Official guidance, Tamil Nadu land law
Circular, Approval and Release of Layout Plan Accepting Bank Guarantee Before Actually Forming Roads and Other Facilities
The Principal Secretary and Commissioner of Town and Country Planning (in charge) issued this circular to allow layout approval before roads and other required facilities are completed, if the applicant provides a qualifying bank guarantee, transfers public spaces to the local body and undertakes to finish the work within six months. The procedure applies generally to similar layout proposals, with the Commissioner of Town and Country Planning authorised to grant permission and certain longer extensions requiring a decision by the Empowered Committee.
What the circular governs
The Circular on Approval and Release of Layout Plan Accepting Bank Guarantee Before Actually Forming Roads and Other Facilities sets out a general procedure for approving layouts before required development works are completed. It follows a decision taken by the Empowered Committee at its thirty-fifth meeting held on 9 December 2016.
The procedure matters to layout applicants, local bodies, planning authorities and people considering plots in layouts where roads and amenities may not yet have been provided.
Conditions for early layout approval
A layout applicant choosing the bank guarantee method must meet these conditions:
- Obtain a bank guarantee from a nationalized bank.
- Keep the bank guarantee valid for not less than one year.
- Provide the guarantee for the full estimated cost of the required development works.
- Transfer land allocated for roads and other non-saleable public open space reservation to the local body through a gift deed.
- Give an undertaking that the development works will be completed within six months.
Layout approval may be given after the gift deed, bank guarantee and undertaking have been received.
Works covered by the guarantee
For rural layout proposals, the cost estimate must be obtained from the Director of Rural Development Department. The estimate must cover works such as:
- Tar road formation.
- Street lights.
- Drains.
- Water supply.
- Other amenities required to meet the appropriate prescribed standards.
For urban layout proposals, the estimate must be obtained from the relevant head of department, either the Commissioner of Municipal Administration or the Director of Town Panchayats, as applicable.
Permission and extensions
The Commissioner of Town and Country Planning may grant permission for similar layout proposals by following the stated procedure.
If an applicant seeks a further six months to complete the works, the Commissioner of Town and Country Planning may grant that extension based on work progress. Any extension required beyond one year must be decided by the Empowered Committee.
For a plot buyer, approval under this procedure can mean that roads, lighting, drainage, water supply or other amenities are still awaiting completion when the layout is approved.
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
Can a layout be approved before its roads and amenities are completed?
Yes. Approval may be granted after the applicant provides the required bank guarantee, transfers roads and non-saleable public open spaces to the local body through a gift deed, and undertakes to complete the works within six months.
How long must the bank guarantee remain valid?
The bank guarantee must be obtained from a nationalized bank and remain valid for not less than one year.
Who prepares the development cost estimate?
For rural layouts, the estimate must come from the Director of Rural Development Department. For urban layouts, it must come from the Commissioner of Municipal Administration or the Director of Town Panchayats, as applicable.
Who can grant more time to complete the layout works?
The Commissioner of Town and Country Planning may grant a further six months based on work progress. Extensions beyond one year must be decided by the Empowered Committee.
