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Update on Regularisation of Unapproved Plots and Layouts

Tamilnadu Cabinet Simplifies Procedure for Regularisation of Unapproved Plots

  • Deadline Extended to May 3, 2018
  • Development Charges Reduced
  • Open Space Reservation Charges Dropped
  • All Layouts, irrespective of the number of Plots Sold, are eligible for Regularisation
  • Old Layouts will be deemed as Regularised

In a major relief to those who are holding on to Unapproved Plots, the Tamilnadu Government has simplified the  Rules for Regularising Unapproved Plots and Layouts published on May 4, 2017, vide G.O.(Ms).No.78.

The Press Release issued by the Government, has extended the Last Date for Applying for Regularisation by 6 months, from Nov 3, 2017 to May 3, 2018.

The other Changes on the Regularisation Rules:

1) Applicability of the Rules: The Existing Rules make it compulsory for all the Plots Registered on or before Oct 20, 2016 to Apply for Regularisation. It  didn’t clarify about the fate of Plots in Layouts or Sub-divisions that were registered decades ago. A plain reading of the Rules gave the impression that all the plots in Tamilnadu, irrespective  of the date of registration, shall compulsorily apply for Regularisation.

This is clarified Now as under:

a) The Rules for Regularisation shall be applicable only for Unapproved Plots Registered i) in the Chennai Metropolitan Area between August 5, 1975 (the date when the First Master Plan was Notified) and October 20, 2016, ii)in the rural areas outside the Chennai Metropolitan Area for layouts formed between November 29, 1972 (the date when DTCP came into existence) and October 20, 2016, iii) and in the urban local bodies outside the Chennai Metropolitan Area, for layouts formed between January 1, 1980 (the date when the first Regularisation Scheme was rolled out) and October 20, 2016.

b)All the Plots Registered before these dates in those areas, shall  be ‘deemed as Regularised’, and owners need not apply for Regularisation.

2)Process of Regularising Layout Framework is simplified:The Rules gave elaborate procedures  for Regularising the three different categories of layouts, namely, i) Layouts where upto 1/3 of the Plots were sold, ii) Layouts where upto 2/3 of the Plots were sold, and iii) Layouts where more than 2/3 of the Plots were sold. This provision, we understand, was one of the reasons for the Scheme being a non-starter.

This clause is removed now.

To make it more clear, the Layouts shall be Regularised on ‘as is where is’ basis, instead of going through the procedure for Approving the Layout Framework first and then the Plot.

Now, even if one plot is registered in a layout, it is eligible for Regularisation under these changed Rules. 

3) OSR Charges:The procedure for calculating Open Space Reservation (OSR) charges was another factor that hindered the process of Regularisation. This has been simplified now. Layout promoters, shall pay 10% of the Guideline Value of the unsold Plots in a Layout as OSR.

Individual Plot Owners seeking Regularisation need not pay any OSR charges. Needless to say that this will be a huge savings for Plot owners.

4)Revised Development Charges:

The Development Charges have also been reduced further

The Revised Charges are: (Rs/ Square Meter)

Charges City Municipal Corporation Area Municipal Area Town Panchayat Village Panchayat Area.
Special and Selection Grade Grade-I and Grade-II 
1.Existing Development Charges(As per May 4 2017  Rules) 600 350 250 150 100
2.Reduced Development Charges 500 250 150 75 25
3.Regularisation Charges 100 60 60 30 30
Total Charges (2+3) 600 310 210 105 55

The Rates given above are per Square Meters. 1 Sq Meter = 10.7639 Sq Ft

Accordingly, the Charges (Regularisation+Development) for getting Regularised  1 Sq ft in Chennai Metropolitan Area will be, 600/10.7639= Rs.55.75

For a 2400 Sqft Plot in a Chennai Metropolitan Area, the Charges (Regularisation + Development) will be 2400×55.75= Rs 1,33,781/-(Rs One Lakh Thirty Three Thousand Seven Hundred and Eighty One Only)

No Other Charges are Payable, according to the Rules.

Punitive Clauses Remain

Failure to get Approval within the stipulated 6 months period(now 12 months period), will make the Plots ineligible for Plan Approval, EB, Water and Sewerage connections. Also, by implication, registration of such Unapproved Plots will not be allowed after the deadline of May 3, 2018. 

The Government has already put in place a Portal exclusive for this purpose.

With the Changes in place, it is prudent to avail the opportunity provided by this amnesty scheme to get the Unapproved Plots Regularised.

If the Plots are not Regularised, there won’t be any takers for such plots in future.

This will help improve Market Sentiments

 It appears, out of the 13 Lakhs+ Unapproved Plots in the State, only a fraction of, say, less than 25,ooo Plot owners have applied for Regularisation. Now, these Changes will encourage Plot owners to apply for Regularisation, which in turn will release huge stocks of Plots into the market.

This, along with the slashing of Guideline Value already announced, is bound to result in more Real Estate transactions in the near future.

Let’s hope good days are ahead for the Real Estate sector.

 

Regularisation of Unapproved Plots and Layouts

User Manual of Procedure for Regularisation of Unapproved Plots

Press Release dated 12.10.2017

 

3 thoughts on “Update on Regularisation of Unapproved Plots and Layouts

  1. Dear Team, I have one major doubt.. I had purchased the unapproved house site on dec 2015, I got building plan from concerned local body (president). G+1 building with one dwelling unit constructed as per plan. Now age of the property is around 2years old. I had obtained patta in my name. I am paying property tax and eb bill for the property. My property in gram panchayat limit.

    My doubt is whether i need to apply for regularisation of land or not

    Kindly clarify.

  2. Hi, the layout was framed in 1996, I purchased plot from from first owenr in April 2017(ban lift by Court =>allowed registration for the plot s registered first time before Oct 20th 2016). Is my plot eligible for regularisation

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