CREDAI Chennai has welcomed the Tamil Nadu government’s decision to allow homebuyers to adjust stamp duty and registration fees already paid, calling it a long-awaited reform that resolves the problem of double taxation and restores confidence in the housing market.
The government order permits adjustment of stamp duty and registration charges paid under the earlier registration framework, particularly for projects that transitioned to the composite registration system. According to industry representatives, the lack of clarity during this transition had led to homebuyers being charged twice, once at the agreement stage and again at registration, increasing the overall cost of home ownership.
Mohamed Ali, President of CREDAI Chennai, said the move addresses the core concern faced by thousands of buyers. “The order resolves the fundamental issue of double taxation by allowing adjustment of stamp duty and registration fees already paid. This is a fair and necessary step,” he said.
He added that as the reform is rolled out, it is essential that the benefits reach all affected homebuyers in a consistent manner. “Uniform implementation will be key to ensuring fairness across transactions,” Ali noted.
The impact of the order is expected to be most visible in projects where construction agreements were registered before the composite registration framework was introduced. Such projects had seen delays in registrations and sales closures due to disputes over additional levies. With the new clarity, these cases are likely to see faster resolution.
Industry estimates suggest that first-time homebuyers impacted by double taxation could save anywhere between Rs. 2 lakh and Rs. 6 lakh, depending on the value of the property and the size of the construction agreement. These savings could significantly ease the financial burden on middle-class buyers, especially at a time when home loan rates and construction costs remain elevated.
Developers believe the decision will also help unlock delayed registrations, allowing projects stuck in procedural bottlenecks to move forward. This, in turn, could improve cash flows for developers and accelerate sales closures in the coming quarters.
Beyond immediate relief, the order is also seen as strengthening the composite registration framework itself. According to CREDAI Chennai, resolving hardships faced during the transition phase encourages both developers and homebuyers to adopt composite registration as the preferred model for future projects.
“The clarity provided by this order reinforces confidence in composite registration as a stable, transparent, and long-term framework,” Ali said. He added that such policy certainty is critical for sustaining momentum in the residential real estate sector.
The Tamil Nadu real estate market has been witnessing steady demand, particularly from end-users. Industry bodies believe that measures reducing transaction-related uncertainty and costs can further support housing sales and improve overall market sentiment.
With the stamp duty adjustment now allowed, stakeholders expect smoother transactions, fewer disputes, and a more predictable regulatory environment. For homebuyers who were caught in the overlap between old and new systems, the decision offers not just financial relief, but also closure to a long-standing issue.
