Real estate prices in the capital may go up further with Delhi Cabinet likely to give its nod tomorrow to enhance circle rates by up to 200 for sale and purchase of property to improve the health of state exchequer and mitigate "flow of black money" in such transactions. The government had hiked the circle rates in February this year by over 100 per cent. Top officials in the revenue department said government wants to hike the rates as in most cases,actual rates of properties are not shown on paper due to which the government suffers loss in revenue in stamp duty and registration fees. "The main aim of the proposal is to stop flow of black money in the property transaction and enhance revenue generation," said a senior official of 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. "The cabinet will discuss the proposal tomorrow," said another official. Justifying the move,Revenue Minister A K Walia said circle rates in Delhi are still less than circle rates in satellite towns like Noida and Gurgaon. As per the proposal,circle rates will be increased in the range of 50-200 per cent. The hike may be around 200 per cent in posh colonies like Defence Colony,Golf Links and Gulmohar Park.
