Official guidance, Tamil Nadu land law
G.O. (D) No.267, Construction of Wholesale and Retail Market at Panjappur
The Municipal Administration and Water Supply (MC.5) Department issued G.O. (D) No.267 on 6 May 2025, granting administrative sanction for a wholesale and retail market at Panjappur in Tiruchirappalli Corporation at a cost of Rs.236.00 crore. It also permits Tiruchirappalli City Municipal Corporation to mobilise up to Rs.100.00 crore through municipal bonds, while requiring that market space allotment does not transfer ownership and that the Government can resume the land when required.
What the government has approved
G.O. (D) No.267 of the Municipal Administration and Water Supply (MC.5) Department grants administrative sanction for constructing a wholesale and retail market at Panjappur in Tiruchirappalli Corporation. The approved project cost is Rs.236.00 crore.
The Panjappur development is connected with plans for an integrated bus stand and other infrastructure facilities in Tiruchirappalli. An earlier Government Order had given in-principle approval for those facilities.
Funding for the market
G.O. (D) No.267 records the following funding pattern:
- Rs.120.00 crore from the Infrastructure and Amenities fund.
- Rs.100.00 crore described in the sanction as Corporation funds.
- Rs.8.00 crore as the Urban Local Body share.
- Rs.8.00 crore from the Capital Grant Fund for 2025-26.
The State Infrastructure and Amenities Promotion Committee had sanctioned Rs.120.00 crore from the Infrastructure and Amenities fund and advised that the remaining project cost should be met from other funding sources.
Municipal bond permission
G.O. (D) No.267 permits Tiruchirappalli City Municipal Corporation to mobilise up to Rs.100.00 crore by issuing municipal bonds for partial financing of the market project. The Corporation Council had already permitted this borrowing through its resolution dated 24 July 2024.
The approved bond arrangements include:
- Servicing and repayment of the debt from the Corporation's internal resources.
- Creation of an escrow mechanism, interest payment mechanism, sinking fund mechanism and debt service reserve amount.
- Ring fencing appropriate revenue resources in favour of the bond trustee.
- Authorising the Corporation Commissioner or members of the Bond Issue Committee to sign agreements, deeds and other documents, complete bond allotment and listing requirements, and make necessary appointments.
The document also records that rule 237 of the Tamil Nadu Urban Local Bodies Rules, 2023 contains provisions concerning debentures and sinking funds.
Effect on land and market occupants
G.O. (D) No.267 places three conditions on the use of land and allocation of market space:
- Allotment of space in the proposed market must not transfer ownership.
- A suitable model for leasing the land may be developed.
- The Government must be able to resume the land in the future whenever required.
These conditions are directly relevant to traders or occupants receiving space in the market. An allotment or lease under the project will not give them ownership of the land or market space.
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 allotment of a shop or space in the Panjappur market give me ownership?
No. G.O. (D) No.267 expressly requires that allotment of space in the proposed market must not result in any transfer of ownership.
Can the Government take back the Panjappur market land later?
Yes. The administrative sanction requires that the Government must be able to resume the land in the future whenever required.
How much can Tiruchirappalli City Municipal Corporation raise through municipal bonds?
G.O. (D) No.267 permits the Corporation to mobilise up to Rs.100.00 crore through municipal bonds for partial financing of the market project.
What is the total approved cost of the wholesale and retail market?
The approved project cost is Rs.236.00 crore, including Rs.120.00 crore from the Infrastructure and Amenities fund and Rs.8.00 crore each from the Urban Local Body share and Capital Grant Fund for 2025-26.
