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Thursday, April 19, 2018

Sharp hike in circle rates by month-end

60% rise in A, B categories, farmhouses.

By: Express News Service | New Delhi | Published: April 15, 2014 12:45:48 am

In an attempt to rationalise property rates in the Capital, the Delhi government is set to hike circle rates by the end of this month.
Officials in the Revenue department said circle rates were likely to go up by 20 per cent to 60 per cent after the revision.

“The 60 per cent hike is primarily for A and B category colonies. But we are expecting other areas, where the market rates have shot up irrespective of our categorisation, could be bracketed in A and B category areas,” Revenue secretary Dharam Pal said.

Besides A and B category colonies, another sector likely to see a steep hike in circle rates is agricultural land and farmhouses.

“It’s one category where we expect the circle rates to go up between 60 per cent and 70 per cent, according to the recommendations, which are yet to be given final shape,” Pal said.

He said the new circle rates would come into effect by the end of this month.

According to senior officials in the department, a committee was, at the moment, comparing the actual market prices against existing circle rates. The committee will send its report to the Finance department for its concurrence before sending it to the
Lt-Governor for approval.

“As there is no government in place, the final approval will come from the Lt-Governor. But first, the Finance department has to give its concurrence,” an official said.

Circle rates are the minimum area-wise property prices set by the government to register a property. But, the government often loses money from registration fees and stamp duties that are not paid because a major part of transactions in real estate are often done in cash or black money. This means the actual value of a sold property is much higher than shown officially.

The circle rates in Delhi were last revised in 2012.

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