CHENNAI: The Tamil Nadu Registration Department has moved to rein in arbitrary escalation of property guideline values by clarifying that isolated high-value land or property transactions should not be treated as benchmark rates for an entire locality, a step welcomed by the state’s real estate industry.
The clarification circular, issued amid growing concerns over rising registration costs, is expected to bring greater uniformity and transparency to property registrations by guiding field-level officials against using sporadic premium deals to fix guideline values for adjacent residential areas.
According to Credai Tamil Nadu, several developers, landowners and homebuyers had faced difficulties as select high-value transactions — often influenced by factors such as main-road exposure, commercial potential, corner plots or special business requirements — were informally treated as reference points for entire streets or neighbourhoods.
The developers’ body said the practice had artificially inflated guideline values in many areas, resulting in higher stamp duty and registration charges while creating uncertainty during document registrations.
Habib WS, president of Credai Tamil Nadu, said the government’s clarification brings much-needed clarity and balance to the system and would reduce arbitrary interpretation during registrations.
The body added that the circular would improve consistency in valuation practices and strengthen confidence in the registration process among developers and end-users, a release stated.