New Delhi:
Real estate prices in the Capital are likely to go up further with Delhi Cabinet giving its nod on Monday to enhance circle rates by up to 250 per cent for sale and purchase of property. With this move, the Delhi government expects to both, improve the health of the state exchequer and stem the "flow of black money" in such transactions.
The state government had hiked circle rates in February this year by over 100 per cent. Top officials in the revenue department said the government wants to hike rates as in most cases as the actual rate of property is not shown on paper and the government suffers a loss in revenue on stamp duty and registration fees.
"The main aim of the proposal is to stop the flow of black money in property transaction and enhance revenue generation," said a senior official of the revenue department, which prepared the draft proposal. The circle rate of properties is the system in which the government fixes the minimum or maximum rate of the land depending on the category of colonies it falls in and no transaction is allowed below the minimum rate fixed by the government in any area of the city.
Justifying the move, Revenue Minister A K Walia said circle rates in Delhi were still less than circle rates in satellite towns like Noida and Gurgaon. It is now proposed to increase circle rates in the range of 50-250 per cent. The hike may be around 250 per cent in posh colonies like Defence Colony, Golf Links and Gulmohar Park.
In the last revision, Rs 86,000 per sq metre had been fixed for category A colonies like Defence Colony, Greater Kailash, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Hauz Khas and Nehru Place. The circle rate in these colonies prior to the revision was Rs 43,000 per sq m. Rs 68,200 per sq m had been fixed for colonies like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave. Similarly for category C colonies, the rate had been fixed at Rs 54,600 per sq m while for category D colonies it was fixed at Rs 43,600 sq m.
For category E and F, the rate was fixed at Rs 36,800 and Rs 32,200 respectively while for categories G and H it was hiked to Rs 27,400 and Rs 13,800 respectively. The circle rates were first introduced in Delhi in 2007, dividing the Capital into eight categories, and were notified under the provisions of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007 on July 18, 2007.
There had been a bitter squabble between Chief Minister Sheila Dikshit and Lt Governor Tejindra Khanna who returned the file on hiking the rates pointing anomalies in the rates. Khanna in November last year had refused to approve the rates finalised by the Cabinet and had suggested that circle rates should be increased further in top colonies whereas rates should be slashed where basic infrastructure is not up to the mark.