CHENNAI: The Tamil Nadu Inspector General of Registration (IGR) has resolved a long-pending ambiguity over the applicability of a stamp duty exemption to the successor entities of the state’s power utility following its restructuring in 2024. In a circular issued on Wednesday, the IGR clarified that the TNPDCL and TNPGCL will continue to enjoy the exemption under Section 8G of the Indian Stamp Act, 1899, which waives stamp duty on property transfers involving government entities in cases such as strategic sales, disinvestment, demergers and liquidation.
The exemption stems from a 2012 order that waived stamp duty and registration charges on gift deeds executed by private developers who transfer land to the power utility for establishing substations. Developers are required to pay one percent of the land’s guideline value as stamp duty.
The benefit was originally extended to the erstwhile Tangedco. However, uncertainty arose after Tangedco was restructured in 2024.
The IGR has directed all registrars and sub-registrars to extend the benefit while registering gift deeds in favour of the two companies.