The Chennai CREDAI has moved the Tamil Nadu High Court to oppose the hike in fees for the registration of the Power of Attorney and real estate construction agreements. The CREDAI contended that it would pose problems for the real estate sector. The Tamil Nadu government, by an order in July this year, increased the registration of the power of attorney from Rs 10,000 to 1% of the value of the property. Further, it hiked the fee for registering the construction agreements from 1% to 3%. The CREDAI challenged them in the High Court.
The counsel representing CREDAI argued before the court that the hike in these fees would have an adverse impact on the real estate sector, whose share of GDP is set at 10%. The counsel contended that the decision of the government was unilateral and accused it of not taking anyone from the real estate sector into confidence on the issue. However, the counsel representing the TN Government told the court that these fees had not been revised for the past 20 years. Therefore, the government revised the fees. The court served notices on commercial taxes and the registration department secretary to clarify the issue to the court before January 5.
