TN govt revises property registration charges

21 Jul 2023 CW Team

The revision affects 20 services provided by the state registration department under section 78 of the Registration Act 1908, and these include activities such as searching registers, making or granting copies of reasons, entries, or documents related to registration, and safe custody and return of documents.

A registration department official stated that the move aims to address issues related to power of attorney, particularly in cases of land grabbing. By increasing the registration charges, they hope to discourage such practices and promote legitimate property sales by landowners.

However, developers are concerned that the hike in registration fees for power of attorney may also impact customers. Sanjay Chugh, city head and director of Anarock Property Consultants, expressed that while it would generate additional revenue for the registration department, it could also impose an extra cost burden on projects planned for joint development or redevelopment.

Sridharan, chairman of Lyra Properties and national vice-president (south) of the Confederation of Real Estate Developers' Associations of India (CREDAI), criticised the steep hike and plans to represent the matter to the government, requesting them to reconsider. He pointed out that this increase in costs could cause hardships for end-users, such as home or plot buyers.

The state registration department has also increased charges for other services, such as private attendance by the sub-registrar at residences, receipt documents for mortgage, partition, family settlement, and release of documents.

An official from the registration department explained that the reasons behind the hikes include the fact that the rates remained unchanged for two decades and the need to boost the revenue of the registration department.

The Tamil Nadu government has recently revised the registration charges for the transfer of power of attorney to non-family members, which may result in increased costs for redeveloping and developing properties. Under the new revision, a fee of 1 per cent of the property's market value must be paid for registration, whereas previously, a flat rate of Rs 10,000 was applicable in such cases.The revision affects 20 services provided by the state registration department under section 78 of the Registration Act 1908, and these include activities such as searching registers, making or granting copies of reasons, entries, or documents related to registration, and safe custody and return of documents.A registration department official stated that the move aims to address issues related to power of attorney, particularly in cases of land grabbing. By increasing the registration charges, they hope to discourage such practices and promote legitimate property sales by landowners.However, developers are concerned that the hike in registration fees for power of attorney may also impact customers. Sanjay Chugh, city head and director of Anarock Property Consultants, expressed that while it would generate additional revenue for the registration department, it could also impose an extra cost burden on projects planned for joint development or redevelopment.Sridharan, chairman of Lyra Properties and national vice-president (south) of the Confederation of Real Estate Developers' Associations of India (CREDAI), criticised the steep hike and plans to represent the matter to the government, requesting them to reconsider. He pointed out that this increase in costs could cause hardships for end-users, such as home or plot buyers.The state registration department has also increased charges for other services, such as private attendance by the sub-registrar at residences, receipt documents for mortgage, partition, family settlement, and release of documents.An official from the registration department explained that the reasons behind the hikes include the fact that the rates remained unchanged for two decades and the need to boost the revenue of the registration department.

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