[257]

IV-2 Ex. (566)

©

[Regd. No. TN/CCN/467/2012-14.

GOVERNMENT OF TAMIL NADU

[R. Dis. No. 197/2009.

2022

[Price: Rs. 4.80 Paise.

TAMIL NADU

GOVERNMENT GAZETTE

EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 566]

CHENNAI, FRIDAY, DECEMBER 23, 2022

Margazhi 8, Subakiruthu, Thiruvalluvar Aandu–2053

Part IV—Section 2

Tamil Nadu Acts and Ordinances

The following Act of the Tamil Nadu Legislative Assembly

received the assent of the President on the 15th December 2022 and

is hereby published for general information:—

ACT No. 44 OF 2022.

An Act to repeal and re-enact the Tamil Nadu Apartment

Ownership Act, 1994.

Be it enacted by the Legislative Assembly of the State of

Tamil Nadu in the Seventy-third Year of the Republic of India as

follows:—

1.

(1) This Act may be called the Tamil Nadu Apartment

Ownership Act, 2022.

Short title, extent and

commencement.

(2) It extends to the whole of the State of Tamil Nadu.

(3) It shall come into force on such date as the State

Government may, by notification, appoint and different dates may

be appointed for different areas.

2. In this Act, unless the context otherwise requires,—

Definitions.

(a) “apartment” means a separate and self-contained part

of any property, including one or more rooms or enclosed spaces,

located in one or more floors or any part thereof in a building, used

or intended to be used for residential or any commercial purpose,

whether called block, chamber, dwelling unit, flat, office, showroom,

shop, premises, suite, tenement, unit or by any other name;

(b) “apartment number” means the number, letter, or

combination thereof designating an apartment;

(c) “apartment owner” means the person owning an

apartment and includes a person who has taken an apartment on

lease for a period of not less than thirty years;

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(d) “appropriate authority” means the local authority or any

authority created or established under any law for the time being in

force by the Central or State Government, for sanction of plan or

issue of completion certificate for building;

(e) “association” means the association of apartment

owners, competent to contract in its own name and formed in

accordance with the bye-laws;

(f) “building” means a building containing four or more

apartments comprised in a property;

(g) “bye-laws” means the bye-laws of an association made

as per section 6;

(h) “carpet area” means the net usable floor area of an

apartment excluding the area covered by the external walls, areas

under services shafts, verandah area and open terrace area, but

includes the area covered by the internal partition walls of the

apartment;

(i)

“common areas and facilities” include,—

(i) the stair cases, lifts, staircase and lift lobbies, fire

escapes, and common entrances and exits of the project;

(ii) the common basements, stilt, terraces, parks, play

areas, open parking areas and common storage spaces;

(iii) the premises for the lodging of persons employed

for the management of the property including accommodation

for watch and ward staff or for the lodging of community service

personnel;

(iv) installations of central services such as electricity,

gas, water and sanitation, air-conditioning and incinerating, system

for water conservation and renewable energy;

(v) the water tanks, sumps, motors, fans, compressors,

ducts and all apparatus connected with installations for common

use;

(vi) all community facilities developed in the property;

(vii) all other portion of the project necessary or

convenient for its maintenance, safety, etc., and in common use

including limited common areas and facilities;

(j)

“common expenses” means and includes,—

(i) all sums assessed against the apartment owners

by the association;

(ii) expenses of administration, maintenance, repair or

replacement of the common areas and facilities;

(iii) legal expenses as may be incurred by the

association for the enforcement of the claims of the society or

apartment owners;

(iv) expenses resolved as common expenses by the

association; and

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TAMIL NADU GOVERNMENT GAZETTE  EXTRAORDINARY

(v) expenses declared as common expenses under

this Act or the bye-laws;

(k) “common profit” means the balance of all income,

rents and other revenue from the common areas and facilities

remaining, after deduction of the common expenses;

(l) “competent authority” means an officer or authority

notified by the Government as 'competent authority' for the purpose

of this Act and may notify as many competent authorities, as they

deem fit;

