New Delhi, Oct 12: 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