TN govt sets new property values, sparks debate on registration charges

Tamil Nadu government established the composite value for properties on over three lakh roads and streets statewide. In Chennai alone, nearly 1.5 lakh streets and roads now have designated composite values, with the highest reaching 28,500 per sq ft around the Boat Club area. The registration charges are a fixed 7% of the composite value. For instance, a 1,000 sq ft flat on St Mary's Road in Mylapore will incur 13 lakh as registration charges at 7% of the composite value, set at 15,000 per sq ft. This is a notable change from the previous 8.5 lakh registration charges for a flat with an undivided share (UDS) value of 50 lakh and construction cost of 10 million. In North Chennai's Muthialpet, from Thambu Street to Mooker Nallamuthu Street, the rate is established at 16,500 per sqft, while Bazullah Road in T Nagar maintains the same composite value. The suburban Tambaram sees the lowest values ranging from ?3,800 to around Rs 6,000. An official from the state registration department explained that not all streets were covered, particularly those unsuitable for multi-storied buildings. The values were determined based on the lowest rate in a basic apartment complex, which is actually Rs 500 less. Despite some builders expressing contentment with the new rates, they advocate for a reduction in the stamp value from 7% to 4%. The government had previously introduced a three-tier guideline value, but after facing opposition from developers and home-buyers due to higher registration charges, it was subsequently rolled back.