We welcome the Tamil Nadu Registration Department’s clarification circular on guideline value fixation and property registrations. This is a very practical and much-needed step towards ensuring uniformity and reducing arbitrary interpretation at the field level.
For quite some time, many genuine buyers, landowners, and developers across the industry have been facing challenges due to isolated high-value transactions being informally treated as the benchmark for fixing the guideline value of an entire street or locality. In reality, such transactions are often influenced by specific factors such as main road exposure, commercial potential, corner advantage, infrastructure access, special business requirements, or one-time negotiated values.
However, when such isolated registrations become the reference point for surrounding residential properties, it creates an artificial increase in guideline values, leading to confusion, difficulty in registrations, higher transaction costs, and unnecessary pressure on genuine end-users and developers. Personally, I have also come across several such situations in the industry where practical ground realities were not adequately reflected during valuation discussions.
The Government’s clarification that a single land or apartment sale should not automatically be treated as the benchmark value for an entire locality brings much-needed clarity and balance into the system. More importantly, it gives proper guidance to field-level registration officials and helps reduce arbitrary interpretation during document registration.
This circular will go a long way in improving transparency, consistency, and confidence in the registration process. It is a positive and reassuring step for the entire real estate sector and for the public at large.
On behalf of CREDAI Tamil Nadu, I sincerely appreciate the Registration Department and particularly thank Inspector General of Registration Mr. Dinesh Ponraj Oliver IAS for understanding the practical concerns faced by the industry and issuing this important clarification in a proactive manner
