Apartments Struggle to Comply with New Tamil Nadu Ownership Act

Nearly a year after the Tamil Nadu Apartment Ownership Rules, 2024, came into force, many residential communities in Chennai are still struggling to register or renew their associations under the new law.

These rules, which were published in the State Gazette on September 24, 2024, require all apartment complexes-from buildings containing only four units to larger multi-tower communities-to submit “Form A” for initial registration. Apart from appointing auditors, during whose term audited accounts are to be prepared and in case of major developments, federations must be formed within the bye-laws for the management of common amenities.

This Act should encourage the orderly governance of residential complexes, with clear powers for associations: redevelopment with the consent of two-thirds owners and taking actions against residents defaulting in maintenance payments. However, execution has been slow.

Many associations previously registered under the Societies Act are now required to migrate to the new framework. Communities like Ragamalika Apartments in Mandaveli say they face hurdles with documentation and clarity on procedures. Smaller apartments with fewer than 15 units complain that compliance is too burdensome.

Real estate consultants note rising inquiries from owners seeking help with registrations and bye-law drafting, particularly from those eyeing redevelopment projects.

Large gated communities are also grappling with requirements. House of Hiranandani in Egattur, which began with nine towers and now has 14, is expected to form a federation once the developer exits. “When the builder leaves, common amenities like roads and clubhouses need a unified body to manage them,” says resident Raghavan Murti.

Some communities, however, were ahead of the curve. Orchid Springs in Kolathur has followed a federal model since 2015, with each block managing its finances while contributing to a central federation. With over 2,000 flats across eight blocks, the association has already submitted Form A for three blocks. “This decentralised system ensures accountability and transparency,” says founding president Ganapathy Suresh, who warns that the State can freeze accounts or disqualify associations that fail to comply.

While the Act strengthens resident governance, its success now hinges on awareness and smoother implementation.