The Tamil Nadu Panchayats (Acquisition and Transfer of Immovable Property) Rules, 2000

Scope

The Tamil Nadu Panchayats (Acquisition and Transfer of Immovable Property) Rules, 2000 govern property acquired by a Panchayat, property belonging to a Panchayat, and property vested in a Panchayat but not owned by it. They affect private owners selling property to a Panchayat, and people or organisations receiving, buying or leasing Panchayat property.

Acquisition by a Panchayat

A Panchayat acquiring immovable property must meet conditions including:

• Public health and sanitary approval is generally required when property is intended for purposes other than roads, bridges, culverts or quarries.
• Government engineering approval is required when the estimated cost exceeds ten thousand rupees.
• Property valued above ten thousand rupees requires additional district approval if intended for educational purposes or dispensaries.
• Acquisition outside the Land Acquisition Act, 1894 requires the Collector's prior approval and a Revenue Department valuation certificate.
• A building requires valuation and structural stability certificates from the prescribed Government engineer.
• Consideration of not less than two thousand rupees requires an encumbrance certificate from the Registration Office and examination by the Panchayat's legal adviser.
• The transfer deed must use the appropriate form in Schedule I.

These conditions do not apply when a Panchayat purchases property sold in execution of a court decree obtained by it.

Transfers and charges

A Village Panchayat or Panchayat Union Council needs the Inspector's prior sanction to transfer, other than by lease, or create a charge over property belonging to it. Government sanction is also required if the property value or charge exceeds fifty thousand rupees. Property vested in but not owned by a Panchayat cannot be transferred contrary to the conditions under which it became vested.

Leases

A lease of Panchayat owned property exceeding three years, or permitting a building or structure, requires the Collector's sanction. Property vested in but not owned by a Panchayat generally cannot be leased for more than twelve months without the Collector's prior sanction.

Roadside and street margin leases require details of the intended use, period and proposed construction materials. Road margins cannot be leased for cultivation. Such leases may be terminated without compensation when removal of a structure is considered necessary in the public interest.

Public notice and payments

Proposed transfers and leases must be publicly displayed at specified Panchayat and government offices, the village chavadi and the property. Transactions exceeding ten thousand rupees also require District Gazette publication, with additional newspaper and local announcement requirements for public auctions.

Village Panchayat transfers generally must make the transferee responsible for applicable government assessment, ground rent, peshkash or quit rent, subject to the stated exceptions.