TNRERA slowly asserting its authority
The real estate regulator asks AWHO to get its project in Coimbatore registered
The Tamil Nadu Real Estate Regulatory Authority (TNRERA), which started functioning since late June 2017 without a full-fledged chairperson, has begun making its presence felt in the real estate sector.
Its latest order of November 8, concerning a housing project in Coimbatore, illustrates that it is gradually bringing under its scanner different projects throughout the State. In the order, the authority rejected arguments adduced by the Army Welfare Housing Organisation (AWHO) for exemption of registration of its project — “Raman Vihar Project” — at Chinnavedampatti village of Coimbatore where 496 houses had been proposed to be built.
Essentially, the developer had submitted that the project, which was launched in 2012, fell outside the ambit of the law, which came into effect much later. While the law Real Estate (Regulation and Development) Act – received Presidential assent in March 2016, the Tamil Nadu government, in June 2017, framed rules to implement the law.
However, the authority held that the project in question was an ongoing one and directed the AWHO to get it registered.
The order is to demonstrate the authority’s eagerness in addressing issues concerning the public, according to a senior official in the Housing and Urban Development department, adding that of late, the pace of work of the TNRERA had picked up. The body has been impressing upon builders and developers of housing projects to adhere themselves to the new rules, says the official.
Impact of work
S. Ramaprabhu, secretary of the southern centre of the Builders’ Association of India, says players in the sector have started feeling the impact of the authority’s work. The TNRERA is advising those who have applied for regularisation of unapproved layouts or got their layouts regularised to get registration done.
As for the absence of a full-fledged chairperson, the BAI office-bearer says, “We, in the industry, do not view it as an issue because S. Krishnan, Principal Secretary (Housing and Urban Development), who is functioning as the chief, is performing his role well.”
Pointing out that rules regarding the TNRERA have been designed properly, K.R. Meenakshi Sundaram, a Madurai-based real estate developer and a member of the Confederation of Real Estate Developers’ Association of India (CREDAI), says that developers and promoters in the southern part of the State have recognised the need for registration with the new body and “we are all falling in line with what the law has prescribed.”
However, he feels that the TNRERA has to make itself more visible and it should have adequate manpower in major cities of the State other than Chennai.
G. Shyam Sundar, an advocate specialising in matters concerning real estate, says TNRERA will do well to study the working of its counterpart in Karnataka, which is making intense efforts of investigation about unregistered projects.