Last Updated on 9 months by ChennaiRealties

The Court confirms the Penal Clauses of the GO

The Need for this Clarification 

Clause 15(b) of the Regularisation GO dated 4th May,2017  says that 

” such unapproved plot or layout shall not be registered…”

As a result, no Registration of Unapproved Plots could be done in any SROs in the State in recent weeks. Since the said GO is submitted in the Court and accepted by the Court, and is now part of the Court order dated 12th May 2017, the Government had to approach the Court for Clarifications.

On 15th Jun 2007, the Madras High Court issued the following Clarification on the Writ Miscellaneous Petition filed by the Govt:

“5. It is, thus, clarified that transfer of plots, which had been registered as house sites before 21st October 2016, except those which have been registered in violation of interim orders passed by this Court may be registered. Rule 15(b) is to be construed to apply to those plots which had not been registered as house sites prior to 21.10.2016.

6. The common order dated 12.05.2017 made in W.P.No.19566 of 2015 and other similar writ petitions is clarified to the extent stated above and the application is disposed of accordingly. Needless to mention that Rules shall apply for all other purposes.”

Court Confirms the Penal Provisions 

This means. though the Court through this Clarification has granted permission to register and transfer plots already registered as Plots before 20.10.2016, the stipulation to get them Regularised within the 6 months period remains valid.

According to the other clauses in that Section, failure to get Approval within the stipulated 6 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 6 months period.

The Government has already put in place a Portal exclusive for this purpose, and fixed Nov 3, 2017 as the last date for submission of Applications for Regularisation.

The Procedure for submitting Application and getting Approval is also available in this Portal.

Section 15 of the GO dated 4th May 2017

This section reads as under:

“15.Consequences of non-regularisation.– Where no regularization is ordered under these rules for an unapproved plot or layout; then-

(a) no electricity, water supply, drainage and sewerage connections shall be extended to such unapproved plot or layout;

(b) such unapproved plot or layout shall not be registered under the Registration Act, 1908 (Central Act 9 of 1908) by the Registration Department; and

(c) no building approval shall be given by the authorities concerned for such unapproved plot or layout.

 In order to give effect to the consequences indicated above, the Departments concerned shall make 

necessary amendments in their respective Acts.”

Markets Will Continue to Remain Depressed for Now

This clarification by The Madras High Court is not going to lift the sentiments in the market in any way, is obvious. In fact it had only confirmed the penal clauses in the GO.

The Market Sentiments will continue to be depressed. Because, when the other conditions mentioned in the GO dated 4th May 2017 namely no Plan sanction etc remain valid , no buyer will take the risk of buying an Unapproved plot and then run here and there for Approval.

Also, how the Government gears up it’s machinery for smooth and fast disposal of Applications submitted for Regularisation, will go a long way in clearing the uncertainties associated with the exercise. It’s not clear how it’s going to go about.

Added to this, is the steep increase in the Registration Fee announced last week under the garb of Guideline Value Revision.

Impact of GST on Real Estate Sector, and the effect of implementation of RERA are also other aspects that will add to the negative Market Sentiments.

All these interim orders are about the various clarifications and relief sought by the stake holders.

Read the Judgment dated 12th May 2017, on the Main Petition