(m) “declaration” means a declaration made under section 4;

(n) “development” with all its grammatical variations

and cognate expressions, means the development of immovable

property, carrying out engineering or other operations in, on, over

or under the land or the making of any material change in any

immovable property or land and includes re-development;

(o) “federation” means the body formed by two or more

societies or associations as per bye-laws;

(p) ”Form” means a Form appended to the Rule;

(q) ”Government” means the State Government;

(r) “limited common areas and facilities” means those

common areas and facilities which may be designated in the

declaration as reserved for use of certain apartment owners to the

exclusion of others, which may include car park space, balcony,

verandah area, and open terrace area appertaining to the apartment;

(s) “local authority” means,-

(i) any municipal corporation established under any

law for the time being in force; or

Tamil Nadu

Act V

of 1920.

(ii) a municipal council constituted under the

Tamil Nadu District Municipalities Act, 1920; or

Tamil Nadu

Act 21

of 1994.

(iii) a village panchayat constituted under the

Tamil Nadu Panchayats Act, 1994:

(t) “plan” means the plan for development of any project

sanctioned by the appropriate authority.

(u) “prescribed” means prescribed by rules made under

this Act;

(v) “project” means the development of a building or an

existing building or a part thereof;

(w) “promoter” means,-

(i) a person who builds, constructs, develops or causes

to build, construct or develop a building or an existing building or a

part thereof; or

(ii) a development authority or any other public body

in respect of a building developed by such authority or body, on

lands owned by it or placed at its disposal by the Government; or

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TAMIL NADU GOVERNMENT GAZETTE  EXTRAORDINARY

(iii) a housing society which develops buildings for its

members or in respect of the allottees of such buildings.

Explanation.— For the purposes of this clause, in cases where

the person who develops a building or an existing building into an

apartment and the person who sells the apartment are different

persons, both of them shall be deemed to be promoters;

(x) “property” means any site area wherein projects are

developed in one or multiple phases;

(y) “site area” means the area of the entire parcel of land

covered under the plan;

(z) “society” means any association existing on the date of

coming into force of this Act, representing the majority of apartment

owners in a property registered under the Tamil Nadu Co-operative

Societies Act, 1983 or the Tamil Nadu Societies Registration

Act, 1975;

Tamil Nadu Act

30 of 1983.

Tamil Nadu Act

27 of 1975.

(aa) “subsequent apartment owner” means any

person acquiring an apartment by way of purchase or by way of

lease for a period of not less than thirty years or by inheritance from

an apartment owner.

Apartment to be

heritable and

transferable.

3. (1) Each apartment owner shall be entitled to the exclusive

ownership and possession of his apartment.

(2) An apartment, together with its undivided interest in

the common areas and facilities, shall constitute a heritable and

transferable immovable property within the meaning of any law for

the time being in force:

Provided that no apartment or its undivided interest in the

common areas and facilities shall be partitioned or sub-divided for

any purpose whatsoever.

Declaration.

4. (1) The promoter or majority of apartment owners of a

building, as the case may be, shall submit a declaration in such

Form, as may be prescribed, in duplicate, accompanied with such

fees and in such manner as may be prescribed, to the competent

authority within ninety days from the date of issue of the completion

certificate of the building by the appropriate authority:

Provided that in respect of every building in existence on

the date of commencement of this Act, the Form shall be submitted

within one hundred and eighty days from that date.

(2) On receipt of a declaration under sub-section (1), the

competent authority may hold such inquiry, as deemed necessary,

to ascertain whether —

(i) the property comes within the purview of the Act;

and

(ii) the declaration, is in order.

(3) The competent authority, on being satisfied that the

declaration is in order, shall make an endorsement on the body of

the declaration, testifying the fact of acceptance of the declaration,

put its dated signature, and set its seal and return it back to the

declarant and retain a copy of the same for record.

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(4) If the competent authority were to find on examination

that the declaration does not conform to the requirements of this

Act or the rules made thereunder, it shall return the declaration,

indicating the defects to be rectified, with direction to resubmit the

same within a period of thirty days.

