P.R.No: 733 Date: 07.05.

2022

Press Release

Tamil Nadu is one of the most urbanized state in India with more than
48.45 % of its population living in urban areas. The real estate sector have
undergone transformation since the enactment of the Tamil Nadu Apartment
Ownership Act in 1994.During the last three decades, the housing industry has
come a long way and has witnessed development of not only stand-alone high
rises but also large complexes and townships with multiple residential and
commercial provisions including phased developments.
The Tamil Nadu Apartment Ownership Act, 1994(Tamil Nadu Act VII of
1995) was to effectively manage apartment community and to acknowledge
the rights and duties of apartment owners. The said Act envisaged formation
of association of apartment owners or society to undertake maintenance and
management of common areas and facilities in the property. In due course of
administration of the provisions of the said Act over the years, it has been
observed that there are several practical difficulties in complying with the
requirements laid down in the provisions of the said Act. As the scenario has
changed, a need for replacement of the existing Act by new provisions more
responsive to needs of the present day was required.
In view of the dynamic developments in housing industry, expansion and
growth of the real estate sector of Tamil Nadu, and in the interests of effective
delineation of rights and responsibilities of apartment owners in large
complexes and townships, and in order to provide for effective management
and maintenance of apartment community, the State Government after due
deliberations, has made a considered decision to enact a new legislation by
repealing the Tamil Nadu Apartment Ownership Act, 1994. The new legislation,
the Tamil Nadu Apartment Ownership Act, 2022 is being introduced to
safeguard the interest of the apartment owners as well as improving the
administration of common areas and facilities.
Today, this bill has been introduced by Thiru. S. Muthusamy, Hon’ble
Minister for Housing and Urban Development in the Legislative Assembly for
consideration.
The new act inter alia covers the following salient items:
a. Under the new enactment, the associations are to be compulsorily
registered only under this enactment as this legislation is specifically
enacted to address the concerns and issues that may be faced by the
apartment owners.
b. Under the new enactment, only one association is recognised for each
project.
c. To avoid confusion, the new enactment has specifically made that only
one ‘Declaration’ should be filed for a project with respect to the
available common areas and facilities in the project.
d. The new enactment is applicable for housing complex having a minimum
of 4 units.
e. The new enactment has made the registration of ‘Declaration’ and
formation of Association mandatory, failing which, there is a penal
provision for such non-compliance with the provisions of the Act.
f. A specific provision has been included to create a charge on the
apartment in order to recover the dues of the Association.
g. The concept of ‘Federation’ has been introduced whereby the
associations formed for multiple phases can join together and form a
‘Federation’ for effective management of a complex.
h. Considering the existence of a lot of old apartment complexes which
were not in a position to be re-developed due to a lack of legal
ecosystem, the same has been addressed in the new enactment whereby
any apartment complex can be re- developed if 2/3rd of the apartment
owners are in agreement for re-developing the said building or if the
appropriate authority has certified that the building is in ruinous
condition, or in a state that it may endanger the lives of the occupants or
any other person.
i. Under the new enactment, a consistent and specific formula has been
provided to calculate the percentage of undivided interest.
j. Under the new enactment, appeal against the order of the competent
authority has been provided.

Issued By: - DIPR, Secretariat, Chennai - 9.