Madras High Court directs Tamil Nadu Govt to follow 2017 MVG until new guidelines are framed

The Madras High Court on Wednesday directed the Tamil Nadu government to follow the market value guidelines (MVG) fixed with effect from June 9, 2017, and upheld the single judge’s order.

The division bench of Madras High Court comprising Justice S M Subramaniam and Justice K Rajasekar pronounced the order and directed the State Government to follow the MVG fixed in 2017 until the Valuation Committee revised the MVG following the due process of law and dismissed the appeal of the State Government.

Arbitrary decisions of the executive authorities shake the foundation of a democracy. The bench noted that such decisions cannot be protected under the garb of ‘policy decision’.

While the Order of the Single Judge dated December 18, 2023, stands confirmed, no refund can be claimed for the Instruments registered during the interregnum period.

The Chennai chapter of the Confederation of Real Estate Developers’ Associations of India (CREDAI) had filed a writ before the Madras High Court against the Circular issued by the Inspector General, Registration Department in February 2023, revising Guideline Values to the rates that were prevalent till June 8, 2017, with effect from April 1, 2023.

The main challenge was that the methodology stipulated in the Tamil Nadu Stamp (Constitution of Valuation Committee for Estimation, Publication and Revision of Market Value Guidelines of Properties) Rules, 2010, was not followed. The writ was allowed by a Single Judge of the High Court by Order dated December 18, 2023, quashing the Circular issued by the Registration Department.

A direction was also issued to the Government to follow the 2017 Guidelines (rates adopted from June 9, 2017 onwards) until new guidelines are framed in accordance with the law.

The State filed an appeal against this Order, and the Court granted an Interim Stay on the Order of the Single Judge and adjourned the matter. 

The matter was taken up for final arguments on February 28, 2024, and was reserved for judgment on the same day after detailed submissions were heard. The Division Bench pronounced the order on March 6, 2024.

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