Eyeing a revenue boost, the Delhi government is planning to revise the circle rates for various categories of properties across Delhi. Once the revised rates are implemented, property prices in the national capital are expected to go up. The circle rate is the minimum price fixed by the state government below which property cannot be sold. The revenue department has also issued a public notice seeking suggestions from the resident welfare associations and Delhi residents owning land and properties on the revision of circle rates. “The Government of National Capital Territory of Delhi is in the process of revising the circle rates (minimum property valuation rates) for various categories of properties across Delhi,” the notice issued by the government on Wednesday read. The objective of this amendment was to bring the notified rates in line with the prevailing market conditions and ensure transparency in property transactions, the notice added. The last revision of circle rates of agricultural land and river bed land was in 2008, while rates for residential land and immovable properties were in 2014. “Other interested persons, Resident Welfare Associations (RWAs), industry bodies, property owners and stakeholders can submit their suggestions within 15 days from today on the email ID- suggestionondelhicirclerates@gmail.com,” the notice stated. The development follows Chief Minister Rekha Gupta directing the revenue department last month to form a committee under the chairmanship of the divisional commissioner and prepare a plan. Gupta had highlighted that there were inconsistencies in the current circle rate structure across Delhi that require reassessment, and directed the task force to present a report at the earliest after considering all relevant aspects. A property cannot be registered for a price below the circle rate for an area. Depending on factors such as demand and supply, amenities, and the profile of the neighbourhood, these rates are revised from time to time. In Delhi, the government has divided localities into eight categories based on the floor price — ‘A’ to ‘H’. Upscale localities such as Jorbagh, Vasant Vihar, and Safdarjung Enclave come under category ‘A’, while the least developed places, mostly located in Outer Delhi, fall in the category ‘H’. During the COVID-19 pandemic, the Delhi government relaxed the circle rates by 20 per cent. In 2022, however, these rebates were withdrawn. At present, the 2014 guidelines are being implemented in Delhi. While the base unit rate of cost of construction (residential use) in category ‘A’ is Rs 21,960 per square metre, the corresponding value for category ‘H’ is Rs 3,480.
