The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has been at the forefront of real estate reform, progressively enforcing compliance mechanisms that aim to bring greater transparency, accountability, and fairness to the sector. While the most discussed development remains the circular dated July 1st 2025, which outlines mandatory guidelines for real estate advertisements, there have been several other critical recent updates. This article focuses exclusively on these recent developments, highlighting the ongoing efforts to enhance transparency and consumer protection within Tamil Nadu's real estate sector.
Crackdown on Misleading Ads
Recognizing the significant influence of advertisements on homebuyers' decisions and with a view to protect homebuyers from deceptive advertising in the real estate sector, the TNRERA issued a notification on July 1st, 2025, introducing strict new guidelines for all real estate advertising. Under these rules every advertisement, whether in print, electronic media, outdoor displays, social media platforms, audio-visual or audio formats, must prominently display the project's registration details, including the TNRERA registration number and a QR code and the website address of the Authority. The QR code, when scanned, should link directly to the project's official registration details page on the TNRERA website which would display the project details as provided for by the developer in Form-C.
These guidelines build upon the core requirement under Section 11(2) of the Real Estate (Regulation and Development) Act, 2016 ("RERA Act") which mandates that all real estate advertisements must disclose the TNRERA registration number, the official website of the project or developer, and legible, truthful, and complete information about the project.
The latest directive reinforces this statutory obligation by introducing stricter enforcement and clearer expectations for transparency in promotional content.
The guidelines also prohibit the use of generic disclaimers like "terms and conditions apply" and restrict vague claims such as "100+ amenities." Advertisers are now required to provide accurate and specific information about the project, including the approved location and actual distances from key landmarks, measured along commonly used routes. They are not allowed to mention travel times, which can be misleading. For audio and audiovisual advertisements, the rules mandate that registration and project details must be presented clearly and at a slow pace, so that consumers are not misled by fast-paced or incomplete information.
Violations of these directives now attracts penalties under Sections 61 and 63 of the RERA Act, highlighting the seriousness with which the Authority is addressing misleading marketing practices.
Furthermore, the recently amended Regulation 8(3) of the TNRERA (General) Regulations, 2018 now requires that all advertisements and promotional materials related to a real estate project must strictly comply with the disclosure requirements set out under Regulation 6, which lists the information to be published on the Authority's website, including project details, approvals, timelines, and status updates. This means that promoters can no longer selectively disclose or omit key project details in their marketing content, and all promotional materials must reflect the same information that has been officially filed with the Authority.
Enhanced On-Site Transparency
To enhance project visibility and ensure public awareness, the TNRERA issued Circular No. TNRERA/A3/1675/2025 on May 7th, 2025. This circular requires that every registered real estate project whether a building or a layout must have a dedicated display board installed at the project site. The board must be placed in a prominent, public-facing location and must be of the size specified by the Authority. Importantly, this display board must be standalone and not combined with any other signage or display boards at the site.
The display board must clearly present key information, including the name of the promoter, the name of the project, the TNRERA registration number, the declared date of project completion, and the official TNRERA website address. To ensure compliance, the installation of the display board must be documented with site photographs, which must be certified by the project's architect or engineer. The TNRERA, at its discretion, may impose a condition on the developer in Form – C to produce the proof of installation of display board, certified by the project engineer/architect.
While the Tamil Nadu Combined Development and Building Rules, 2019 requires display boards at project sites containing planning permission details, these are limited to disclosures under the planning framework. TNRERA, through its Circular dated May 7th, 2025, has now made it clear that RERA related disclosures must be displayed separately and in addition to those mandated under the Building Rules.
Mandatory Security Deposit in Layout Projects
With the intent to bring parity in compliance mechanisms and post completion accountability between layout developments and apartment projects, the TNRERA has introduced a security deposit mechanism under Circular No. TNRERA/A3/1677/2025 dated May 7th, 2025, which came into effect from June 1st , 2025.
Unlike residential and commercial building developments, which are subject to a statutory requirement to obtain a completion certificate (CC) from the competent authority before occupation, layout developments are not subject to any such post-approval verification mechanism. In building projects, the issuance of a CC serves as a regulatory safeguard to ensure that the construction conforms to the sanctioned plans and that all conditions imposed at the time of approval are duly complied with before the project is occupied or conveyed. However, in the case of layouts, once approval is granted, there is no formal checkpoint to verify whether the promoter has fulfilled the infrastructure and development obligations stipulated by local bodies and planning authorities.
To fill this regulatory vacuum, the Circular dated May 7th , 2025 introduces a Security Deposit mechanism for layout projects. This mechanism requires promoters to furnish a refundable security deposit—the amount of which is determined based on the greater of the total extent of land or the overall project cost. The deposit is structured on a sliding scale, ranging from ₹1 lakh for smaller projects (up to 1 acre or ₹1 crore project cost) to ₹20 lakhs for larger ones (exceeding 10 acres or ₹10 crores).
