The Tamil Nadu Registration Department has initiated a comprehensive exercise to correct anomalies in the state’s market value guideline register by introducing a new classification system for streets based on the proportion of commercial electricity connections. The move is expected to reduce the gap between guideline values and prevailing market prices, making property valuations more consistent and transparent.
Under the revised framework, streets where 60% or more properties have commercial electricity connections will be categorized as commercial. Those with 25% to 60% commercial connections will be classified as mixed-use, while streets with less than 25% commercial connections will remain residential. The classification will be prepared using street maps and electricity connection data provided by the Tamil Nadu e-Governance Agency (TNeGA), with property tax records used for verification.
Officials said that a similar proposal was prepared in 2024 but was not implemented. This time, district-level valuation committees have been directed to complete the exercise within a few weeks and submit their recommendations for updating the guideline register.
The initiative follows a meeting of the valuation committee held on July 15, during which the Inspector General of Registration accepted several recommendations made under the Tamil Nadu Stamp Rules, 2010. The committee identified eight categories of valuation anomalies requiring correction.
Among the key issues highlighted were inconsistencies in property values assigned to crossroads, branch roads and adjoining stretches of major roads. Officials pointed out that roads with similar width, usage and development should carry comparable guideline values. They also cited examples where adjoining villages along the same highway have significantly different guideline values despite having similar development characteristics. Such disparities will now be reviewed and corrected.
The department will also reassess villages located near rapidly developing urban centres. Areas such as Navalur and Vengaivasal, situated close to Sholinganallur, are expected to be re-evaluated as their current guideline values do not reflect their present level of development.
In addition, authorities are completing the correction of survey number errors used in property valuation. Missing survey numbers along highways and district roads will be mapped and assigned values based on factors such as proximity to commercial hubs, industrial zones, transport infrastructure and village boundaries. Agricultural land that has been incorrectly classified as residential plots will also be verified using AgriStack records and corrected where necessary.
The Registration Department has further ordered a review of market values in 1,020 villages and panchayats located near urban areas. The assessment will consider registered sale transactions, advertised property prices, field inspections, land acquisition values and bank sale certificates before recommendations are finalized.
While industry stakeholders have welcomed the initiative, officials have cautioned that nearly 40% vacancies in the department could affect timely implementation. Representatives from the Builders Association of India have also suggested that guideline values should be reviewed every six months to ensure they remain aligned with changing market conditions. The exercise is expected to improve transparency in property transactions and create a more realistic valuation framework across Tamil Nadu.
