Tamil Nadu Apartment Act: One Year On, Many Complexes Yet to Fall in Line

One year after the Tamil Nadu Apartment Ownership Rules, 2024, were made effective, several apartment complexes in Chennai are still struggling to comply with the new law due to either a lack of clarity or reluctance in going through the process.

The rules were notified in the Tamil Nadu Gazette on September 24, 2024, which made it compulsory for flat owners-whether in a four-unit block or a multi-tower society-to register their associations under the Apartment Ownership Act. Owners must submit “Form A” for initial registration, appoint auditors, and file audited accounts annually. Large communities with multiple towers must also form federations and draft bylaws.

The Act aims to empower apartment owners with more control, especially in redevelopment. It allows buildings to be demolished if two-thirds of residents agree and enables associations to act against defaulters in maintenance payments. While the provisions are designed to benefit residents, many associations cite delays, confusion, and excessive paperwork as hurdles.

Several resident welfare associations, previously registered under the Societies Act, are now required to migrate. For instance, Ragamalika Apartments in Mandaveli reported difficulty in renewing under the new law, with residents unclear about the application process and acknowledgements. Smaller complexes with fewer than 15 units say the documentation burden discourages them from registration.

Real estate consultants note a surge in inquiries from owners planning redevelopment, who must first comply with the Act.

Some larger communities are already adapting. House of Hiranandani in Egattur, which currently has 14 towers, will be required to form a federation once ongoing construction is complete.

Others, like Orchid Springs in Kolathur, have been ahead of the curve. Since 2015, it has followed a federal model, with eight blocks functioning under an overarching federation. Each block manages its own finances while contributing to shared amenities. “This decentralised system improves transparency and accountability,” said Ganapathy Suresh, founding president of Orchid Springs Association. The gated community, home to over 2,000 flats, has already submitted Form A for three blocks and is working on completing the process.

Suresh warned that non-compliance could attract strict action. “The State Government has the power to disqualify old associations or freeze accounts,” he said.