In view of the boom in the property market in the capital, the Delhi government has started the process of revising the circle rates from A to H categories. According to officials, there is a huge difference between the market price and the current circle rate in many areas, to balance which this step is being taken.
Limited increase in premium areas
Sources say that there will not be much increase in circle rates in posh and premium areas. The rates are already high there and the market prices are also at a stable level. The government is trying to make balanced and limited amendments in these areas, so that there is no additional burden on buyers and investors.
More impact in mid and lower segment
There may be a relatively higher increase in circle rates in middle and lower segment areas. At many places the market price is 20 to 30 percent more than the current circle rate. In such a situation, due to low cost of registration, the government is facing loss in stamp duty and registration fees. After the implementation of the revised rates, efforts will be made to reduce this difference.
Made the basis of MCD data
While preparing the proposal, the previous years’ registration data and valuation reports of Municipal Corporation of Delhi (MCD) have been studied. On the basis of these data, efforts are being made to understand the actual market situation of different areas.
Expectation of transparency and increase in revenue
Officials believe that the implementation of the new circle rate will increase transparency in property transactions. Also, the government is likely to get more revenue from stamp duty and registration. However, before the final decision, a detailed review will be done on the draft and suggestions can also be taken if necessary.