5. (1) The declaration as accepted under sub-section (3) of

section 4 or under sub-section (1) of section 10 shall be amended,—

Amendment of

declaration.

(i) if there is any bona fide mistake in the declaration;

or

(ii) subsequent to the acceptance of the declaration, if

there is any alteration in the description or nature of the property or

any part thereof to which such declaration relates; or

(iii) consequent on re-development of the project

under section 13.

(2) An application for amendment of declaration shall, be

submitted within such time, in such Form and manner, together with

such fee as may be prescribed, to the competent authority. The

provisions of sub-sections (2), (3) and (4) of section 4 shall apply to

such application.

6. (1) Every project shall be administered and governed in

accordance with the bye-laws of the association.

Bye-laws.

(2) The bye-laws shall provide for the following, namely:-

(i)

the manner in which the association is to be

formed, the election of a board of managers from among the

apartment owners, the number of persons constituting the board,

the number of members of the board to retire annually, the powers

and duties of the board, the honorarium, if any, of the members of

the board, the method of removal from office of members of the

board, the powers of the board to engage the services of a secretary

or manager, delegation of powers and duties to such secretary or

manager;

(ii) meetings of the apartment owners and the

number to constitute quorum;

(iii) election of a president who shall preside over the

meetings of the board and of the association;

(iv) maintenance of the common areas and repair

and replacement of the common facilities and payment thereof;

(v) the manner of collecting share of the common

expenses from the apartment owners;

(vi) the manner in which a federation is to be formed,

in cases, where its formation is necessary; or

(vii) any other matter necessary for the administration

of the property.

(3) As soon as may be, after the acceptance of the

declaration under sub-section (3) of section 4, the majority of

apartment owners shall make the bye-laws as per sub-section (2)

and submit the same to the competent authority, who shall register it.

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Formation of

association of

apartment owners.

7.

On registration of the bye-laws with the competent

authority, the apartment owners shall form an association of the

apartment owners for a building as per the bye laws:

Provided that in respect of buildings in existence on the date of

commencement of this Act, wherein there is a single association for

a building, such association shall be deemed to be the association

of that building under this Act.

Common areas and

facilities.

8. (1) Each apartment owner shall be entitled to an undivided

interest in the common areas and facilities in proportion to the

carpet area of his apartment to that of the total carpet area of the

project. The undivided interest in the common areas and facilities

shall not be separated from the apartment to which it appertains, or

partitioned or divided under any circumstance and shall be deemed

to be conveyed or encumbered with the apartment.

(2) Each apartment owner shall use the common areas

and facilities for the purposes for which they are intended, without

hindering or encroaching upon the lawful rights of the other

apartment owners.

(3) The work relating to the maintenance, repair and

replacement of the common areas and facilities and the making

of any additions or improvement thereto shall be carried out in

accordance with the bye-laws.

Compliance with

bye-laws.

9. (1) Each apartment owner shall comply with the conditions

and restrictions set forth in the bye-laws.

(2) Where any apartment owner fails to comply with any

of the bye-laws referred to in sub-section (1), such failure shall be

a ground for an action against such apartment owner, to recover

sums due, for damages or injunctive relief or both, maintainable by

the association or by the aggrieved apartment owner.

(3) Notwithstanding anything contained in the Transfer of

Property Act, 1882, or in any other law for the time being in force,

a subsequent apartment owner shall be bound by the declaration

and the bye-laws.

Central Act

IV of 1882.

Formation of

federation.

10. (1) In the case of a property, comprising of more than

one project, having two or more societies or associations, such

societies and associations shall form a federation for the purpose of

maintaining and managing the common areas and facilities which

are commonly enjoyed and availed by all the apartment owners in

that property as per the bye-laws. The common areas and facilities

declared by each such society or association shall be deemed to

be the collective common areas and facilities of the federation and

the federation shall submit a declaration to the competent authority

in such Form, as may be prescribed, in duplicate, accompanied by

such fees and in such manner as may be prescribed.

