blame the developers for failing to register their layouts with it under Section 3 (1) of the Real estate (Regulation and Development) Act 2017.
It was on September 4, 2020, when the then chief secretary directed the Inspector general of registration to instruct sub-registrars to register plots after getting proof of registration with TNRERA. But, it was made mandatory only in December.
According to the Act, all promoters will have to register their projects with TNRERA when the land proposed to be developed exceeds 500 square metres or the number of apartments proposed to be developed exceeds eight.
The promoters have also to register the layouts, including the layouts regularised under regularisation schemes announced by the state government. This came after it was found that the number of layouts registered with TNRERA do not match with regularised or approved layouts of Chennai Metropolitan Development Authority and Directorate of Town and Country Planning.
This could impact the general public who buy plots in these layouts as they may not be in a position to claim compensation or refund from the erring promoters.
A top official from TNRERA said it has been made mandatory under the Act since 2017 to register layouts with TNRERA. In 2020, the then state government had asked it to be made mandatory. Now that the registration department is insisting on proof of registration of layouts with TNRERA since last December, the developers and promoters are forced to come to TNRERA as the plots could not be registered without its approval. This has resulted in a spurt which we are trying to handle, the official added.
"In 2020, we cleared 750 applications. In 2021, the number reached 972. However, from January 1, 2022 to March 8, 2022 alone, we cleared around 900 applications(both building and layouts). This excludes registration of regularisation of unapproved layouts. In the last three months alone, we have registered around 1,000 such layouts (regularisation of unapproved layouts)," a top TNRERA official told TNIE.
"In the interest of homebuyers, we have to verify the layouts and ensure all documents are in place. We are planning to clear the applications in the next two months and have recruited additional data entry operators," the official added.
Interestingly, TNRERA is busy registering unapproved layouts that have been regularised. "We have been able to clear 1,000 such applications in the last two months. We are simultaneously doing both the registrations (registration of regularised unapproved layouts as well as the usual layouts). Even in this regularisation of unapproved layouts, the promoters were not coming to us. Now, after the government made it mandatory, they are also coming to us. We have simplified the procedure for them as a one time measure," the official added.
However, Builders Association of India (BAI) state treasurer S Ramaprabhu told TNIE that the association members across the State have been complaining about the delay in registering the layouts and the issue could be raised during a three-day convention, being organised in Mahabalipuram this week, where Chief Minister M K Stalin is expected to take part.
"We will be raising the grievances with the Chief Minister and seeking speedy disposal of registration of layouts," he said.