Delhi defers property circle rates, sets up review panel
The decision to hike circle rates for properties in the city was deferred till June 14 after the Delhi cabinet Monday formed a committee to clear differences on the issue.
New Delhi: The decision to hike circle rates for properties in the city was deferred till June 14 after the Delhi cabinet Monday formed a committee to clear differences on the issue.
The new circle rates - the minimum rate for valuation of land for residential use that differs for various categories of colonies - were put before the cabinet for discussion by Revenue Minister Raj Kumar Chouhan, who said the committee of five members will include him, Urban Development Minister AK Walia and the secretaries of the law, finance and revenue departments.
There are eight categories for colonies in the capital -- A, B, C, D, E, F, G and H.
However, in the new rates two more categories of colonies have been added. While charges in new categories of A and B, which constitute nearly 50 posh colonies of the capital, have been fixed at Rs.1.25 lakh and Rs.1 lakh respectively, the existing categories will start from C onwards, the rates for which have been hiked around 30-40 percent.
The minimum rate for valuation of land for residential use is Rs.43,000 per sq metre for category A at present, while it is Rs.34,100 per sq m for category B. For Category C, it is Rs.27,300 per sq m; Category D - Rs.21,800 per sq m; Category E - Rs.18,400 per sq m; Category F - Rs.16,100 per sq m; Category G - Rs.13,700 per sq m and Category H - Rs.6,900 per sq m.
On the other hand, the Municipal Corporation of Delhi (MCD) has also put eight categories of colonies for house tax.
An official source said the differences cropped up after Chief Secretary Rakesh Mehta pointed out that the 10 categories of colonies will lead to "confusion" among people as the MCD has only eight categories.
Chouhan said the issue will be sorted out in a meeting or two before next Monday when the cabinet meets. "Either new categories A, B and C will be merged with new charges fixed or three categories of colonies will come under A," he added.
The move to hike circle rates for properties is expected to help the government earn additional revenue at a time when it is facing a financial crunch in the wake of large spending on improvement of infrastructure in the capital for the Commonwealth Games Oct 3-14.