L.A. Bill No. 12 of 2018, The Tamil Nadu Town and Country Planning (Amendment) Act, 2018
The Government of Tamil Nadu published L.A. Bill No. 12 of 2018, The Tamil Nadu Town and Country Planning (Amendment) Act, 2018, to amend the Tamil Nadu Town and Country Planning Act, 1971 and provide legal authority for shelter charges supporting affordable urban housing. The Bill gives statutory backing to charges ordered in Government Order G.O.Ms.No.135, Housing and Urban Development Department, dated 21 July 2017, and treats the amendment as having come into force from that date.
What the Bill changes
L.A. Bill No. 12 of 2018 was introduced in the Legislative Assembly of the State of Tamil Nadu on 12 January 2018. It proposes to amend the Tamil Nadu Town and Country Planning Act, 1971 by adding provisions for shelter charges and a State Shelter Fund.
The Bill also expands the meaning of relevant laws for planning and building permissions. It covers the Chennai Metropolitan Development Authority, city municipal corporations, municipalities, town panchayats, panchayat unions and village panchayats under their respective planning or local government laws.
Shelter charges
The proposed shelter charge applies when a local authority or planning authority grants planning permission or a building permit for specified activity involving land or buildings.
Key provisions are:
- A charge may be levied for starting or changing the use of land or a building, or for developing land or a building.
- The person undertaking the development, starting a use or changing a use is liable to pay.
- Rates must be determined through a prescribed procedure and kept within prescribed minimum and maximum limits.
- Different rates may be prescribed for different parts of a planning area and for different uses.
- The manner of collection is to be prescribed separately. The Bill itself does not state a rate.
Property buyers, owners and developers may therefore be affected when seeking planning permission or a building permit for development or a change of use.
State Shelter Fund
The proposed State Shelter Fund is intended to finance affordable housing for poor people in urban areas. Shelter charges collected by local or planning authorities are to be credited to the fund, along with proceeds from other sources approved by the Government.
The Government may prescribe how the fund is operated, used and maintained. The stated purpose includes supporting Government housing projects and housing schemes for the urban poor.
Earlier collections
L.A. Bill No. 12 of 2018 validates shelter charges levied or collected between 21 July 2017 and the date when the resulting Act is published in the Tamil Nadu Government Gazette. Such collections cannot be challenged solely on the ground that they lacked legal authority under the earlier form of the Tamil Nadu Town and Country Planning Act, 1971.
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
Will every property purchase attract a shelter charge?
The Bill does not impose a charge merely because a property is purchased. It applies to a person undertaking development, starting or changing a use, where the local or planning authority grants permission or a building permit.
How much is the shelter charge?
The Bill does not provide a specific rate. It says rates and their minimum and maximum limits will be prescribed, and rates may differ by area and type of use.
What will the shelter charge money be used for?
The money will be credited to the State Shelter Fund, which is intended to provide affordable housing for poor people in urban areas.
Can an earlier shelter charge collected after 21 July 2017 be challenged as unauthorised?
The Bill validates shelter charges levied or collected from 21 July 2017 until publication of the resulting Act in the Tamil Nadu Government Gazette. It prevents proceedings based only on the claim that those charges were not lawfully levied or collected.