(2) On receipt of a declaration under sub-section (1), the

competent authority may hold such inquiry, as deemed necessary

to ascertain whether the declaration of the federation has been

made as per the bye-laws and is in order.

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TAMIL NADU GOVERNMENT GAZETTE  EXTRAORDINARY

(3) The competent authority, on being satisfied that the

declaration is in order, shall make an endorsement on the body of

the declaration of the federation, testifying the fact of acceptance of

the declaration, put its signature and set its seal and return it back

to the Federation and retain a copy of the same for record.

(4) If the competent authority were to find on examination

that the declaration of the federation, does not conform to the

requirements of the Act or the rules made thereunder, or not formed

as per the bye-laws, it shall return the declaration indicating the

defects to be rectified, with directions to resubmit the same within a

period of thirty days.

11. An appeal against an order of the competent authority

under sub-section (4) of section 4, sub-section (2) of section 5 and

sub-section (4) of section 10, shall lie to such appellate authority,

as the Government may, by notification appoint, within a period of

thirty days from the date of receipt of the order. The Government

may appoint as many appellate authorities as they deem fit:

Appeal.

Provided that the appellate authority may admit an appeal

preferred after the said period, if it is satisfied that the appellant was

prevented by sufficient cause from filing the appeal in time.

12. Collective common areas and facilities of a Federation

shall remain undivided and be available for the common use of the

members of all the societies or associations concerned.

Collective common

areas and

facilities of

Federation.

13. Notwithstanding

anything

contained

in

this

Act,

re-development of a project may be carried out on such terms and

conditions, as may be prescribed,-

(a) with the consent of not less than two-thirds of the

apartment owners of the project; or

(b) if the appropriate authority has certified that the building

is in ruinous condition, or in a such a state that it may endanger the

lives of the occupants or any other person.

Re-development.

14. Without prejudice to the right of each apartment owner

to insure his apartment, the association shall, if so required by a

majority of apartment owners, insure the building against fire, flood,

cyclone or such other hazards, under such terms and for such

amounts as may be required. The policy of the insurance of the

property shall be written in the name of the association, as trustee

for each of the apartment owner in the percentage specified in the

declaration and the premium payable under such policy of insurance

shall be a common expense.

Insurance.

15. If, within sixty days from the date of damage or destruction

to all or any part of a property, it is not determined by the association

to repair, reconstruct or rebuild, in that event,-

Disposition of

property on

destruction or

damage.

(a) the property shall be deemed to be owned in common

by the apartment owners;

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(b) the undivided interest in the property owned in common,

shall appertain to each apartment owner in the percentage of the

undivided interest previously owned by such owner in the common

areas and facilities ; and

(c) any encumbrance affecting any of the apartment shall

be deemed to be transferred in accordance with the existing priority

to the percentage of the undivided interest of the apartment owner

in the property as provided herein.

Action by association

on behalf of

apartment owners.

16. Without limiting the rights of any apartment owner, action

may be brought by the association on behalf of any apartment

owner as his respective interest may appear, with respect to any

cause of action relating to the common areas and facilities.

Right of association

to maintain, repair

and replace

common areas

and facilities, etc.

17. The association shall have right of access to each apartment

from time to time during reasonable hours, for the maintenance,

repair and replacement of any of the common areas and facilities

therein or accessible therefrom, or for making emergency repairs

therein to prevent any damage to the common areas and facilities

or to other apartments.

Common profits and

expenses.

18. (1) The common profits of a property shall be distributed

among, and the common expenses shall be charged to, the

apartment owners according to the percentage of the undivided

interest in the common areas and facilities.

(2) Every apartment owner shall, notwithstanding his

waiver of the use or enjoyment of any of the common areas and

facilities, be liable to be charged to the common expenses under

sub-section (1).

(3) Where the apartment owner is not in occupation of

the apartment owned by him, the common expenses payable by

such apartment owner may be recovered from the person in the

occupation of the apartment.

(4) The apartment owner shall be liable to pay interest, at

such rate as may be prescribed for the delay in payment of charges

under sub-section (1).

