In a strategic move, the state government of Chennai, just a week after introducing a novel three-tier guideline system for apartment complexes, has decided to retract the order. The focus now shifts back to the conventional street and road-based composite values for registration.
The Three-Tier Guideline Value
The initial three-tier guideline value aimed to establish a uniform standard for apartment complexes in different neighborhoods. Basic, premium, and ultra-premium categories were defined based on the amenities offered. However, this formula faced criticism from both developers and homebuyers. The higher registration charges imposed raised the primary concern, overlooking the typical variance in guideline values for apartments even within the same vicinity.
Non-uniform Guideline Values: A Real Challenge
For instance, on Anna Nagar Second Avenue, a flat could have a considerably higher composite guideline value compared to a unit on the 6th Main Road. The adjacent lanes might exhibit even lower values. The three-tier formula from last week overlooked these variations, compressing the diverse range into just three categories.
Industry Reaction and Advocacy for Legislative Intervention
P Kruthivas, the secretary of Credai, emphasized the need for a more considerate approach. He pointed out that the abrupt implementation of the three-tier formula led to registration charges hikes and erratic guideline values. Kruthivas recommended that the government should not rush major announcements through government orders; instead, it should make comprehensive changes through legislative acts.
Builders’ Perspective and Economic Implications
Builders, especially in areas like Anna Nagar and Poonamallee, observed a surge in house prices ranging from Rs 6 lakh to Rs 8 lakh due to the registration hikes. They proposed that the government should incentivize the Chennai housing sector to stimulate growth.
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Addressing Concerns: Restoration of Composite Guideline Values
In response to the realty sector’s concerns, officials have assured a return to the composite guideline values. This approach will consider various factors, including roads, main roads, streets, and lanes in different localities to determine guideline values. Officials state that the Directorate of Registration (DIG) will carefully establish these values, recognizing the intricacies of the process.
Collaborative Dialogue for Future Decisions
In a meeting with P Moorthy, the Minister of Commercial Taxes and Registration, real estate members discussed rolling back registration charges and adjusting three-tier composite values. G Mohan, president of the Chennai Southern Builders Association, urged the government to involve builders’ associations in committees for informed decisions about the construction industry.
Conclusion:
The government’s decision to revert to composite guideline values signifies a responsive approach to the concerns raised by the real estate sector. The ongoing dialogue between the government and industry stakeholders is crucial for fostering Chennai’s balanced and thriving construction environment.
Frequently Asked Questions (FAQ’s)
Ans: The three-tier guideline faced criticism for higher registration charges, leading the government to revert to the conventional composite values.
Ans: Builders noted a surge in house prices by Rs 6 lakh to Rs 8 lakh due to the registration hikes in areas like Anna Nagar and Poonamallee.
Ans: Officials have assured a return to composite guideline values, considering various factors such as roads, main roads, streets, and lanes in different localities.
