CHENNAI: Owning a home in the city will get pricier. Govt has increased guideline values for land by upto 10% in the city and a few old corporations, effective July 1, reverting to March 2023 values, but with a slight increase in some areas. The guideline value per square foot on Alandur Road, Rs 5,500 until June 30, is now Rs 6,100. In Okkiyam-Thuraipakkam, it rose from Rs 6,000/sqft to Rs 6,600/sqft and on Abhiramapuram 3rd Street from Rs 16,000/sqft to Rs 17,600/sqft.
The revision, covers 2.19 lakh streets and 4.46 crore survey numbers and subdivision numbers. While values in core Chennai and old corporations such as Coimbatore, Trichy, Salem, and Vellore rose significantly, those in other areas remain unchanged.
Some builders said this will raise premium FSI (floor space index) charges that will have to be passed on to buyers.
Need for revision arose after justice P Velmurugan of Madras HC set aside a March 2023 govt circular increasing guideline values in cities such as Chennai, Coimbatore, and Madurai by 33%, by citing procedural infirmities.
Registration department offcicials say TN Stamp Rules of 2010 formed sub-committees for each district to revise guideline values. This was implemented in 2012 and in 2017, when guideline values were cut by 33%. A March 30, 2023, circular increased value by 33%, effective April 1, 2023, while reducing registration fee and other charges.
Following HC order, the valuation committee guided sub-committees in assessing guideline values before a massive exercise. The sub-committees, headed by collectors, prepared draft guideline values. “The draft was then uploaded on the website and displayed at sub-registrar offices across the state for public response and objections. We received around 1,000 responses, and all inputs were included in the draft.” Final draft was presented before Central Valuation Committee and cleared on June 29. “On Monday, 8,305 documents were registered under the new values, with 91 pending documents.”
A Mohamed Ali, president of Credai Chennai, said registration department conducted an elaborate study. “This time it did its homework.”
Builders said they were not against the hike but wanted the changes implemented after a certain period. “Everything is announced and implemented in a day. It is hard to come to terms with sudden changes,” said one.
G Mohan, past president of Chennai Southern Builders Association, said revised values were not reflected on all streets. “In places such as Alandur and Pallavaram we had difficulty registering documents.” A registration department official said glitches would be addressed soon.
