Tamil Nadu

Mega police housing scheme stuck in stamp duty stand-off

Construction work is going at 'Ungal Kanavu Illam' (Your Dream House) project for police personnel at Melakottaiyur near Chennai by Tamil Nadu Police Housing Corporation.   | Photo Credit: G.Krishnaswamy

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Allottees and TNPHC divided over who should pay the tax on property

The much-publicised mega police house scheme at Melakottaiyur on the city outskirts is stuck in a stand-off over payment of stamp duty. While hundreds of police personnel, including many deputy superintendents of police (DSP) from across the State, have taken possession of the house, there is no clarity on when the registration of documents will take place.

The claim of the allottees is that the ‘Own Your House’ scheme was offered on an all-inclusive price and that the cost of stamp duty had to be borne by the State Government. However, officials in the Tamil Nadu Police Housing Corporation (TNPHC) say that the stamp duty would have to be paid by the allottees.

Admitting that the offer price included stamp duty, they said a corrigendum was later issued making it clear that the registration cost would have to be borne by the police personnel.

In 2012, the government passed orders to construct 36,000 houses for police personnel throughout the State.

As many as 6,000 houses were proposed on 100 acres of land identified at Melakottaiyur in Kancheepuram district. In the first phase, 2,673 houses, including 1,317 for police constables/head constables and 1,190 for sub-inspectors/inspectors of police, were constructed on 47 acres of land. A year later, the Government sanctioned ₹284.20 crore as house building advance to 1,682 police personnel.

Facilities not provided

Referring to the allotment order, one of the allottees said the government had clearly stated that the sale price of the property included the cost of the land, value of construction, charges such as stamp duty, management charges, insurance and others.

“However, after taking possession, the TNPHC authorities are now saying that we have to pay the stamp duty…almost two years after taking possession of these houses, police personnel have not registered the property,” he said, adding that facilities like police canteen and school that were promised were not established.

TNPHC sources said the land/house was given at a highly subsidised price. For instance, an independent 1,100 square feet house of a DSP was priced at ₹26 lakh. It was mentioned in the allotment order that in all financial matters, the decision of the Chairman & Managing Director, TNPHC, would be final.

Officials claimed that a letter was sent to all the allottees that they should pay the stamp duty for registration. But the beneficiaries said they did not receive any such communication.

The Melakottaiyur house scheme was inaugurated by former Chief Minister Jayalalithaa on February 25, 2016.

Printable version | Jul 20, 2017 8:27:22 PM | http://www.thehindu.com/news/national/tamil-nadu/mega-police-housing-scheme-stuck-in-stamp-duty-stand-off/article19305944.ece