Chennai's Guideline Values Raised Up to 10% by Government
Real Estate

Chennai's Guideline Values Raised Up to 10% by Government

The government has announced an increase in guideline values for land in the city and a few old corporations, effective July 1, reverting to values from March 2023 but with some areas seeing a slight increase. For instance, the guideline value per square foot on Alandur Road, which was Rs 5,500 until June 30, has been revised to Rs 6,100. In Okkiyam-Thuraipakkam, it rose from Rs 6,000/sq ft to Rs 6,600/sq ft, and in Abhiramapuram 3rd Street, it increased from Rs 16,000/sq ft to Rs 17,600/sq ft.

The revision affects 2.19 lakh streets and 40.46 million survey numbers and subdivision numbers. Values in core Chennai and old corporations like Coimbatore, Trichy, Salem, and Vellore have seen significant increases, while those in other areas remain unchanged.

According to some builders, this increase will lead to higher premium FSI charges, which will inevitably be passed on to buyers. The need for this revision arose after a court decision by justice P Velmurugan of Madras HC invalidated a March 2023 government circular that had increased guideline values by 33% in cities including Chennai, Coimbatore, and Madurai, citing procedural issues.

Officials from the registration department explained that sub-committees were formed for each district under the TN Stamp Rules of 2010 to revise guideline values. This process, initially implemented in 2012 and adjusted in 2017 with a 33% decrease in values, saw a reversal with the March 30, 2023 circular. Following the court order, sub-committees led by collectors drafted new guideline values. These drafts were published online and displayed at sub-registrar offices statewide for public feedback, resulting in approximately 1,000 responses, all of which were considered in the final draft.

A Mohamed Ali, president of Credai Chennai, acknowledged the thoroughness of the registration department's study this time around. However, builders expressed concerns over the sudden implementation of these changes, suggesting they preferred a phased approach. G Mohan, past president of Chennai Southern Builders Association, noted discrepancies in the application of revised values, particularly in areas like Alandur and Pallavaram, where registering documents became challenging. Registration department officials assured that these issues would be resolved promptly.

The government has announced an increase in guideline values for land in the city and a few old corporations, effective July 1, reverting to values from March 2023 but with some areas seeing a slight increase. For instance, the guideline value per square foot on Alandur Road, which was Rs 5,500 until June 30, has been revised to Rs 6,100. In Okkiyam-Thuraipakkam, it rose from Rs 6,000/sq ft to Rs 6,600/sq ft, and in Abhiramapuram 3rd Street, it increased from Rs 16,000/sq ft to Rs 17,600/sq ft. The revision affects 2.19 lakh streets and 40.46 million survey numbers and subdivision numbers. Values in core Chennai and old corporations like Coimbatore, Trichy, Salem, and Vellore have seen significant increases, while those in other areas remain unchanged. According to some builders, this increase will lead to higher premium FSI charges, which will inevitably be passed on to buyers. The need for this revision arose after a court decision by justice P Velmurugan of Madras HC invalidated a March 2023 government circular that had increased guideline values by 33% in cities including Chennai, Coimbatore, and Madurai, citing procedural issues. Officials from the registration department explained that sub-committees were formed for each district under the TN Stamp Rules of 2010 to revise guideline values. This process, initially implemented in 2012 and adjusted in 2017 with a 33% decrease in values, saw a reversal with the March 30, 2023 circular. Following the court order, sub-committees led by collectors drafted new guideline values. These drafts were published online and displayed at sub-registrar offices statewide for public feedback, resulting in approximately 1,000 responses, all of which were considered in the final draft. A Mohamed Ali, president of Credai Chennai, acknowledged the thoroughness of the registration department's study this time around. However, builders expressed concerns over the sudden implementation of these changes, suggesting they preferred a phased approach. G Mohan, past president of Chennai Southern Builders Association, noted discrepancies in the application of revised values, particularly in areas like Alandur and Pallavaram, where registering documents became challenging. Registration department officials assured that these issues would be resolved promptly.

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