TNRERA Imposes 20% Extra Deposit for Project Extension Beyond 1 Year

Dated on: Monday 4th August 2025

Tamil Nadu RERA (TNRERA) now mandates an additional 20% deposit of the total amount collected from homebuyers into the project’s escrow account for project registration extensions exceeding one year. This is over and above the standard 70% escrow requirement under RERA. The move aims to ensure funds are used solely for project completion and not diverted. Developers have expressed concerns, citing financial strain and delays caused by natural events. The rule is intended to protect homebuyers by improving accountability and timely delivery of projects. This regulation came into effect on August 3, 2025.