Tamil Nadu Unveils New Rules for Apartment Ownership Act

According to the new rules, apartment owners are required to establish an association, create by-laws, and register the association, with a minimum of four apartment owners necessary to form it. Each association will have a board of managers, and in cases where multiple towers exist on a property, the associations can form a federation, with the president and treasurer of each association serving as members.

A housing and urban development official stated that a resolution is essential for redevelopment. The board of managers must convene a special general meeting either on its own initiative or upon request from one-fourth of the apartment owners. Following the passing of the resolution, the association, with the written consent of at least two-thirds of the apartment owners in the project, will notify the chief planner of the Chennai Metropolitan Development Authority or the local planning authority about the decision to redevelop the project.

The association is required to inform all apartment owners in writing within ten days of submitting the decision. If any apartment owner is dissatisfied with how consent for redevelopment was obtained, they may file an objection with the relevant authority within 30 days.

If the authority finds issues with the consent process, it will issue necessary directions to the association. If due process has been followed, the objection will be dismissed. However, if the appropriate authority certifies that the building is in a dilapidated condition or poses a danger to the occupants or others, the association must convene a meeting to pass a resolution to engage a promoter or consultant to prepare a detailed redevelopment report, which will then be submitted to the association for approval.