G.O.(Ms).No.37, Tamil Nadu Transfer of Development Rights Rules, 2019 Amendments
The Housing and Urban Development [UD4(3)] Department issued G.O.(Ms).No.37 dated 24 February 2020, notifying amendments to the Tamil Nadu Transfer of Development Rights Rules, 2019. The amendments set the application fee, revise the calculation and valuation of development rights, and change requirements for using or transferring a Development Right Certificate.
Scope and status
The Housing and Urban Development [UD4(3)] Department issued G.O.(Ms).No.37 dated 24 February 2020 under the Tamil Nadu Town and Country Planning Act, 1971. It directs publication of the appended notification in the Tamil Nadu Government Gazette Extraordinary dated 24 February 2020 and states that the Tamil Nadu Transfer of Development Rights Rules, 2019 took effect from 24 December 2019.
Who is affected
The amendments to the Tamil Nadu Transfer of Development Rights Rules, 2019 affect people who apply to use transfer of development rights, holders who transfer a Development Right Certificate to another person, transferees receiving a certificate, and planning authorities processing these transactions.
Key amendments
The notification makes the following changes:
- The fee referred to in rule 8 is fixed at 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: extent of the site surrendered x 2.25 x V.
- The factor V is calculated by dividing the guideline value of the surrendered land, described as the export site, by the guideline value of the receiving land, described as the import site.
- For 10 years from the date of issue of the Development Right Certificate, the higher of the guideline value at the time of issue or the actual guideline value at the time of utilization must be used. After 10 years, the guideline value prevailing when the certificate is utilized must be used.
- Sub-rule (9) of rule 9 is omitted.
- A certificate holder transferring a Development Right Certificate to another person must submit the original certificate to the planning authority with an application and a registered agreement signed by both the transferor and transferee.
- No stamp duty is required when the Development Right Certificate is transferred to the planning authority itself for utilization.
- In the specified provision of rule 10, the word “transferor” is replaced with “transferee”.
Practical relevance
A person applying to use development rights should include the Development Right Certificate and account for the prescribed fee and valuation method. A person transferring a certificate should have the original certificate and a registered agreement signed by both parties before approaching the planning authority.
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Common questions
What fee is prescribed for the application?
The amendment substitutes a fee of Rs.10,000 (Rupees Ten Thousand only) in rule 8.
What must I submit when applying to use transfer of development rights?
The 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 guideline value prevailing at the time of utilization applies.
Is stamp duty payable when a Development Right Certificate is transferred to the planning authority?
No stamp duty is required if the Development Right Certificate is transferred to the planning authority itself for utilization.
