The ever-soaring property prices may witness a wild upswing following the hike in circle rates by up to 250 per cent. The Delhi government has taken this move to deter black money in sale and purchase transactions.
The government had hiked circle rates — the minimum valuation of land and immovable properties — by 100 per cent in February this year.
The circle rate for Category A colonies, like Defence Colony, Greater Kailash, Gulmohar Park, Panchsheel Enclave, Anand Lok, Green Park, Golf Links and Hauz Khas, will be `2.15 lakhs per square metre, a hike of 250 per cent.
The current rate in these colonies is `86,000 per sq. metre.
“Circle rates have been hiked in the range of 15 per cent to 250 per cent so that property transactions reflect the real value,” chief minister Sheila Dikshit said after the Cabinet meeting, adding that this will help the government generate an additional revenue of `800 crores annually. She also said that the government will revise circle rates every two years.
According to revenue department officials, the move was inevitable as in most cases, the 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 new rates will check the flow of black money in property transactions and help the government generate better revenues,” an official said.
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.
For Category B colonies, the circle rate fixed is `1,36,400 per square metre from `68,000 per sq. metre, applicable for colonies like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave.
As per the new rates, buyers in Categories C and D will have to shell out 100 per cent more than the earlier rates. For Category C, the rate is `1,09,200 and for Category D colonies, it is `87,200.
For Categories E and F, the rate has been fixed at `47,840 and `38,640 per sq. m instead of the existing `36,800 and ` 32,200 respectively.
The new rate for Categories G and H has been fixed at `31,510 and `15,870 against the current rate of `27,400 and `13,800 respectively.
Revenue minister A.K. Walia said the notification for the new rates will be issued soon which may come into effect in a week’s time.
He said circle rates in Delhi, however, are still less than those in satellite towns like Noida and Gurgaon.
Circle rates were first introduced in Delhi in 2007, dividing the city into eight categories, and were notified under the provisions of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules 2007 on July 18, 2007.