Tamil Nadu Government Gazette Extraordinary No. 245
The Government of Tamil Nadu issued Tamil Nadu Government Gazette Extraordinary No. 245 on 9 July 2018 to publish several Bills introduced in the Tamil Nadu Legislative Assembly, including two Bills proposing amendments to the Tamil Nadu Town and Country Planning Act, 1971. The proposals create a framework for transferable development rights and land pooling, but the two Bills state that they will come into force only on dates appointed by State Government notifications.
What the Gazette publishes
Tamil Nadu Government Gazette Extraordinary No. 245, issued by the Government of Tamil Nadu on 9 July 2018, publishes eight Bills introduced in the Tamil Nadu Legislative Assembly on that date. For landowners and property professionals, the relevant proposals are the Tamil Nadu Town and Country Planning (Second Amendment) Act, 2018 and the Tamil Nadu Town and Country Planning (Third Amendment) Act, 2018.
The Gazette publishes the Bills and their stated reasons for general information. Each town planning Bill says that it will commence on a date appointed by the State Government through a notification.
Transferable development rights proposal
The Tamil Nadu Town and Country Planning (Second Amendment) Act, 2018 proposes statutory recognition for transferable development rights. Its key provisions are:
- A development right certificate would record floor space index credit, the place where it was generated and the relevant plot rate from the Registration Department guideline value.
- A landowner may surrender land required for a public purpose to a planning authority, free of cost and free from encumbrances, in exchange for development rights.
- Development rights may also be allowed where a person maintains land or accepts restrictions on development as required by the Government.
- The rights may be used on the remaining land, if feasible, or at another location in Tamil Nadu with equivalent land value, subject to prescribed conditions.
- The original recipient may transfer the development rights to another person.
- A planning authority may acquire land by agreement, by granting transferable development rights, or by applying to the Government for acquisition under the central land acquisition law identified in the Bill.
The proposal also provides that reserved, allotted or designated land may be treated as released if it is not acquired within five years from publication of the relevant Gazette notice. The Government may extend that period, but the extension cannot exceed five years.
Land pooling proposal
The Tamil Nadu Town and Country Planning (Third Amendment) Act, 2018 proposes a land pooling area development scheme. Under the definition published in the Gazette:
- Individual or jointly owned lands may be pooled by transferring ownership rights to the appropriate planning authority.
- The planning authority would develop the pooled land.
- Part of the developed land would be returned to the original owner.
- The remaining land could be used for common facilities and amenities or sold.
The proposal also adds land pooling schemes to references concerning development plans and land acquisition.
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Common questions
Does Tamil Nadu Government Gazette Extraordinary No. 245 immediately make transferable development rights available?
No. The Tamil Nadu Town and Country Planning (Second Amendment) Act, 2018 published in the Gazette says it will come into force on a date appointed by the State Government through a notification.
Can a landowner transfer development rights to another person?
The proposed framework allows the original recipient to transfer development rights to another person. Use of those rights would remain subject to prescribed conditions.
What happens if land reserved under a development plan is not acquired?
The proposed provision treats the land as released if it is not acquired within five years from publication of the relevant Gazette notice. The Government may extend the period, but the extension cannot exceed five years.
Would a land pooling scheme return any developed land to the original owner?
Yes. The published definition says part of the developed land would be transferred to the original owner, while the remaining part could be used for common facilities and amenities or for sale.
