The Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020
The Governor of Tamil Nadu, through the Housing and Urban Development Department's G.O. Ms. No. 31, Housing and Urban Development [UD4(3)], dated 31st January 2020, made rules for collecting shelter charges on specified building developments in areas covered by the Tamil Nadu Town and Country Planning Act, 1971. The rules create the Tamil Nadu State Shelter Fund and provide for assessment, payment, exemptions, refunds and challenges to shelter charge orders.
Scope and purpose
The Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020 apply to areas covered by the Tamil Nadu Town and Country Planning Act, 1971. Shelter charges are collected from persons undertaking or carrying out building development, with the proceeds intended to support affordable housing for the urban poor.
Developments affected
The Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020 provide that:
- Shelter charges are based on the prevailing guideline value of the land per square metre fixed by the Registration Department.
- For new construction, charges apply where the Floor Space Index area exceeds 3,000 square metres.
- For additions to an existing construction, charges apply where the additional area exceeds 3,000 square metres.
- The rate range is 1.2% to 3% of guideline value per square metre for commercial and information technology buildings.
- The rate range is 1.1% to 3% for residential and industrial buildings.
- The rate range is 1% to 3% for institutional buildings.
- No shelter charge is payable where dwelling units for Economically Weaker Sections or Low Income Groups occupy at least 10% of the Floor Space Index area.
- Where those units occupy less than 10%, a proportionate charge applies to the Floor Space Index area exceeding 3,000 square metres.
After final assessment, payment must be made to the planning authority or local authority, as applicable.
State Shelter Fund
The Tamil Nadu State Shelter Fund has Tier-I and Tier-II components. Tier-I receives shelter charges and may also receive government grants, transfers, approved contributions and other proceeds. Tier-II must be registered with the Securities and Exchange Board of India as a category-I Social Alternative Investment Fund.
The fund may support affordable housing projects, the State Government's share of centrally sponsored urban poor housing schemes, and other affordable housing purposes specifically ordered by the Government.
Refunds and challenges
The Tamil Nadu Town and Country Planning (Levy of Shelter Charges and State Shelter Fund) Rules, 2020 permit refunds where planning permission is refused, an application is withdrawn, or a permitted project is not commenced. A scrutiny fee of Rs. 5,000 is deducted, and no interest is payable.
An appeal may be filed within thirty days. Chennai Metropolitan Planning Area appeals go to the Government, while appeals in other areas go to the Director of Town and Country Planning. Delayed filings may be admitted where sufficient cause is shown.
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Common questions
When are shelter charges payable for a new building project?
Shelter charges are collected for new construction where the Floor Space Index area exceeds 3,000 square metres. They also apply to additions where the additional area exceeds 3,000 square metres.
Can a project avoid shelter charges by providing affordable housing units?
Yes. No shelter charge is payable if dwelling units for Economically Weaker Sections or Low Income Groups occupy at least 10% of the Floor Space Index area. If the share is lower, a proportionate charge applies to the area exceeding 3,000 square metres.
Can shelter charges be refunded if my project does not proceed?
A refund is available if planning permission is refused, the application is withdrawn, or the project is not commenced after permission. A scrutiny fee of Rs. 5,000 is deducted, and no interest is paid.
Where can I appeal a shelter charge assessment?
For the Chennai Metropolitan Planning Area, an appeal may be made to the Government. In other areas, it may be made to the Director of Town and Country Planning within thirty days from receipt of the order, subject to possible acceptance of a delayed appeal for sufficient cause.
