T.N. to enact legislation governing apartment ownership

Tamil Nadu Apartment Ownership Act, 1994 to be repealed

Published - March 25, 2022 08:58 pm IST - CHENNAI

The Tamil Nadu government has decided to enact legislation by repealing the Tamil Nadu Apartment Ownership Act, 1994 and has released the memorandum of legislation inviting comments from the public. The decision has been taken in view of the changing scenario in the real estate sector, with the establishment of new bodies like the Real Estate Regulatory Authority (RERA).

Though the Tamil Nadu Apartment Ownership Act, 1994 was enacted to effectively manage the apartment community and acknowledge the rights and duties of apartment owners, envisaging the formation of an association of apartment owners or a society to undertake maintenance and management of common areas and facilities in the property, several shortcomings and practical difficulties in complying with the requirements were observed.

"The real estate sector has undergone a drastic transformation since the enactment of the Act in 1997. During the last four decades, the housing industry has come a long way and has witnessed the development of not only standalone high-rises but also large complexes and townships with multiple residential and commercial provisions, including phased developments," the statement of objects and reasons of the memorandum said.

As the scenario had changed, the replacement of the existing Act with new provisions that were more responsive to present-day needs was required, a senior official told The Hindu. “We are planning to hold a meeting in this regard with stakeholders, possibly next week,” the official said.

"One declaration for each project; only one recognised association of apartment owners; model by-laws to be followed by the association; and the formation of a federation of associations in case of large complexes with more than one project are among the provisions envisioned in the memorandum.

Provisions for the re-development of a dilapidated building with two-thirds consent of apartment owners; introduction of penal provisions for non-submission to the provisions of the Act; and introduction of grievance redressal mechanisms and definitions in line with the RERA Act for effective and efficient adjudication are among the other provisions in the memorandum.

Comments from the general public on the memorandum of legislation may be sent to housing.dept@tn.gov.in or addressed to Mr. S. Veeramani, Additional Secretary, Housing and Urban Development Department, Secretariat, Chennai – 600009, on or before April 11. A copy of the memorandum can be accessed here: https://rb.gy/ksckz6.

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