The Government of Tamil Nadu has set up a valuation committee to revise the guideline value of properties for all areas in Tamil Nadu. The committee will also review the existing categories of properties in order to streamline the registration process. It is three years since the guideline value was last revised.
“It will take about a year to review all the properties. The guideline value would be revised to reflect its true market value and reduce the discrepancy between the two values.” explained D. Sabitha, Inspector General of Registration.
“At present we have 52 categories of properties for registration purpose. This may be enhanced to more than 100. Properties belonging to the government such as the water bodies and tanks; properties belonging to the Hindu Religious and Charitable Endowment department and Wakf Board would be clearly categorised and indicated. The guideline value of these properties will be indicated as “0”. This would alert and inform the buyers the nature of the properties,” Ms. Sabitha added.
The valuation committee consists of 14 members representing different departments such as Land Administration, Income Tax, Town Panchayats, Public Works Department and Institution of Chartered Valuers.
Welcoming the government decision to comprehensively revise the guideline value, C.H. Gopinath Rao, former National President of Institute of Valuers said that “the wide gap between the guideline and market value is a cause of concern since it often leads to the undervaluing of property for registration purposes causing loss to the exchequer.”
Referring to registration of housing sites bought in unapproved layouts, Ms. Sabitha pointed out that “buyers must ensure that the housing sites they register are located in approved layouts and the documents are in order. Buying in unapproved layouts would be difficult to regularise.”
It is more than a year since the Registration (Tamil Nadu Amendment) Act, 2009 that empowers registering officer to refuse registration of documents such as the housing sites in unapproved layouts. Bhoodan Yagna Board received President's assent, but it is yet to be notified by the government for implementation.