It was on Wednesday, March 6, 2024, that the Madras High Court ordered the Tamil Nadu government to adhere to the Market Value Guidelines (MVG) as of June 9, 2017.
The order was given by a division bench of the Madras High Court headed by Justice K. Rajasekar and Justice S. M. Subramaniam. The order directs the state government to adhere to the MVG set in 2017 until the Valuation Committee revises it as provided for by law and further it dismissed the state government’s appeal. The bench also added that executive authorities’ arbitrary acts destroy the democratic foundation, so such options cannot be protected under “policy decisions.” As long as the Single Judge’s Dec. 18, 2023, order is upheld, there will be no reimbursement for instruments registered during that interim time.
The Madras High Court received a petition from the Chennai branch of the Confederation of Real Estate Developers’ Associations of India (CREDAI) challenging the circular issued in February 2023 by the Inspector General of the Registration Department, which revised the Guideline Values to the rates that were in place until June 8, 2017, with effect from April 1, 2023. The primary obstacle was the failure to adhere to the criteria outlined in the 2010 Tamil Nadu Stamp (Constitution of Valuation Committee for Estimation, Publication, and Revision of Market Value Guidelines for Properties) Rules.
In an order dated December 18, 2023, a single judge of the High Court approved the petition, nullifying the Registration Department’s circular. Additionally, a directive was given to the government to adhere to the 2017 Guidelines (rates established as of June 9, 2017) until new guidelines are formulated in compliance with the legislation. After receiving an appeal from the state challenging this order, the court postponed the case and issued an interim stay of the single judge’s order. On February 28, 2024, the case was brought up for final arguments; the same day, after hearing extensive comments, the case was set aside for decision. On March 6, 2024, the Division Bench issued the directive.