Common expenses

to be charged on

property.

19. All sums assessed by the association as the share of the

common expenses chargeable to any apartment shall, constitute a

charge on such apartment, subject to the prior claim, if any,-

(i) of the Government in respect of land revenue or any

money recoverable as land revenue;

(ii) of any local authority in respect of tax or other

assessment; and

(iii) of the mortgage, in respect of all sums unpaid.

Separate

assessment.

20. Notwithstanding anything to the contrary contained in any

law for the time being in force,-

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(a) each apartment and its percentage of undivided

interest in the common areas and facilities shall be deemed to be a

separate property for the purpose of assessment of tax on land and

building leviable under such law and shall be assessed and taxed

accordingly; and

(b) the building, or the property or any of the common

areas and facilities thereto, shall not be assessed to any such tax

separately.

21. (1) Every association or federation, as the case may be,

shall keep proper books of accounts and prepare a receipts and

expenditure account and a balance-sheet at the end of every

financial year and shall cause them to be audited within three

months therefrom, by an auditor to be appointed by the association

or federation, as the case may be, in the manner as may be

prescribed.

Accounts.

(2) Every association or federation, as the case may

be, shall within such period as may be prescribed, file with the

competent authority—

(i) an authenticated copy of such receipts and

expenditure account, balance sheet and the auditor's report

thereon; and

(ii) a statement of the names, addresses and

occupations of the members of the association or federation, as the

case may be, during the relevant financial year.

(3) The competent authority shall have the power to issue

directions to the association or federation, from time to time, with

reference to the accounts and the auditor's report, so filed and such

direction shall be binding upon the association or federation, as the

case may be.

22. Where any apartment has been sold or otherwise

transferred, the purchaser or the transferee, as the case may be,

of the apartment shall be jointly and severally liable with the vendor

or the transferor for all unpaid assessments against the latter

towards his share of the common expenses upto the time of sale or

transfer without prejudice to the purchaser’s or transferee’s right to

recover from the vendor or transferor, the amount, if any paid by the

purchaser or transferee therefor. Any such purchaser or transferee

shall be entitled to a statement from the association setting forth the

amount of the unpaid assessment against the vendor or transferor

and such purchaser or transferee shall not be liable for, nor shall the

apartment sold or transferred, be subject to a charge for any unpaid

share of common expenses against such apartment accrued prior

to such sale or transfer in excess of the amount setforth in such

statement.

Joint and several

liability of

vendor, etc., for

unpaid common

expenses.

23. (1) All apartment owners, tenant of such owners,

employees of apartment owners or tenants or any other person who

may, in any manner, use the property or any part thereof to which

this Act applies, shall be subject to the provisions of this Act, the

bye-laws and the rules made thereunder.

Act to be binding on

apartment owners,

tenants, etc.

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TAMIL NADU GOVERNMENT GAZETTE  EXTRAORDINARY

(2) All agreements, decisions and determinations made by

the society or the association, as the case may be, in accordance

with the provisions of this Act or the bye-laws shall be deemed to be

binding on all apartment owners.

Penalty.

24. (1) Whoever contravenes, any of the provisions of this Act,

rules, orders or directions issued thereunder or bye-laws shall, at the

instance of the association or an apartment owner or any person or

the competent authority, on conviction be liable to a fine which may

extend to one lakh rupees and in case of continuing contravention,

to an additional fine which may extend to five hundred rupees for

every day during which such contravention continues after the

conviction.

(2) The provisions of this section shall apply without

prejudice to the provisions contained in sections 9, 19 and 22.

Control and

supersession.

25. (1) If the board of managers of an association fail to

perform their functions under this Act or the bye-laws, on receipt of

a complaint from the association, or an apartment owner, in such

manner, as may be prescribed, the competent authority may give

such direction, as it deems fit.

