CHENNAI: After witnessing a decline in revenue earned through property registration in 2016-17, the Tamil Nadu government is hoping to net more money during the current financial year as the lifting of the ban on registration of unapproved plots by the Madras High Court and slashing of guideline values by the government will trigger growth.
According to the Policy Note on Stamps and Registration, Rs 7007.74 crore was earned through registration of 20,72,916 documents during 2016-17 against Rs 8562.38 crore with registration of 25,28,561 documents in the previous corresponding period.
The Registration department, which is considered to be one of the major departments that fill the coffers of the government, witnessed ‘downfall’ in the revenue earned and the documents registered because of the ban imposed by High Court on registration of plots in unapproved layouts on September 9, 2016.
However, the High Court permitted, in its order on June 15, 2017, registration of plots in unapproved layouts that were registered before October 20, 2016.
“Consequently, it is expected that there will be a rise in the revenue earned and the documents registered (in the current year),” the policy note stated. It may be noted that the Tamil Nadu government slashed the guideline value of properties by 33 per cent early last month raising hopes of the realty sector.
However, the registration fee in respect of instruments of conveyance, exchange, gift and settlement was hiked to 4 per cent from the existing 1 per cent leading to outcry from the sector and political parties. The changes in the guideline value and registration fee came into effect from June 9.