The security deposit acts as a financial deterrent against non-compliance and will be refunded only upon submission of a completion report certified by the project's engineer or architect, followed by a satisfactory inspection by the Authority. This mechanism seeks to ensure that all layout development works such as roads, drains, parks, and other common infrastructure are carried out as per approved plans and standards.
Prohibition on Unauthorized Compound Walls
The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has issued a clarification regarding the construction of compound walls and gates in layout developments vide its Circular No. TNRERA/A3/1678/2025, dated May 7th , 2025 which are to be followed at the time of seeking registration of layout developments under the RERA Act.
The clarification addresses instances where promoters have constructed boundary walls that obstruct or block public roads, particularly in cases where such roads have already been handed over to the local body through a gift deed. In such cases, TNRERA has stated that promoters may be directed to remove the obstruction and submit photographic evidence confirming compliance.
The circular also provides that gates at the entrance of layout developments are not permitted. Where gates have been installed, the promoter may similarly be required to remove them and furnish photographs evidencing the same.
To ensure uniform implementation, Scrutiny Officials have been directed to verify compliance with these conditions before forwarding any application for registration to the Authority.
This clarification forms part of TNRERA's broader regulatory approach to ensure that development works conform to planning norms and that public roads remain accessible, particularly in layout developments where post-approval oversight mechanisms may otherwise be limited.
This Circular draws upon multiple pre-existing legal provisions that collectively prohibit physical obstructions in public spaces, but unifies their enforcement through a single regulatory mandate. Section 131 of the Tamil Nadu Panchayats Act, 1994 prohibits the construction of walls, fences, or any form of obstruction on public roads or properties vested in local bodies, placing a clear obligation on authorities to monitor and initiate removal of such encroachments. Complementing this, the Tamil Nadu Land Encroachment Act, 1905 serves as a remedial mechanism, empowering authorities to identify and remove unauthorized occupation of government or public lands, including roads. Additionally, the Tamil Nadu Combined Development and Building Rules, 2019, though primarily governing construction norms, impose restrictions on structures within setback areas, specifically Rule 28 allowing compound walls only within prescribed height limits and permitting gates only with sufficient clearance, thereby preventing blockages that hinder public movement.
While these provisions existed in isolation, the TNRERA circular consolidates them into a preventive compliance framework aimed at preserving public access and preventing encroachment.
Protecting Public Access
Through Circular No. TNRERA/A3/1676/2025 dated May 7th, 2025, TN RERA has moved to streamline the registration process by curbing promoter negligence. Promoters often submit incomplete applications thereby delaying the scrutiny process. The new circular has now provided two chances to the Promoter to comply with the queries raised by the Authority.
If the directions of the Authority are not complied with after availing the above mentioned two chances, any further application will be treated as fresh, leading to a 10% forfeiture of the original registration fee and the remaining 90% may be adjusted towards the registration fee applicable for the fresh application. The promoter must also pay the deficit in the registration fee. This ensures that the registration process enforces due diligence from the very outset and does not become a vicious cycle of inefficiency.
Weekly Grievance Redressal Forum
In a progressivestep towards collaborative governance, Circular No. TNRERA/A5/2211/2025, dated 16th June 2025, institutionalizes a Grievance Redressal Meeting every Monday from 12:00 PM to 1:00 PM. Chaired by the TNRERA Chairperson, these weekly meetings aim to provide a structured forum for homebuyers, promoters, and stakeholders to voice concerns directly.
While the disputes and subject matter which are to be adjudicated before the Authority shall not be taken up by the Grievance Redressal meeting, they offer a platform for resolution relating to representations and project applications.
Key Takeaways
The recent measures introduced by the TNRERA showcase a significant move towards preventive regulation and structured compliance. For promoters, there is now a greater obligation to ensure accuracy in project advertisements, maintain transparency in disclosures, and avoid procedural delays. Requirements such as installation of project display boards, furnishing of security deposits, and adherence to timelines reflect a shift towards accountability being embedded at every stage of development. Continued non-compliance is no longer treated leniently but attracts specific financial and procedural consequences.
From the perspective of prospective homebuyers, these developments offer stronger safeguards. Mandates related to genuine advertising, project visibility, and grievance redressal create an environment where decisions can be made on verified and publicly accessible information. The affirmation of their right to initiate complaints even before purchase reinforces a consumer-centric approach in regulatory adjudication.
Taken together, these reforms contribute to the broader objective of instilling integrity and clarity in the functioning of Tamil Nadu's real estate sector. Stakeholders must recognise that regulatory compliance is no longer a formality but an essential condition for sustainable and lawful real estate practice.
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