(2) If the competent authority is of the opinion that the

functioning of any manager or the board of managers of any

association is detrimental to the interest of the association or of the

apartment owners or is against the public interest, the competent

authority may give a notice to the manager or the board of

managers, to show cause, as to why he should not be removed or,

the board not be superseded, as the case may be. If the reply of the

manager or the board of managers is not considered satisfactory,

the competent authority may, by order remove the manager or

supersede the board of managers, as the case may be, and appoint

any member from amongst the members of that association or any

other person as administrator to perform the functions of the board

of managers, for a period not exceeding six months:

Provided that the competent authority may, if it considers

necessary so as to do, by order extend the said period for a further

period, not exceeding six months at a time, so, however, that the

aggregate period shall not exceed three years.

Act to override other

laws.

26. (1) The provisions of this Act shall have effect

notwithstanding anything inconsistent therewith contained in

any other law for the time being in force or any custom, usage or

agreement or decree or order of a court, tribunal or other authority.

(2) Save as otherwise provided in sub-section (1), the

provisions of this Act, shall be in addition to, and not in derogation

of, any other law for the time being in force.

Removal of doubts.

27. For the removal of doubts it is hereby declared that the

provisions of the Transfer of Property Act, 1882 shall, in so far as

they are not inconsistent with the provisions of this Act, apply to

every apartment together with its undivided interest in the common

areas and facilities of such apartment as those provisions apply in

relation to any immovable property and the provisions of this Act

shall take effect notwithstanding anything to the contrary contained

in any contract.

Central Act IV of

1882.

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TAMIL NADU GOVERNMENT GAZETTE  EXTRAORDINARY

28. If any difficulty arises in giving effect to the provisions

of this Act, the Government may, by an order published in the

Tamil Nadu Government Gazette, make such provisions not

inconsistent with the provisions of this Act, as appear to them to be

necessary or expedient for removing the difficulty:

Power to remove

difficulties.

Provided that no such order shall be made after the expiry of

a period of two years from the date of commencement of this Act.

29. The Government, may, by order, exempt any building or

class of buildings from all or any of the provisions of this Act or from

any rules made thereunder, subject to such conditions, as may be

prescribed.

Power to exempt.

30. (1) The Government may make rules for carrying out the

purposes of this Act.

Power to make rules.

(2) (a) All rules made under this Act shall be published

in the Tamil Nadu Government Gazette, and, unless they are

expressed to come into force on a particular day, shall come into

force on the day on which they are so published.

(b) All notifications issued under this Act shall, unless

they are expressed to come into force on a particular day, come into

force on the day on which they are so published.

(3) Every rule made or notification or order issued under

this Act shall, as soon as possible, after it is made or issued, be

placed on the table of the Legislative Assembly, and if, before the

expiry of the session in which it is so placed or the next session, the

Assembly makes any modification in any such rule or notification

or order, or the Assembly decides that the rule or notification or

order should not be made or issued, the rule or notification or order

shall thereafter have effect only in such modified form or be of no

effect, as the case may be, so, however, that any such modification

or annulment shall be without prejudice to the validity of anything

previously done under that rule or notification or order.

Tamil Nadu Act

7 of 1995.

31. (1) The Tamil Nadu Apartment Ownership Act, 1994

(hereinafter referred to in this section as the said Act) is hereby

repealed.

Repeal and savings.

(2) Notwithstanding such repeal, any act or anything done

under the said Act shall be deemed to have been done under this

Act and may be continued and completed under the corresponding

provisions of this Act.

(3) Notwithstanding anything contained in this Act, rules,

orders, notifications, bye-laws or any other order made or issued

before the commencement of this Act and in force on the date of

such commencement providing for or relating to any of the matters

for the furtherance of which this Act is enacted shall continue to be

in force and effective as if they are made under the corresponding

provisions of this Act unless and until superseded by anything done

or any action taken under this Act.

(By Order of the Governor)

C. GOPI RAVIKUMAR,

Secretary to Government (Legislation),

Law Department.

PRINTED  AND  PUBLISHED  BY  THE COMMISSIONER  OF  STATIONERY  AND  PRINTING, CHENNAI

ON  BEHALF  OF  THE  GOVERNMENT  OF  TAMIL  NADU