That dream house in Delhi just got costlier
22 Nov 2012 1:14 AM GMT
Property prices in Delhi are likely to go up further with Delhi government on Wednesday hiking circle rates – the minimum valuation of land and immovable property – by up to 200 per cent ‘to check black money in transactions’. The Delhi cabinet on Wednesday decided to rationalise the rates. It was last done in November 2011.
The rates of properties in affluent residential colonies under category A including Greater Kailash, Defence Colony, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas have been hiked by 200 per cent.
As per the rates approved by Delhi government, Rs 6.45 lakh per square metre has been fixed as new circle rate for category A colonies as against existing rate of Rs 2.15 lakh. This means nobody would be allowed to buy land and immovable properties in these colonies for less than Rs 6.45 lakh per square metre. Defending the hike, chief minister Sheila Dikshit said: Despite a decent hike therein, the circle rates still continue to be quite less than the prevailing market rates at which transactions are taking place.’
The circle rates in Delhi were first introduced on July 2007, which were further rationalised in February, 2011 and November, 2011. A senior official from revenue department said, ‘It has been noticed that the transactions are taking place at the rate of an amount much less than the prevalent market rates. In order to curb the flow of black money and loss of revenue to government, it has become imminent to rationalise the minimum circle rates’.
For category B, Rs 2,04,600 per square metre has been fixed as against current rate of Rs 1,36,400 per square metre. The rates in category B neighbourhoods like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been increased by 50 per cent while for rest of the areas, the hike has been fixed at 22 per cent. Delhi Revenue Secretary Dharampal said: ‘The government decided to hike the circle rates to cut the black money component in property transactions. We are expecting to generate an additional revenue of Rs 200 crore from hike in circle rates’.
In 2011-12, the Delhi government had collected Rs 2,000 crore in revenues from registration of properties and Rs 1,300 crore has been collected so far in current fiscal.
The rates of properties in affluent residential colonies under category A including Greater Kailash, Defence Colony, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas have been hiked by 200 per cent.
As per the rates approved by Delhi government, Rs 6.45 lakh per square metre has been fixed as new circle rate for category A colonies as against existing rate of Rs 2.15 lakh. This means nobody would be allowed to buy land and immovable properties in these colonies for less than Rs 6.45 lakh per square metre. Defending the hike, chief minister Sheila Dikshit said: Despite a decent hike therein, the circle rates still continue to be quite less than the prevailing market rates at which transactions are taking place.’
The circle rates in Delhi were first introduced on July 2007, which were further rationalised in February, 2011 and November, 2011. A senior official from revenue department said, ‘It has been noticed that the transactions are taking place at the rate of an amount much less than the prevalent market rates. In order to curb the flow of black money and loss of revenue to government, it has become imminent to rationalise the minimum circle rates’.
For category B, Rs 2,04,600 per square metre has been fixed as against current rate of Rs 1,36,400 per square metre. The rates in category B neighbourhoods like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been increased by 50 per cent while for rest of the areas, the hike has been fixed at 22 per cent. Delhi Revenue Secretary Dharampal said: ‘The government decided to hike the circle rates to cut the black money component in property transactions. We are expecting to generate an additional revenue of Rs 200 crore from hike in circle rates’.
In 2011-12, the Delhi government had collected Rs 2,000 crore in revenues from registration of properties and Rs 1,300 crore has been collected so far in current fiscal.
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