Section 40(5) in Tamil Nadu Combined Development and Building Rules, 2019
(5)Caution Deposit. - (a) Caution Deposit to be made by the applicant not being a Government department or agency before issue of planing Permission shall be 10% of the guideline value of the land or 20% of the Guideline Value of the land area equal to which the additional floor area is availed, whichever is higher. The caution deposit is acceptable in the form of an irrevocable Bank Guarantee issued in the format prescribed, in favour of the Competent Authority from any scheduled bank(b)The Bank Guarantee shall be kept alive till a final decision is taken by the Competent Authority.(c)The Bank Guarantee towards caution deposit is returnable after a period of five years, from complete occupation and commencement of commercial operation subject to confirmation by a certificate from the appropriate authority (ELCOT) certifying that the building is put into continuous use for Information Technology (IT) parks or Bio Informatics units for the said five years.(d)If the building is utilized for any other purpose during this period and the occupancy confirmation certificate from the appropriate authority (ELCOT) is not furnished, the Bank Guarantee shall be invoked and the caution deposit shall be forfeited by transferring the same to the Competent Authority's account.(e)The caution deposit referred to above shall be different from, and over and above the security deposit to be paid in the normal course of issue of Building Permit.(f)The decision of the Competent Authority is final in the invocation or release of Bank Guarantee.
