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TN Stamp Duty Rules: Draft Guideline Values Unveiled in Chennai

As part of the state-wide guideline value revision, the draft guideline values for revenue village-wise immovable properties in the Chennai district have been unveiled. Any objections to the same have to be submitted by stakeholders within 15 days.

Likewise, draft guideline values for other districts in the state have also been made available to the public.

This exercise is being carried out following the judgment of the Madras High Court pronounced earlier this year.[1] Through this decision, the Court upheld the order setting aside the resolution dated March 30, 2023, which cancelled the 33% concession provided in 2017 and restored the 2012 guideline values. With this, the government was directed to follow the guideline values fixed in 2017 until the same was revised by following due process of law.

Guideline value revisions made after 2010 amendment

Subsequent to a state amendment made to the Indian Stamp Act, 1899, a valuation committee at the state level and valuation sub-committees at the district level were set up in 2010. The revised guideline values so arrived at were implemented from April 1, 2012. These were next revised a little over five years later, with a uniform reduction of guideline value by 33% with effect from June 9, 2017.

However, last year, the state level valuation committee, vide a resolution dated March 30, 2023, cancelled the aforementioned reduction and sought to revert back to the guideline values from 2012. Thereafter, a writ petition came to be filed by the Confederation of Real Estate Developers’ Associations of India (CREDAI), Chennai, before the Madras High Court, challenging this resolution. The petition was allowed by the Single Judge Bench which set aside the resolution citing non-adherence to the due process envisaged under Section 47-AA of the Indian Stamp Act, 1899, and provisions of the Tamil Nadu Stamp (Constitution of Valuation Committee For Estimation, Publication And Revision of MVG of Properties) Rules, 2010. A direction was also issued to follow the 2017 guideline values until a revision was carried out following due process. On appeal, this decision was upheld by the Division Bench in March of this year, with the Court terming actions of the appellants as a colourable exercise of power.

[1] State of Tamil Nadu & Anr. v. CREDAI, Chennai & Ors. (WA 512/2024); Judgment can be accessed here.