The Tamil Nadu government slashed the guideline value for property deed registrations based on recommendations by officials who studied models of other States, including Gujarat.
“In Gujarat, the government increased the guideline value in 2011. But subsequently, it reduced the actual increase by 50%. Our officials visited Gujarat and other places before recommending a decrease in guideline value. Puducherry had also reduced the guideline value,” said an official.
Guideline value cut by 33% in T.N.
According to an official, who was a member of the team that studied the change of guideline value in other States, the delegation was convinced that the new rates in Gujarat “helped citizens who were in need of homes and land for business at reasonable rates.”
Sources in the Registration Department too said Tamil Nadu officials were convinced that the guideline values needed to be rationalised.
For instance, Usman Road in T.Nagar, Chennai, which is deemed to be the retail business capital of the State, has the maximum guideline value at the rate of ₹25.000 per square feet. In contrast, a property located in a similar environment in Vijayawada, the maximum guideline value is only ₹10,000 per sq ft. As a result of the latest rationalisation, starting Friday, the guideline value of propertyon Usman Road will fall to ₹16,750 per sq ft.
“We realised that consultations were held by States such as Andhra Pradesh with various fora of builders, valuers and developers for fixing the guideline values. But similar consultations were not held properly before increasing the guideline value in 2012. This prompted us to uniformly revise it downwards,” explained an official.
Income for government
(₹ in crores)
|No. of regd. documents|
|2016-17 (Up to July ’16)||2,732.80||8,03,805|
** Following the steep increase in the guideline value across the State in 2012, the number of documents getting registered came down sharply in 2012-13 and has followed a downward trend since then.