Cabinet puts off raise in circle rates

The proposal sought to raise the circle rates across the existing eight categories by up to more than double. It also proposed creating two new categories for upscale colonies that were to have the maximum circle rates,officials said.

While Revenue officials said the move will help control market prices as properties are usually sold at prices higher than the circle rates,the government decided to form a new five-member committee to reconsider the proposal after some Cabinet members said it would create complications and could also be legally untenable.

Colonies are classified into eight categories to calculate circle rates under the unit area method,which the Municipal Corporation of Delhi converted to in 2007 to calculate property tax.

“Creating two new categories will make two different set of criteria for valuing colonies and residents could challenge it in court,” the officer said.

The committee that will now reassess the proposal will include the finance minister,revenue minister,finance secretary,revenue secretary and law secretary,the official said. The committee has been asked to submit the report in the next Cabinet meeting.

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