Caution Deposit Guidelines for Additional IT and ITES Construction
The Chennai Metropolitan Development Authority, Administration Division, issued these guidelines, which do not print an order number, on 4 February 2013. They clarify that an additional caution deposit is not collected when planning permission is sought for further construction in an approved IT or ITES building for which the caution deposit was already collected, although applicable charges and fees remain payable for the additional floor area.
What the guidelines cover
The Chennai Metropolitan Development Authority, Administration Division, issued the guidelines dated 4 February 2013 for planning permission applications involving additional construction in IT and ITES buildings. No order number is printed in the document.
The clarification concerns buildings that previously received Chennai Metropolitan Development Authority approval with a caution deposit. It addresses later applications for additions, often on terrace floors, including space for incidental uses such as employee canteens.
Caution deposit position
The Chennai Metropolitan Development Authority guidelines state that caution deposits apply to IT and ITES buildings when they use concessions, including additional floor space index, available under the applicable Development Control Rules or Development Regulations.
The document records the following basis for calculating the original caution deposit:
- 10 per cent of the guideline value of the land, or
- 20 per cent of the guideline value of the land area equal to the additional floor area used,
- whichever amount is higher.
The clarification prevents the 10 per cent land value component from being collected a second time for the same already approved building.
Key provisions
For an IT or ITES building that was approved earlier and for which the caution deposit was already collected:
- No additional caution deposit is collected when planning permission is sought for additional construction.
- Applicable charges and fees must still be collected for the additional floor area.
- The exemption applies where the earlier caution deposit was collected as 10 per cent of the guideline value of the land.
- The document took immediate effect on 4 February 2013.
Who may be affected
The Chennai Metropolitan Development Authority clarification affects owners and applicants seeking permission for additions to previously approved IT and ITES buildings. It is also guidance for Deputy Planners, Assistant Planners and Planning Assistants in the Area Plans Unit who process these applications.
Applicants should note that the clarification removes only the repeat caution deposit in qualifying cases. It does not remove the charges and fees applicable to the proposed additional floor area.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Must I pay another caution deposit when adding construction to an approved IT or ITES building?
No, if the Chennai Metropolitan Development Authority already approved the building and collected the caution deposit at the earlier approval stage. Applicable charges and fees for the additional floor area must still be paid.
Does the clarification cover a proposed employee canteen on a terrace floor?
The document identifies terrace-floor additions for incidental uses such as employee canteens as the type of application that led to the clarification. The exemption applies when the building was already approved and the caution deposit was collected earlier.
How was the original caution deposit calculated?
The document states that it was the higher of 10 per cent of the guideline value of the land or 20 per cent of the guideline value of the land area equal to the additional floor area used.
When did the Chennai Metropolitan Development Authority clarification take effect?
The document is dated 4 February 2013 and states that it takes immediate effect.
