Official guidance, Tamil Nadu land law
G.O. (Ms) No.172, Land Alienation, 2017
The Revenue Department, Land Disposal Wing, LD.5(1) Section issued Government Order (Ms) No.172 dated 9 May 2017 to change how land cost is fixed when government land is alienated to bodies such as the Tamil Nadu Small Industries Development Corporation Limited, Tamil Nadu Housing Board and SIPCOT after enter upon permission. The land cost must be based on the rate prevailing when enter upon permission was granted, with a notional increase under the method in Government Order (Ms) No.907, Revenue Department, dated 13 December 1994, including specified past cases.
What the government order governs
Government Order (Ms) No.172 dated 9 May 2017, issued by the Revenue Department, Land Disposal Wing, LD.5(1) Section, governs valuation of government land alienated to State Government bodies that received permission to enter and develop the land before the final alienation order.
The decision arose from cases in which the Tamil Nadu Small Industries Development Corporation Limited developed land and allotted plots to entrepreneurs after receiving enter upon permission. Delays in issuing the final alienation order caused the land value payable by the corporation to rise substantially. The document records five cases where the value had increased between two and fifteen times.
Valuation method adopted
Government Order (Ms) No.172 dated 9 May 2017 provides that:
- Land cost is to be based on the rate prevailing on the date when enter upon permission was granted.
- A notional increase must be added following the method in Government Order (Ms) No.907, Revenue Department, dated 13 December 1994.
- The approach applies to the Tamil Nadu Small Industries Development Corporation Limited, Tamil Nadu Housing Board, SIPCOT and similar State Government bodies.
- The approach is not limited to future cases.
The document replaces valuation based on the present market value or guideline value, whichever is higher at the time of alienation, for the category of cases covered by the decision.
Treatment of earlier cases
Government Order (Ms) No.172 dated 9 May 2017 applies to past cases where enter upon permission has already been granted and the alienation order has not yet been issued.
Where an alienation order has already been issued, the case may be taken up for review if the requisitioning agency submits an appeal. The document does not state that every completed case will be reviewed automatically.
Who may be affected
Government bodies receiving alienated land for development are directly affected because the decision determines the land cost payable. Entrepreneurs who received plots from the Tamil Nadu Small Industries Development Corporation Limited may be indirectly affected, as the recorded concern was that the corporation could not recover later cost differences from allottees who had already paid based on a tentative value.
The document does not establish a general valuation rule for ordinary private property sales.
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
Does the land cost use the value on the date of the final alienation order?
No. For the covered cases, Government Order (Ms) No.172 dated 9 May 2017 directs that the rate prevailing when enter upon permission was granted must be used, with the applicable notional increase.
Which organisations are covered by the valuation decision?
The document names the Tamil Nadu Small Industries Development Corporation Limited, Tamil Nadu Housing Board and SIPCOT, and also refers to similar State Government bodies.
Can an alienation order that was already issued be reviewed?
Yes. A case where the alienation order has already been issued may be taken up for review based on an appeal by the requisitioning agency.
Does Government Order (Ms) No.172 apply to an ordinary private land purchase?
The document addresses alienation of government land to specified State Government bodies after enter upon permission. It does not set a general valuation method for ordinary private property sales.
