I have a doubt on how the plot value is calculated in the out-skirts of Chennai. Recently i visited a site at Manimangalam (nr. Tambaram) for which the plot owners (a Trust) quoted a rate of Rs. 500/sq. ft. When i approached a Bank for loan, they mentioned that they will provide loan on 80% land value.

Now when i checked with the plot owners on registration procedure, etc. they gave me the following story - the guideline value(actual land value) for the plot was Rs. 200/sq. ft, development fund was Rs. 150/sq.st. & he kept adding other misc. service charges. My question is how can a plot owner increase the value of a plot worth Rs. 200 to Rs. 500 and arrange a loan for the same ? How will he arrange the land registration documents ? Can somebody clarify.
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  • Hi Movieguy,

    Anyone can sell the land at a higher price than the guideline value.
    So now the seller is selling you the land at Rs 500 per sq ft. Now to help you get the loan what the trust does is they add additional charges like development charges etc and get the land price up to Rs. 500 sq ft (for the purpose of loan only) so that you can get loan at the mkt value of the plot. This is a tie up they have with the bank.

    While registering the plot they would be registering it at the guideline value only.

    This is what I understood from their procedure. Do let us know if you have any more details on this.