G.O. (Ms.) No. 37, Amendments to Tamil Nadu Transfer of Development Rights Rules, 2019
The Housing and Urban Development [UD4(3)] Department issued G.O. (Ms.) No. 37 dated 24 February 2020 to amend the Tamil Nadu Transfer of Development Rights Rules, 2019. The amendments set a fee, revise the calculation and valuation of development rights, change certificate utilization and transfer procedures, and state that the 2019 Rules took effect from 24 December 2019.
What the amendments cover
The amendments to the Tamil Nadu Transfer of Development Rights Rules, 2019 govern how Development Right Certificates are used and transferred. They also revise the calculation of floor space credit, the guideline value applied during utilization, and certain procedural requirements.
The notification was directed to be published in the Tamil Nadu Government Gazette Extraordinary dated 24 February 2020. The Housing and Urban Development [UD4(3)] Department states that the Tamil Nadu Transfer of Development Rights Rules, 2019 took effect from 24 December 2019.
Who may be affected
The amended Tamil Nadu Transfer of Development Rights Rules, 2019 may affect:
- Holders of Development Right Certificates.
- People applying to utilize transfer of development rights.
- Transferors and transferees of Development Right Certificates.
- Planning authorities receiving applications or certificates.
- Owners or professionals assessing floor space credit based on surrendered and receiving land values.
Key changes
The amendments make the following changes:
- The fee wording in rule 8 is replaced with a fee of Rs.10,000 (Rupees Ten Thousand only).
- An application to utilize transfer of development rights must be submitted with the Development Right Certificate.
- Floor space credit is calculated as the extent of the surrendered site multiplied by 2.25 and by the value factor, V, at the time of utilization.
- The value factor, V, is obtained by dividing the guideline value of the surrendered land by the guideline value of the land where the Development Right Certificate is proposed to be received or utilized.
- For 10 years from the issue of a Development Right Certificate, utilization must use the higher of the guideline value at the time of issue or the actual guideline value at the time of utilization.
- After 10 years, the prevalent guideline value at the time of utilization applies.
- Sub-rule (9) of rule 9 is omitted.
Transfer of a certificate
A Development Right Certificate holder who wants to transfer the certificate must give the original certificate to the planning authority with an application and a registered agreement signed by both the transferor and transferee.
If the certificate is transferred to the planning authority itself for utilization, no stamp duty is required. The amendments also replace the word “transferor” with “transferee” in the relevant clause.
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Common questions
When did the Tamil Nadu Transfer of Development Rights Rules, 2019 take effect?
G.O. (Ms.) No. 37 states that the Tamil Nadu Transfer of Development Rights Rules, 2019 took effect from 24 December 2019.
What must I submit to use a Development Right Certificate?
An application for utilization of transfer of development rights must be submitted along with the Development Right Certificate.
Which guideline value applies when I use a Development Right Certificate?
For 10 years from the certificate's issue, the higher of the guideline value at issue or the actual guideline value at utilization applies. After 10 years, the prevalent guideline value at the time of utilization applies.
Is stamp duty required when a Development Right Certificate is transferred to the planning authority?
No. The amendment states that no stamp duty needs to be paid when the Development Right Certificate is transferred to the planning authority itself for utilization.
