--- title: "New TNRERA Penalties: Sale of Plots/Flats/Apartments Sold before Registration" date: 2025-09-16 author: "Suresh Palav" url: https://www.indialaw.in/blog/real-estate/new-tnrera-penalties-for-sale-before-registration/ --- # New TNRERA Penalties: Sale of Plots/Flats/Apartments Sold before Registration Posted On - 16 September, 2025 • By - [Suresh Palav](https://www.indialaw.in/people/suresh-palav/ "Posts by Suresh Palav") and [Divy Lotia](https://www.indialaw.in/author/divy-lotia/ "Posts by Divy Lotia") [![New TNRERA Penalties: Sale of Plots/Flats/Apartments Sold before Registration](https://www.indialaw.in/wp-content/uploads/mcurpyq0edu.jpg)](https://www.indialaw.in/wp-content/uploads/mcurpyq0edu.jpg) ## **Introduction** The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has issued a new circular, No. TNRERA/3867/2024, dated 10.09.2025, that introduces a significantly revised and stricter penalty structure for selling plots and flats before a project is officially registered. This order supersedes a previous circular of the same number from November 2024 and is a strong move to enforce compliance with Section 3 of the Real Estate (Regulation & Development) Act, 2016. ## **Understanding the New Penalties** Under the new guidelines, the penalty for a real estate project in violation of Section 3 will be the highest of three possible calculations, ensuring a substantial financial deterrent. The first is a fixed amount per plot or flat based on its jurisdiction: ₹15,000 in the Greater Chennai Corporation (GCC), ₹10,000 in the Chennai Metropolitan Area (excluding GCC), and ₹10,000 in the Municipal Corporations of Madurai, Coimbatore, Tirupur, Salem, Tiruchirapalli, Tirunelveli, Erode, Vellore, and Thoothukudi, as well as their adjacent municipalities, town panchayats, and village panchayats. Other penalties include ₹8,000 for all other Municipal Corporations, ₹6,000 for all other Municipalities, ₹4,000 for all other Town Panchayats, and ₹3,000 for all other Village Panchayats. The penalty can also be a percentage of the project cost, specifically 2% of the proportionate project cost for plots and 1% for flats sold without registration. A third option is 2% of the total sale value of the plots or flats sold without TNRERA registration, as reflected in the Encumbrance Certificate (EC). ## **Additional Penalties for Multiple Violations** In a further move to deter non-compliance, an additional penalty will be levied on projects where multiple properties are sold in violation of the Act. This additional penalty will be 50% of the calculated penalty if 10 to 50 plots/flats/apartments have been sold illegally, and a full 100% of the penalty for projects where more than 50 such properties have been sold. ## **Impact on Developers and Homebuyers** This revised framework signals TNRERA’s firm commitment to protecting homebuyers and creating a more transparent and accountable real estate market. For developers, this means the cost of non-compliance is now higher than ever, making timely registration not just a legal requirement but an essential business practice. For prospective homebuyers, this is a welcome development that adds another layer of security, making it even more important to verify a project’s TNRERA registration status before making any purchase. ## **Conclusion** This revised framework signals TNRERA’s firm commitment to protecting homebuyers and creating a more transparent and accountable real estate market. For developers, this means the cost of non-compliance is now higher than ever, making timely registration not just a legal requirement but an essential business practice. For prospective homebuyers, this is a welcome development that adds another layer of security, making it even more important to verify a project’s TNRERA registration status before making any purchase. For more details, write to us at: [**contact@indialaw.in**](mailto:contact@indialaw.in) [Real Estate](https://www.indialaw.in/expertise/real-estate/) [Download PDF](https://www.indialaw.in/blog/real-estate/new-tnrera-penalties-for-sale-before-registration//pdf/) Last Updated On - 16 September, 2025 Disclaimer - This article is intended for general informational purposes and does not constitute legal advice. Readers should seek specific legal counsel in relation to their individual circumstances. Get IndiaLaw’s legal updates in your Google feed[![Add IndiaLaw as a preferred source on Google](https://www.indialaw.in/wp-content/uploads/google_preferred_source_badge_light_en@2x.png)](https://www.google.com/preferences/source?q=https://www.indialaw.in/) --- # IndiaLaw LLP — Offices & Contact Details --- ## General Contact | | | |---|---| | **Website** | https://www.indialaw.in | | **Primary email** | contact@indialaw.in | | **Primary phone** | +91 836-9995919 | | **Contact form** | https://www.indialaw.in/connect/ | | **Careers (separate channel)** | https://www.indialaw.in/careers/ | --- ## All Offices (9 locations across 8 cities) ### 1. Mumbai — Registered Office & Head Office (Apeejay