TNRERA Imposes Graded Fines Up To ₹5 Lakh For Misleading Real Estate Ads

The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has introduced a graded penalty system in Chennai and across Tamil Nadu, imposing fines of up to ₹5 lakh on developers who violate real estate advertising and transparency regulations. According to a circular issued by the authority in June, the new penalty structure took effect on July 1 to deter misleading marketing practices and provide stronger protection for homebuyers.

The enforcement of these penalties follows the tightening of norms last year to curb misleading real estate advertisements. The advertising guidelines, which came into effect on July 1, 2025, require all real estate advertisements across print, television, outdoor media, digital platforms, and social media to prominently display the project’s TNRERA registration number, Form-C QR code, the Authority’s website, the approved project location, and complete promoter details.

Under these rules, developers are prohibited from using vague disclaimers such as ‘terms and conditions apply’. They are also barred from making unverified claims like ‘100+ amenities’, using misleading location descriptions, or publishing advertisements for projects that have not been registered with TNRERA.

To implement the new enforcement mechanism, TNRERA has classified advertising violations into ‘major’ and ‘minor’ categories. The authority has linked the penalty amounts to the overall cost of the real estate project.

Major violations include advertising unregistered projects, failing to display the mandatory registration number or QR code, using misleading QR codes, and making deceptive price comparisons.

For real estate projects costing ₹100 crore and above, a major violation will attract a fine of ₹5 lakh. For projects valued below ₹100 crore, developers will face a fine of ₹2 lakh for major violations. This graded system is designed to ensure stricter compliance with transparency norms in the property sector.