Property prices in India's capital Delhi are set to zoom as Delhi government on recently hiked the circle rates by up to 250 %t to check black money in sale and purchase transactions. This is the second such hike in circle rates the minimum valuation of land and immovable properties in the city in the last 9 months. The rates were hiked by over 100% in February, 2011
As per the revised rates approved by Delhi Cabinet, Rs. 2.15 lakh per square metre has been fixed as new circle rate for category A colonies such as Defence Colony, Greater Kailash, Panchsheel Enclave, Anandlok, Gulmohar Park & Green Park. That is any one will be allowed to buy land and immovable properties in these colonies for less than Rs 2.15 lakh a sq.metre. The existing rate in these colonies was Rs. 86,000 per sq. metre and the hike effected by the government is 250%.
15% to 250%
According to Mrs. Sheila Dixit, Chief minister of Delhi,“We have decided to hike the circle rates in the range of 15% to 250% so that the property transactions reflect the real value. The government would be able to generate an additional revenue of Rs. 800 crore annually due to increase in collection from property transaction through stamp duty and registration fees"
The government hiked 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 government wanted to stop flow of black money in the property transaction and enhance revenue generation..
Mrs. Dixit also said, '' Delhi government has also decided to revise the rates at an interval of 2 years".
The circle rate of properties is the system in which the Delhi 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 state government in any area of the city.
Category Rate:
As per the Cabinet decision, Rs. 2.15 lakh per square metre has been fixed as new circle rate for category A colonies such as Defence Colony, Greater Kailash, Panchsheel Enclave, Anandlok, Gulmohar Park, Green Park, Golf Links & Hauz Khas.
Rs. 1,36,400 per sq. m has been fixed for B category colonies such as Andrews Ganj, Munirka Vihar, Kalkaji and Nehru Enclave. The rate for these colonies was fixed at Rs 68,200 per sq. m in Februar, 2011.
For category C colonies, the rate has been hiked by 100%t and the new rate would be Rs. 1,09,200 per sq. m instead of current Rs. 54,000 per sq. mt.
For category D colonies, the rate has been hiked from Rs. 43,600 per sq. m to Rs. 87,200, which is an increase of 100%.
For category E and F, the rate has been fixed at Rs. 47,800 & Rs. 38,640 per sq. m instead of existing Rs. 36,800 & Rs. 32,200 respectively.
The new rate for categories G and H was fixed at Rs. 31,000 & Rs. 15,870 against current rate of Rs. 27,400 & Rs. 13,800 respectively.
Notification..!
The new rates may come into effect within one week. A notification would be issued to effect the hike.
The circle rates were first introduced in Delhi in the year 2007, dividing the capital into 8 categories (A to H), and were notified under the provisions of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007 on July , 2007.
As per the revised rates approved by Delhi Cabinet, Rs. 2.15 lakh per square metre has been fixed as new circle rate for category A colonies such as Defence Colony, Greater Kailash, Panchsheel Enclave, Anandlok, Gulmohar Park & Green Park. That is any one will be allowed to buy land and immovable properties in these colonies for less than Rs 2.15 lakh a sq.metre. The existing rate in these colonies was Rs. 86,000 per sq. metre and the hike effected by the government is 250%.
15% to 250%
According to Mrs. Sheila Dixit, Chief minister of Delhi,“We have decided to hike the circle rates in the range of 15% to 250% so that the property transactions reflect the real value. The government would be able to generate an additional revenue of Rs. 800 crore annually due to increase in collection from property transaction through stamp duty and registration fees"
The government hiked 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 government wanted to stop flow of black money in the property transaction and enhance revenue generation..
Mrs. Dixit also said, '' Delhi government has also decided to revise the rates at an interval of 2 years".
The circle rate of properties is the system in which the Delhi 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 state government in any area of the city.
Category Rate:
As per the Cabinet decision, Rs. 2.15 lakh per square metre has been fixed as new circle rate for category A colonies such as Defence Colony, Greater Kailash, Panchsheel Enclave, Anandlok, Gulmohar Park, Green Park, Golf Links & Hauz Khas.
Rs. 1,36,400 per sq. m has been fixed for B category colonies such as Andrews Ganj, Munirka Vihar, Kalkaji and Nehru Enclave. The rate for these colonies was fixed at Rs 68,200 per sq. m in Februar, 2011.
For category C colonies, the rate has been hiked by 100%t and the new rate would be Rs. 1,09,200 per sq. m instead of current Rs. 54,000 per sq. mt.
For category D colonies, the rate has been hiked from Rs. 43,600 per sq. m to Rs. 87,200, which is an increase of 100%.
For category E and F, the rate has been fixed at Rs. 47,800 & Rs. 38,640 per sq. m instead of existing Rs. 36,800 & Rs. 32,200 respectively.
The new rate for categories G and H was fixed at Rs. 31,000 & Rs. 15,870 against current rate of Rs. 27,400 & Rs. 13,800 respectively.
Notification..!
The new rates may come into effect within one week. A notification would be issued to effect the hike.
The circle rates were first introduced in Delhi in the year 2007, dividing the capital into 8 categories (A to H), and were notified under the provisions of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007 on July , 2007.
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