TNREAT Rules TNRERA Cannot Act Against Builders Over Approved Plan Violations

Tribunal Limits TNRERA’s Powers in Building Plan Violation Cases

The Tamil Nadu Real Estate Appellate Tribunal (TNREAT) has clarified the limits of the state real estate regulator’s powers, ruling that the Tamil Nadu Real Estate Regulatory Authority (TNRERA) cannot act against builders over deviations from approved building plans. The tribunal held that such violations fall within the jurisdiction of the relevant planning authority under the applicable planning laws.

The ruling came while allowing an appeal filed by Newry Properties Private Limited in a dispute concerning the Newry Shanmita commercial complex in Chennai. The case centred on a statutory notice issued by the Chennai Metropolitan Development Authority (CMDA) over alleged deviations from the approved building plan.

Dispute Over Newry Shanmita Complex

In January 2025, the CMDA issued a Form-IV notice citing alleged violations at the commercial development. The issues included changes to the approved floor layout, double-ceiling height and access arrangements within the commercial block.

Buyers who raised concerns over the alleged deviations approached TNRERA, seeking revised planning approval, rectification of the violations and physical access to the commercial block.

In June 2026, TNRERA directed the promoter to comply with the CMDA’s directions within three months. It also ordered the promoter to pay ₹25,000 towards legal expenses.

Newry Properties challenged the order before TNREAT, arguing that TNRERA did not have the authority to adjudicate matters arising from statutory directions issued by the CMDA.

CMDA Responsible for Planning Enforcement

In its final order dated October 14, TNREAT accepted the promoter’s jurisdictional argument. The tribunal observed that the CMDA functions as a statutory planning authority under the Tamil Nadu Town and Country Planning Act, 1971.

It held that TNRERA cannot review, modify or enforce orders issued by the CMDA. If the alleged building-plan deviations are established, the planning authority must take appropriate action under the relevant planning legislation.

The tribunal consequently set aside TNRERA’s direction requiring the promoter to comply with the CMDA notice within three months.

TNREAT also permitted the complainants to withdraw the ₹25,000 deposited by the promoter towards litigation expenses, along with any accrued interest.

Implications for Builders and Apartment Buyers

The ruling clarifies the distinction between real estate regulation and statutory planning enforcement in Tamil Nadu. While TNRERA handles matters within its jurisdiction under real estate law, alleged violations of approved building plans must be addressed by the competent planning authority.

For developers and property buyers, the decision highlights the importance of identifying the appropriate legal forum when disputes involve planning permissions, construction deviations and access to common or commercial areas.