Supplementary housing projects which were earlier exempted from Tamil Nadu Real Estate Regulation and Development Act (TNRERA) are now on a tracking system.

Reason being housing projects that are less than 8 (apartments) units need not be registered with the realty regulator, home lenders demand the developers have the real estate regulator’s tag to facilitate loans for buyers.

The Central Act came into force in Tamil Nadu on 22/06/2017. As per TNRERA Rules, more than 260 ongoing housing projects were exempted from filing the application seeking “completion certificate” with the Chennai Metropolitan Development Authority (CMDA). However, the corporation does not follow the same procedure of completion certificate, unlike the CMDA.

Home lenders such as banks and non-banking finance companies (NBFC) said they are currently in a scrape, as the absence of RERA clearance for a housing project prevents them from lending to both developers and buyers.

Source: Times of India