CHENNAI: In a significant development, the Madras High Court, on Thursday, overturned a circular issued by the Tamil Nadu government in March 2023, which had proposed a 33% increase in the guideline value of properties in cities such as Chennai, Coimbatore, and Madurai.
Justice P Velmurugan, citing procedural irregularities, set aside the circular, emphasizing that while the government has the authority to increase guideline values, it must follow the prescribed procedures. This includes the constitution of an expert committee and a public hearing before implementing any hike.
The state had previously established sub-committees for each district in 2010 to revise guideline values, and in 2012, these revisions were put into effect. In 2017, the values were once again revised, with the state reducing the guideline value of all land across the state by 33%.
Through the contested circular dated March 30, 2023, the state proposed an increase of 33% in the value, effective from April 1, 2023, while simultaneously reducing the registration fee and other charges.
The move faced opposition from CREDAI’s Chennai chapter, as well as individual developers Shree Mahalaxmi Enterprises and Magnum Infra. The court, accepting their arguments, emphasized the necessity for adherence to legal procedures in such matters.
Justice Velmuguran stated, “While revising the guideline value, they have to get the sub-committee’s report/expert’s report, and the statutory evaluation committee should fix it. Before revising the charges, they have to follow a procedure like calling for objections from the public and thereafter fix it or revise it. But, in this case, they have not done it, and therefore, as pointed out by the petitioners, it has to be done in the manner known to law.”
Opposing the plea, the state argued that CREDAI and the other petitioners had no locus standi to file the petition and maintained that there was no violation of statutory provisions and rules of the Tamil Nadu Stamp (Constitution of Valuation Committee for Estimation, Publication and Revision of Market Value Guidelines of Properties) Rules, 2010.
