The TN chapter of CREDAI (Confederation of Real Estate Developers Association of India) had a meeting with CM M K Stalin and requested to decrease the recent hike in registration and stamp duty charges for various services made by the state registration department.
They have requested the CM to decrease the rates for transfer of power of attorney to non-family members, which has been changed to 1% of market value. Earlier, it was a fixed amount of 10,000. “We want the government to consider revising the fee to 30,000 – 50,000, ensuring alignment with current market conditions and fair valuation. In a similar vein, we would like to highlight the increase in the registration fee for Construction Agreements, which has been raised from 1% to 3%. We kindly suggest considering the possibility of maintaining the fee at its previous rate,” said R. Ilankovan ( President of CREDAI, Tamil Nadu)
CREDAI has likewise mentioned taking on the Hyderabad model for agreement of sale and joint development agreement and general power of attorney registration, as the model is successful in protecting the interests of all the stakeholders.
In their meeting with the government, developers brought up the point that even a 1% hike in registration fees and stamp duty can bring about a significant increase of about Rs. 100 per square foot in property prices. “Similarly, it will have serious ramifications on redevelopment projects. It will increase the transaction costs related to such ventures. This will add to the financial burden of developers and also deter landowners from partaking in such agreements,” he said.
Developers recommended a revision of the present fee structure, taking into account the concerns raised by industry partners and striking a balance between revenue generation and maintaining a favorable investment environment.