Delhi Government Moots Increasing Circle Rates again towards Sale & Purchase of Property in Delhi, India

Aiming to tame the wild horse symbolizing the prevalent under-valuation of the land/ property prices in realty deals, the Delhi Government is going to increase the Property Circle Rates yet again within a short span of less than a calender year.

The primary aim of the Delhi Government is to ensure that the property bazaar deals involving sale-purchase of realty (involving land, flats, builder floors, independent houses, duplexes, rooftop penthouses, farm houses, commercial properties like shops, godowns, multiplexes, shopping arcades, business centers, banquet halls, party grounds, et al.) do not go entirely undervalued the way it is done presently wherein only a small portion of the actual transaction amount is done in white money, while major chunk of the deal is in black money in the form of cash. The state exchequer looses the registration tax money, stamp duty , etc. in such deals as this is paid on white money portion only.

As TOI puts it, "The move is likely to improve the health of state exchequer and mitigate 'flow of black money' in such transactions."

The Circle Rates were hiked last during February 2011 vide 'Notification No. F.l( 281)/Regn.Br./HQlDiv.Com./09/45' dated 04/Feb/2011 that was incorporated in Part-IV of the Delhi Gazette Extraordinary under the Revenue Department, Govt. of Delhi. The notification was then issued in the name of 'Lt. Governor of the National Capital Territory of Delhi'.

The previous hike in Circle Rates in February 2011 had fixed the Circle Rates for residential properties as:
Minimum rates for Residential Properties:
Category of Locality Minimum Rate for Valuation
(Rs. per sqm area)
A 86,000
B 68,200
C 54,600
D 43,600
E 36,800
F 32,200
G 27,400
H 13,800

The Delhi Cabinet on Monday gave its nod to further increase these Circle Rates to the tune of 15 to 250 percent for Sale and Purchase of property depending upon the respective property category.
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