New Delhi: Home prices in the city are set to zoom further as Delhi government today hiked the circle rates -- the minimum valuation at which properties have to be registered with the government -- by upto 200 percent mainly to check black money component in property transactions.
The rates in Category A colonies have been hiked by 200 percent, category B by 50 percent while in remaining coloneis the rates will go up by 22 percent.
As per the rates approved by Delhi cabinet, Rs 6.45 lakh per square metre has been fixed as new circle rate for category A colonies like Greater Kailash, Defence Colony, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas.
This means nobody would be allowed to buy land and immovable properties in these colonies for less than Rs 6.45 lakh per square metre. The existing circle rate in category A colonies is Rs 2.15 lakh.
The rates in Category B neighbourhoods like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been increased have been fixed at Rs 2,04,600 per square metre as against the current rate of Rs 1,36,400 per square metre.
Officials said a notification will be issued in two-three days following which the new circle rates would be effective.
The circle rates were last hiked in October last year by upto 250 percent.
Chief Minister Sheila Dikshit government hiked the rates as it felt the current circle rates were far lower than the actual market price of a property.
"We have hiked the circle rates keeping in view the market rates of the properties. One of the main reasons for the hike is to curb the flow of black money in sale and purchase of properties," she said.
Officials said increase in circle rates will definitely push up property prices in the city.
Delhi Revenue Secretary Dharampal said the government decided to hike the circle rates to cut the black money component in property transactions.
He said government expects to generate an additional revenue of Rs 200 crore from hike in circle rates.
In 2011-12, the Delhi government had collected Rs 2,000 crore in revenues from registration of properties and Rs 1,300 crore has been collected so far in current fiscal.
For C category colonies, the circle rate has been hiked to Rs 1,33,224 per square metre from current Rs 1,09,200 while in neighbourhoods under Category D the new rates will be Rs 1,06,384 as against existing rate of Rs 87,200.
The rate for colonies under category E has been hiked from Rs 47,840 to Rs 58,365 per square metre while for F category colonies, the rate will be Rs 47,140 as against the existing rate of Rs 38,640.
In respect of category G colonies, the new rate will be Rs 38,442 per square metre as against existing Rs 31,510 while for H category colonies, it has been hiked to Rs 19,361 from Rs 15,870.
The circle rates were first introduced in Delhi in 2007, dividing the national capital into eight categories, and were notified under the provisions of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007 on July 18, 2007.