Panchayat approval vs DTCP vs CMDA approval of land

1 1 1 1 1 1 1 1 1 1 Rating 5.00 (1 Vote)

The most commonly marketed plots in and around Chennai include Panchayat, CMDA and DTCP approved plots. There are numerous questions on the layouts approved by nodal authorities or town planning authorities.

The commonly marketed layouts which do not have approval are often marketed as Panchayat approved lands. This terminology has been unofficially associated with layouts which are unapproved by town planning authority (e.g. DTCP) or nodal authority (e.g. CMDA). If you had not read about how Panchayat approval is illegal unapproved layout, you can read about it.

The Directorate of Town and Country Planning (DTCP) is responsible for carrying out developmental activities on land and buildings in Tamil Nadu with the exception of municipal areas in Chennai. The area within the Chennai Corporation comes under the nodal authority CMDA (formerly MMDA). The approval from DTCP or CMDA carry the benefit of owning a land which can be used for the specific purpose that is designated by the planning authority. The approval process involves time and cost which are often the main reasons due to which many developers prefer to sell unapproved layouts. The state government allows approval of such unapproved plots by floating schemes which offer regularization against a fixed fee. The approval process can also be initiated by contacting the respective planning authorities without the special schemes but is often not an easy process for individuals. The State Government is planning for such a scheme in Tamil Nadu and the details can be found in the article titled “Get approval for unapproved plots in Chennai”.

The application for regularization often includes fees titled as penalization charges which will consider the total plot area. The penalization charges include betterment charges and development charges. Since this approval causes reduction in open spaces within the city, a fee called OSR (Open Space Reservation) charge is levied.

The major benefit of getting approval from DTCP or CMDA is the entitlement to get building approval. This can be an assurance that the building cannot be demolished without proper procedure laid out for approved layouts. The demolition of buildings constructed on approved land is quite uncommon and is often discouraged, without strong justification, by the legal system.  These benefits are unavailable for unapproved layouts. The property value will also increase substantially if approval is sought and this will increase the resale value. The scope of transparency in transaction is increased and resale is also easier. Banks will only be able to fund building construction or renovation when the land is approved.

The disadvantages of owning unapproved land are numerous. The penalty levied increases with the length of period for which the unapproved plot is owned including the period prior to the execution of sale deed. It is often considered illegal to provide water and sewer connections to such buildings constructed on unapproved land. As building plan approval will not be provided for such unapproved plots, possibility of demolition of such buildings cannot be discounted.


Found this article useful? Like, share and rate this article to encourage our authors to keep on writing such articles!



 

Comments   

0 #2 Krishna 2014-03-25 00:37
Hello Vijay,

Government will register any land including agricultural land, residential land, commercial land, etc. The so called "Panchayat approved land" is an unapproved land that cannot be used for residential construction. Hence, sub-registrar office can register an unapproved land although you cannot build a residential house there.

Thanks and Regards,
Krish
Quoting D.Vijayakumar:
As per you, panchat approval is illeagal then how the Registration is taken place by govt. E.C and Patta also issued by govt........pls advice

Thanks
D.Vijay
Quote
0 #1 D.Vijayakumar 2014-03-24 18:01
As per you, panchat approval is illeagal then how the Registration is taken place by govt. E.C and Patta also issued by govt........pls advice

Thanks
D.Vijay
Quote

Add comment


Security code
Refresh

Latest News

Effect of real estate cash crunch on customers
15 Apr 2014 02:11 - Krishna

Owing to the elections, construction has slowed down in most of the areas of India. Many real estate [ ... ]

Property Ownership Document
11 Apr 2014 01:39 - Krishna

In order to prevent duplication of Khata, the state government has decided to begin the Urban Proper [ ... ]

VAT and service tax on property under construction
08 Apr 2014 02:23 - Krishna

Any under-construction property that is purchased within India is liable to pay VAT and Service Tax. [ ... ]

Should you invest in soft-launch and pre-launch pr...
07 Apr 2014 01:59 - Poornimaa

 Most of us aspire to own a house and are constantly on the lookout for ways to make that dream [ ... ]

Buy or Rent a house - Valuation and calculator usi...
04 Apr 2014 23:15 - Vijay Viswanathan

Buying or staying in a rented house is one of the most frequently asked questions by a hom [ ... ]

Featured News

Indian Real Estate Bubble 2014- will it burst?
18 Dec 2013 03:47 - Krishna Krishnan Houses

Since 2008, people have been concerned about the escalating property values. This year, the fear has [ ... ]

Patta, Chitta and Adangal documents for Land- A co...
08 Dec 2013 09:49 - Krishna Krishnan

As soon as a buyer decides to purchase a land, one of the documents that the buyer first checks is t [ ... ]

Bangalore Guidance value 2013: High rise apartment...
03 Sep 2013 12:04 - Vijay Viswanathan

The new guidance values in Bangalore and norms stipulated along with them include a floor based and  [ ... ]

A comparison of rental returns in chennai
31 Jul 2013 06:12 - Vijay Viswanathan

Investing in apartments might be useful when an investor is confident about positive real estate tre [ ... ]

Things to do before buying land
29 Jul 2013 05:42 - Krishna Krishnan

 Planning to buy a plot? Well here are some of the things that you need to look into before buy [ ... ]

Rules NRIs should know before investing in Real Es...
27 Jul 2013 03:28 - Krishna Krishnan

The rupee has fallen by 7% in the last year and by about 39% when compared to its value five years a [ ... ]

Panchayat approval is illegal unapproved layout
26 Jul 2013 07:44 - Vijay Viswanathan Panchayat approved Land

It has been customary to call unapproved plots as Panchayat approved layouts. Brokers and the so cal [ ... ]

Sign in with Facebook