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Tamil Nadu Combined Development Rules legal tangle puts builders in Chennai in a fix

Builders Association of India said that as of now due to conditional approvals, all buyers are reluctant to come forward to book or buy the flats.

C Shivakumar

CHENNAI: Builders and developers are worried that the Chennai Metropolitan Development Authority (CMDA) and Directorate of Town and Country Planning (DTCP) are giving conditional approval to plans after the Tamil Nadu Combined Development Rules (TNCDR) is facing legal scrutiny at Madras High Court.

The rules, which were passed in February this year, are facing a legal challenge at Madurai bench of Madras High Court, after the judges observed that all orders passed under the rule, are subject to the outcome of the writ petition.

The approvals now are stamped, stating that ‘it is conditional subject to the outcome of the writ petition’, putting the builders and developers in difficulty by the planning authorities in CMDA and DTCP. Builders Association of India chairman S Rama Prabhu has conveyed to the Housing secretary that the stamp of conditional approval on building plan, is posing a huge challenge to small builders. 

He said that builders could not avail the increase in Floor Space index from 1.5 to 2.0 due to non-receipt of approval last month. Now, while approval is being given, it is conditional based on the outcome of the court case. 

Rama Prabhu says, “If construction as per Combined Development and Building Rules, 2019, is carried out utilising the available FSI and at a later stage if the court case is not in favour, what will be the fate of the additional area constructed according to the above rules since this involves a lot of financial implications and legal problems?”

He said right now due to conditional approvals, all buyers are reluctant to come forward to book or buy the flats.

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