Govt committee recommends breaking circle rate categories down into sub-classifications

New Delhi: Last increased in 2014, circle rates of properties in Delhi are now likely to be revised again, for which the Revenue Department of the Delhi government has prepared a report recommending that the eight categories under which rates are notified should be further broken down into sub-categories to reflect prevailing market rates, officials in the government have said.

A committee of the Revenue Department, after evaluation of circle rates of different kinds of landed properties, has prepared the report which will be examined at the minister's level before being sent for approval of the government, said a senior officer of the department.

"The circle rates are currently fixed as per eight categories as per municipal classifications. It could be further be broken down into 3-4 sub categories within each category for better appreciation of property rates," the officer said.

Currently, depending on the area, circle rates are divided into eight categories from 'A' to 'H' following the classification of the concerned municipal corporation.

The circle rate in 'A' category areas like posh Vasant Vihar is Rs 7.74 lakh per square metre while in the least developed 'H' areas like Nand Nagri is Rs 23,280 per square metre.

Officials said that market rates of properties even within a given category have been found to be varying widely depending on the level of development and commercial value.

"So even within a lower circle rate category, a particular area may have a high market value of properties there which may be more than a less developed part of a higher circle rate category," the officer said.

The circle rate of land or any property is its threshold rate below which its sale can not be registered.

In view of the impact of the Covid pandemic and the subsequent lockdown, on the economy of the city, the Delhi government had in February this year slashed circle rates for residential, commercial, industrial property by 20 per cent, which have now been extended till the end of the year.

This revision in circle rate is expected to boost the revenue of the government - which has witnessed a decline in stamp duty fee of property registrations due to the COVID-19 pandemic and lockdown, said another officer.

Against a target of over Rs 5,000 crore revenue

from stamp duty fee in 2020-21 , the department collected Rs 3,297 crore, mainly due to a slowed-down economy during the pandemic and lockdown, he said.

The department has targeted a projected collection of Rs 4,997 crore through stamp duty fee, this year, he added.