Introduction
Tamil Nadu’s property market faces numerous challenges, especially regarding the regularization of unapproved plots. The Government Order G.O.(M.S)78, issued on 20.10.2016 by the Housing Department to address the regularization of unapproved plots and subdivisions, has proven to be inconsistent, leaving property owners confused and vulnerable to delays. Understanding the nuances of these government orders and the types of plots they affect is crucial for both property buyers and landowners in Tamil Nadu.
Inconsistencies in Government Orders Regarding Plot Regularization
The G.O.(M.S)78 issued to regularize unapproved plots and subdivisions contains various inconsistencies that complicate its implementation. Without addressing these issues, the full potential of the regularization process cannot be realized. Many property owners continue to face difficulties in regularizing their plots, especially those developed before certain land planning bodies, like the Directorate of Town and Country Planning (DTCP), were established.
Challenges with Pre-DTCP Plots
Many residential plots that existed before the formation of the DTCP in 1971, particularly in areas like Alamelumangapuram and Ganapathy Syndicate, now face legal ambiguity. These plots, developed in the 1960s, have transformed into well-established residential areas, but there is no clear guidance on how they can be regularized under the current government order. This leaves owners of pre-DTCP plots uncertain about the future of their properties.
Issues with Natham Land
Natham lands, commonly found in Tamil Nadu’s rural villages, often do not have proper building approvals. Many homes built on Natham land are constructed without formal approval, yet transactions such as sales, gifts, and partitions continue to occur. Some villages have been granted provisional or permanent Pattas for these lands, but in many cases, surveys have not yet started. Unfortunately, G.O.(M.S)78 does not offer any policies or solutions for regularizing Natham lands, leaving these property owners in a precarious position.
Government-Assigned Plots (Oppadai Manais)
Throughout Tamil Nadu, the government has assigned plots to marginalized and low-income families under various schemes. These government-assigned plots, or “Oppadai Manais,” often lack formal DTCP approval. Many recipients are unaware of the DTCP process altogether. The current government order does not address the status of these plots, leaving residents uncertain about how to proceed with formalizing their land ownership.
Government-Sponsored Housing Schemes
Programs like the Indira Awas Yojana and Tamil Nadu Green Housing Scheme have provided government assistance to build houses on small plots of land. These plots, often as small as 2 to 3.5 cents, do not require DTCP approval. However, the government order G.O.(M.S)78 does not clarify how these housing projects should be handled, further complicating the approval process.
Need for Clarity on Regularization
Despite the absence of DTCP approval, many of these plots have fulfilled housing needs for decades. There is a misconception in the real estate market that only DTCP-approved plots qualify for bank loans. However, financial institutions like IDBI, LIC, rural housing finance corporations, and cooperative banks do offer loans on unapproved plots. The government needs to clarify whether these institutions will continue providing loans on non-DTCP plots or if stricter regulations will be enforced.
Real Estate Misconceptions
Misunderstandings surrounding the need for DTCP approval have caused confusion in the real estate sector. While banks and financial institutions have been issuing loans for unapproved plots, the lack of clear policies from the government has led to ongoing uncertainty. Addressing these misconceptions is crucial for maintaining transparency in property transactions.
Lack of Guidance for Certain Types of Plots
Although DTCP has provided some clarification that houses built under government schemes like the Indira Awas Yojana and Tamil Nadu Green Housing Scheme do not require further regularization, no clear guidelines have been issued for Natham lands or Oppadai plots. This lack of guidance leaves property owners unsure of their next steps in ensuring the legality of their plots.
Approval for Land Transactions
When property owners attempt to sell or settle properties built under government housing schemes, they may encounter resistance from the Sub-Registrar’s office if DTCP approval is lacking. However, owners can present letters from the DTCP clarifying that such properties do not require further approval to facilitate transactions. This loophole offers some relief, but a more formalized solution is still needed.
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