Stamp duty exemption to successor companies of Tangedco extended

CHENNAI: The Tamil Nadu Registration Department has extended the benefit of stamp duty and registration fee exemption to gift deeds executed in favour of the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) and the Tamil Nadu Power Generation Corporation Limited (TNPGCL), bringing the registration framework in line with the State government's restructuring of the power sector.

In a circular issued on July 16, Inspector General of Registration (IGR) instructed all registering officers across the State to recognise TNPDCL and TNPGCL as the legal successors to the erstwhile Tamil Nadu Generation and Distribution Corporation (Tangedco) for the purpose of availing exemptions already provided under a Government Order issued in 2012.

The clarification follows the State government's decision to reorganise Tangedco as part of its power sector reforms. As notified in the Tamil Nadu Government Gazette on August 21, 2024, the utility was bifurcated into separate entities, with TNPDCL entrusted with electricity distribution, billing and consumer services, while TNPGCL was assigned power generation activities.

The circular recalled that the 2012 Government Order exempted stamp duty and registration charges on lands gifted for establishing electricity substations. 

Since the functions and assets of Tangedco now stand vested in the successor companies, the exemption would automatically extend to transactions executed in favour of TNPDCL and TNPGCL, it said.
"The exemption already available to Tangedco shall also apply to TNPDCL and TNPGCL," the circular said, directing Sub-Registrars and other registration authorities to process eligible gift deeds accordingly.