G.O.(Ms) No.172, Land Alienation for Industrial Estates, 2017 (2017)
The Revenue Department, Land Disposal Wing, LD.5(1) Section issued G.O.(Ms) No.172 dated 9 May 2017 to change how land cost is fixed when government land is alienated to State Government bodies that previously received enter upon permission. The land cost is based on the rate prevailing when enter upon permission was granted, with the applicable notional increase, and the policy also covers specified past cases.
What the order governs
G.O.(Ms) No.172 dated 9 May 2017, issued by the Revenue Department, Land Disposal Wing, LD.5(1) Section, governs the valuation of government land alienated to State Government bodies for purposes such as forming industrial estates. It applies where the body was allowed to enter, develop or use the land before the final alienation order was issued.
The policy arose from cases involving Tamil Nadu Small Industries Development Corporation Limited. Delays in completing alienation meant that land values could rise substantially after the corporation had developed the land and allotted plots to small entrepreneurs.
How land cost is fixed
G.O.(Ms) No.172 directs the Government to:
- Fix land cost using the rate prevailing on the date when enter upon permission was granted.
- Add a notional increase using the modalities of G.O.(Ms) No.907, Revenue Department, dated 13 December 1994.
- Apply the approach to Tamil Nadu Small Industries Development Corporation Limited, Tamil Nadu Housing Board and other State Government bodies covered by the decision.
- Use the policy for future cases and qualifying past cases.
The accepted approach avoids fixing the cost solely by reference to the market value or guideline value prevailing much later, when the final alienation is completed.
Past and completed cases
G.O.(Ms) No.172 applies where enter upon permission has already been granted but the final alienation order has not yet been issued.
Where an alienation order has already been issued, the case may be reviewed if the requisitioning agency submits an appeal. The document does not state that review is automatic, and it does not give an appeal procedure or deadline.
Who may be affected
G.O.(Ms) No.172 primarily affects State Government bodies receiving alienated land, District Collectors and departments processing alienation proposals. It may also indirectly affect entrepreneurs or other allottees where a government body developed the land and transferred plots before the final land value was settled.
The document does not create a general valuation rule for every private land purchase. Its stated focus is government land alienation to State Government bodies that received enter upon permission and developed or transferred the land to further allottees.
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 G.O.(Ms) No.172 apply when enter upon permission was granted before 9 May 2017?
Yes. It applies to past cases where enter upon permission was already granted and the alienation order is still pending.
Can an alienation order that was already issued be reconsidered?
Yes. A completed alienation case may be taken up for review based on an appeal by the requisitioning agency.
Which date is used to calculate the land cost?
The rate prevailing when enter upon permission was granted is used, together with the notional increase under the modalities of G.O.(Ms) No.907 dated 13 December 1994.
Does this policy directly set the price for an ordinary private property purchase?
No general rule for ordinary private purchases is stated. G.O.(Ms) No.172 concerns alienation of government land to State Government bodies, including cases where the land is developed and transferred to further allottees.
