G.O. Ms. No. 324, Grant of Government Lands on Lease, 2001
The Government of Tamil Nadu, Revenue (LD.II(1)) Department, issued G.O. Ms. No. 324 on 10 September 2001 to add a lease deed condition requiring continued, provisionally increased rent payments while renewal of a government land lease is pending. The requirement affects individuals, private parties, corporations, local bodies and recognised clubs leasing government land for non-agricultural purposes.
What the government order covers
G.O. Ms. No. 324 of the Government of Tamil Nadu, Revenue (LD.II(1)) Department, concerns government land granted on lease for specified periods and used for non-agricultural purposes under PSO 24-A. The order records that such land is normally leased to individuals, private parties, corporations, local bodies and recognised clubs.
The Government of Tamil Nadu introduced a new lease deed condition to prevent rent from remaining unpaid while an application for renewal is under consideration.
Why the condition was introduced
The Revenue (LD.II(1)) Department recorded that government land leases were granted for 20 years, with lease rent subject to revision once in three years. Renewal proposals could take two or three years to receive approval. During that period, a lessee could continue occupying the land without paying lease rent, leaving government dues outstanding without interest.
The Special Government Pleader, High Court, Chennai, advised that requiring continued payment pending revision was legal and valid. The Government considered a provisional increase based on indexed land valuation to be more realistic than simply collecting the previous rent until renewal.
Key provisions
- A government land lease deed must contain a condition dealing with rent after the lease period expires and before renewal is completed.
- The lessee must pay a tentatively calculated lease amount during the pending renewal period.
- The tentative amount is to reflect a provisional percentage increase in lease rent based on the tentative valuation of the land.
- For valuation purposes, the order records an increase of 12 per cent per annum from the base year or reference year valuation.
- The provisional payment remains subject to the actual revised rent finally fixed on renewal.
- The Special Commissioner and Commissioner of Land Administration and District Collectors were directed to incorporate the condition in lease deeds and implement it.
- The Special Commissioner and Commissioner of Land Administration was also asked to send a proposal for suitably amending the relevant condition in Annexure XXX-A to R.S.O. 24-A.
Who should check their lease
Individuals and organisations occupying government land under a lease should check whether their lease deed contains the payment condition. A pending renewal does not, by itself, allow the lessee to occupy the land without making the provisional lease payments required by the deed.
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Common questions
Can I stop paying rent while my government land lease renewal is pending?
No. G.O. Ms. No. 324 requires the lease deed to provide for payment of a tentatively calculated lease amount until renewal and final rent revision.
How is the temporary lease amount calculated during the renewal period?
The amount is based on a provisional percentage increase in lease rent using the tentative valuation of the land. The order records valuation indexing at 12 per cent per annum from the base year or reference year.
Does the provisional payment become the final renewed rent?
Not necessarily. The provisional amount is subject to the actual revised rent fixed when the lease is renewed.
Which government land lessees are covered?
The order concerns government land leased for non-agricultural purposes to individuals, private parties, corporations, local bodies and recognised clubs.