Chambers) | | | |---|---| | **Address** | Apeejay Chambers, Ground Floor, Wallace Street, Fort, Mumbai – 400 001 | | **Phone** | [022-6924-7400](tel:02269247400) | | **Email** | contact@indialaw.in | | **Page** | https://www.indialaw.in/mumbai/ | | **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate · IP | | **Notes** | The HQ. 5 partners based here. Handles PAN-India litigation, arbitration, corporate, banking, IP and real estate practice. Largest team across all offices. | ### 2. Mumbai — Non-Litigation Office (Excelsior, Fort) | | | |---|---| | **Address** | 4th Floor, New Excelsior Theatre Pvt. Ltd., Amrit Keshav Nayak Marg, Fort, Mumbai – 400 001 | | **Phone** | [022-697-40500](tel:022-697-40500) | | **Email** | contact@indialaw.in | | **Page** | https://www.indialaw.in/mumbai/ | | **Practice focus** | Non-litigation only — consultations, negotiations, transactional work | | **Notes** | Opened 2024. Litigation and arbitration remain at the Apeejay Chambers head office. | ### 3. Delhi | | | |---|---| | **Address** | Flat No. 1107 & 1108, Prakashdeep Building, Tolstoy Marg, Connaught Place, New Delhi – 110 001 | | **Phone** | (general line: +91 836-9995919) | | **Email** | contact@indialaw.in | | **Page** | https://www.indialaw.in/delhi/ | | **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate | | **Notes** | 3 partners based here. Located near the Supreme Court of India, Delhi High Court and other appellate bodies. | ### 4. Kolkata | | | |---|---| | **Address** | Centre Point Building, Room No. 214, 2nd Floor, Premises No. 21, Hemanta Basu Sarani, Opp. Great Eastern Hotel, P.S. Hare Street, Kolkata – 700 001, West Bengal | | **Phone** | [+91 33 4813 1001](tel:+913348131001) | | **Email** | contact@indialaw.in | | **Page** | https://www.indialaw.in/kolkata/ | | **Practice focus** | Insolvency & Bankruptcy · Commercial & Civil Litigation · Arbitration · Banking Litigation · Real Estate · Labour & Employment · Consumer | | **Notes** | Advises banks, NBFCs, MSMEs and corporates on transactions and dispute resolution. Works in close coordination with the Mumbai HO. | ### 5. Chennai | | | |---|---| | **Address** | GF-A, 19 Casa Major Road, Egmore, Chennai – 600 008 | | **Phone** | (general line: +91 836-9995919) | | **Email** | contact@indialaw.in | | **Page** | https://www.indialaw.in/chennai/ | | **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate | | **Notes** | Full-fledged office with experienced legal team. Supported by Mumbai HO. | ### 6. Bengaluru (Bangalore) | | | |---|---| | **Address** | INDIALAW LLP, No. 7 Chinnaswamy Mudaliar Road, Shivaji Nagar, Bangalore – 560 051 | | **Phone** | [080-4167-2444](tel:08041672444) | | **Email** | contact@indialaw.in | | **Page** | https://www.indialaw.in/bengaluru/ | | **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate · Family Laws · Labour | | **Notes** | Located near Bangalore High Court. Handles corporate, commercial, banking and matrimonial disputes. | ### 7. Hyderabad | | | |---|---| | **Address** | 403, 4th Floor, Sanatana Ecstasy Building, beside Tanishq Show Room, Himayathnagar, Hyderabad – 500 029, Telangana | | **Phone** | [040-6666-5166](tel:04066665166) | | **Email** | contact@indialaw.in | | **Page** | https://www.indialaw.in/hyderabad/ | | **Practice focus** | Litigation · Banking · Insolvency & Bankruptcy · Real Estate | | **Notes** | Particularly well known for complex banking matters and real estate transactions. | ### 8. Cochin (Kochi) | | | |---|---| | **Address** | Second Floor, Pulikkal Building, K.K. Padmanabhan Road, Ernakulam North – 682 018, Kerala | | **Phone** | [0484-3583961](tel:04843583961) | | **Email** | contact@indialaw.in | | **Page** | https://www.indialaw.in/cochin/ | | **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate | | **Notes** | Commercial disputes, property litigation, financial-claim arbitrations and real estate transactions. | ### 9. Noida (NCR) | | | |---|---| | **Address** | No. 16 & 17, Silver Offices, 17th Floor, Wave One, Sector 18, Noida – 201 301 | | **Phone** | (general line: +91 836-9995919) | | **Email** | contact@indialaw.in | | **Page** | https://www.indialaw.in/noida/ | | **Practice focus** | Aviation · Insurance · Mergers & Acquisitions · Corporate | | **Office head** | **Mr. Dinesh Gupta** (joined August 2025 to lead and expand the corporate practice) | | **Notes** | Newest office. Sector-focused on highly regulated industries serving NCR-based clients. | --- ## Quick-Dial Phone List | Office | Phone | |---|---| | Mumbai HO (Apeejay) | 022-6924-7400 | | Mumbai Excelsior | 022-697-40500 | | Kolkata | +91 33 4813 1001 | | Bengaluru | 080-4167-2444 | | Hyderabad | 040-6666-5166 | | Cochin | 0484-3583961 | | **General / Marketing line** | **+91 836-9995919** | Delhi, Chennai and Noida route through the general number. --- ## Social Channels - LinkedIn: https://www.linkedin.com/company/indialaw - X / Twitter: https://twitter.com/Indialawmumbai - Facebook: https://www.facebook.com/indialawllp/ - Instagram: https://www.instagram.com/indialawllp ---