TNRERA Increases Penalties on Unregistered Property Sales in Vellore Projects
Developers in Vellore now face tougher fines from TNRERA for selling plots or flats without proper registration. The rules, detailed in circular No. TNRERA/3867/2024 from September 10, 2025, replace previous, more lenient measures aiming at Section 3 of the Real Estate Act, 2016.
Factors Behind the Increased Penalties
Selling without TNRERA's approval is now a serious breach. The penalties depend on the area:
- ₹15,000 per unit in areas governed by Chennai Corporation.
- ₹8,000 in other Municipal Corporations.
- ₹6,000 in Municipalities.
- ₹4,000 in Town Panchayats.
- ₹3,000 in Village Panchayats.
More severe penalties await further:
- 2% of the proportionate project cost for plots or 1% for flats.
- 2% of total sale value as stipulated in the Encumbrance Certificate. Many Vellore projects fall under panchayat or municipality areas, thus directly hit by these guidelines.
Enhanced Penalties for Major Offences
TNRERA takes a harder stance on larger violations:
- 50% of base penalty if between 10 and 50 units are sold illegally.
- 100% of base penalty for more than 50 units.
To deter mass pre-sales, common in Vellore's expanding plot markets, a developer selling 60 unregistered plots on the sly could pay double the standard fine, serving as a considerable deterrent.
Why Vellore Projects Are Under Scrutiny
Affordable plots attract buyers from Chennai and elsewhere. Undisclosed developers rush to sell without registering, placing buyer funds at risk. TNRERA's crackdown targets these actions, particularly in Vellore. Check the official site for notices on blacklisted projects in Vellore.
Homebuyers benefit immensely. No more deals on ghost-registered schemes. Always check TNRERA portals for proof of registration before signing.
TNRERA's Broader Market Reform Initiatives
This penalty framework fits into broader reforms. Starting January 2026, a three-bank-account system will secure buyer money, 30% in a transaction account, and the remainder will be split securely. Ads must prominently display RERA numbers along with QR codes, avoiding general "terms apply" disclaimers.
Developers adjust or face consequences. Timely registration is mandatory and not optional; it’s essential for survival. Failure to comply can lead to hefty fines, project freezes, or even prison time.
Guidance for Vellore Buyers and Builders
- Buyers: Verify TNRERA registration online. Expect Form-C QR in advertisements.
- Builders: Start the registration process early. Use compliant banks for fund transactions.
- All: Keep an eye on new updates on rera.tn.gov.in.
TNRERA builds trust one penalty at a time. Vellore's real estate market matures under this vigilant watch.