Tamil Nadu Residents Face Challenges in Forming Apartment Associations
Real Estate

Tamil Nadu Residents Face Challenges in Forming Apartment Associations

Apartment politics and a lack of awareness regarding the Tamil Nadu Apartment Ownership Act are hindering the registration of residents' associations with the state government. In many apartment complexes, residents have yet to reach a consensus on the roles of president and secretary, and some remain entirely unaware of the relevant regulations.

The recently introduced Tamil Nadu Apartment Ownership Rules state that a minimum of four apartment owners must establish an association, draft bylaws, and register it before pursuing redevelopment. Furthermore, redevelopment can proceed if two-thirds of flat owners give their consent. The rules also specify penalties for those who fail to pay maintenance charges.

Despite these provisions, the state registration department has not observed a significant increase in registrations. This year, only 150 associations have registered in the Chennai zone, contributing to a total of approximately 6,000 registered to date. In the Tambaram zone, only ten associations register monthly, most being new complexes rather than due to the new redevelopment rules, as noted by a registration department official.

V. Rangan, a retired customs official and member of the T Nagar Residents Association, remarked that the rules seem to favour builders. He explained that if the value of an apartment complex exceeds Rs 250 million or spans four grounds (with one ground equal to 2,400 square feet), a committee of experts should be appointed by the competent authority to inspect the building for stability and assess its useful life for the remaining years. He suggested that the rules should also address the building’s maintenance, including a whitewash at least once every eight years, and that at least one resident should have owned an apartment for ten years or more.

Residents of older apartments are still hesitant to form associations due to internal conflicts. Raghukumar Choodamani, convener of the Perambur Neighbourhood Development Forum, pointed out that as long as there is no sense of unity among residents, many obstacles will persist before properties can be redeveloped.

D Neelakannan, president of the Alliance of Resident Welfare Associations, stated that ego and trust issues present significant barriers. He explained that residents are often reluctant to collaborate with others to establish an association, fearing mismanagement of funds. Additionally, many resist adhering to the mandatory bylaws associated with forming an association.

Apartment politics and a lack of awareness regarding the Tamil Nadu Apartment Ownership Act are hindering the registration of residents' associations with the state government. In many apartment complexes, residents have yet to reach a consensus on the roles of president and secretary, and some remain entirely unaware of the relevant regulations. The recently introduced Tamil Nadu Apartment Ownership Rules state that a minimum of four apartment owners must establish an association, draft bylaws, and register it before pursuing redevelopment. Furthermore, redevelopment can proceed if two-thirds of flat owners give their consent. The rules also specify penalties for those who fail to pay maintenance charges. Despite these provisions, the state registration department has not observed a significant increase in registrations. This year, only 150 associations have registered in the Chennai zone, contributing to a total of approximately 6,000 registered to date. In the Tambaram zone, only ten associations register monthly, most being new complexes rather than due to the new redevelopment rules, as noted by a registration department official. V. Rangan, a retired customs official and member of the T Nagar Residents Association, remarked that the rules seem to favour builders. He explained that if the value of an apartment complex exceeds Rs 250 million or spans four grounds (with one ground equal to 2,400 square feet), a committee of experts should be appointed by the competent authority to inspect the building for stability and assess its useful life for the remaining years. He suggested that the rules should also address the building’s maintenance, including a whitewash at least once every eight years, and that at least one resident should have owned an apartment for ten years or more. Residents of older apartments are still hesitant to form associations due to internal conflicts. Raghukumar Choodamani, convener of the Perambur Neighbourhood Development Forum, pointed out that as long as there is no sense of unity among residents, many obstacles will persist before properties can be redeveloped. D Neelakannan, president of the Alliance of Resident Welfare Associations, stated that ego and trust issues present significant barriers. He explained that residents are often reluctant to collaborate with others to establish an association, fearing mismanagement of funds. Additionally, many resist adhering to the mandatory bylaws associated with forming an association.

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