Circle rates for property transaction up in Delhi

Property transactions in the national capital are all set to become a costly affair with the Delhi Cabinet today.

Last Updated: Oct 13, 2010, 00:31 AM IST

New Delhi: Property transactions in the
national capital are all set to become a costly affair with
the Delhi Cabinet today deciding to enhance the current circle
rates for sale and purchase of property by 100 per cent with
an aim to improve fiscal health of the state exchequer.

The new rates will be notified soon, Chief Minister
Sheila Dikshit told reporters soon after presiding over the
Cabinet meeting which had approved a proposal to increase the
existing circle rates of the property by 100 per cent.

This is for the first time that the circle rates have
been increased after they were first introduced in the capital
in July 2007. The circle rate of properties is the system in
which the Government fixes the minimum or maximum rate of the
land depending on the categories of colonies it falls in.

The Chief Minister said that such a decision to
increase the existing circle rates was taken in order to
mitigate the black money circulation in property transaction
in Delhi.

The circle rates were first introduced in Delhi in
2007, dividing the 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.

Dikshit said the revision in circle rates will help in
curbing the prevailing undervaluation of properties.

The neighbouring states such as Uttar Pradesh and
Haryana have been enhancing circle rates in respect of NOIDA
and Gurgaon very frequently.

"In view of prevailing actual market rates in Delhi
and in other NCR towns, it was felt appropriate to reasonably
rationalise existing circle rates. The new rates will come
into force after issue of notification very soon," a senior
government official said.

As per the existing circle rates, the minimum rate for
valuation of land for residential use approved by the Cabinet
are - category A (Rs 43,000 per sqm), Category B (Rs 34,100
sqm), Category C (Rs 27,300 per sqm), Category D (Rs 21,800
per sqm), Category E (Rs 18,400 per sqm), Category F (Rs
16,100 per sqm), Category G (Rs 13,700), and Category H (Rs
6,900 per sqm).

PTI