Cuts in circle rates in select areas ease homebuyers’ burden

Kolkata: In a major relief to city homebuyers, the state government has rationalised circle rates in some areas of Kolkata and neighbouring Salt Lake, New Town, where an 80-90 per cent rate revision had resulted in a significant increase in stamp duty and registration fee payout. In August, the Inspector General of Registration (IGR) Authority, under the state Finance department, responsible for fixing the circle rates and also overseeing the registration of sale agreement, deeds, and other documents in West Bengal introduced the system whereby it was mandated that super build up area needs to be mentioned in the sale documents which was found to be not going with the Real Estate Regulatory Authority (RERA) laws. The members of the Bengal chapter of Confederation of Real Estate Developers Association of India (CREDAI) requested the IGR authority and the Finance department to reconsider the decision. The authorities agreed and withdrew the mandated requirement of mentioning the super built-up area in the documents. However, while doing so, they increased the circle rate or IGR rates of various properties in different areas in Bengal, and some of the rates were extremely high, so much so that there was an 80-90 per cent increase from the earlier rates , which was much higher than market rates.

The Credai leadership took up the matter with IGR Authority and Finance Department of government and submitted the issues and in response the authorities cut down the rates to a reasonable level. “We are happy that the authorities have reconsidered their decision and now the rates have been brought to a reasonable level,” said Sushil Mohta, president, CREDAI, West Bengal. In Mahisbathan, Salt Lake where the rate was revised by 87 per cent has come down to 54 per cent, in Bonhooghly on BT Road where the upward revision was 88 per cent has been rationalised to 53 percent , at southern Bypass, where the rate was increased to 83 has been brought down to 52, while in Topsia, the 68 per cent rate revision has come down to 48 per cent. In New Town, where the rate had increased by 76 per cent, it has come down to 47, while in Behala, Sarsuna where the increase was 69 has been brought down to 47 per cent . One of the circles with maximum reduction in absolute terms is Mahisbathan where the rationalised rate is down to Rs 3463/ sq feet from the last reduction, followed by Topsia Rs 2814/ sq feet and Bonhooghly Rs 2475/ sq feet.

Mohta said that Credai is always supporting the right practices including the right valuation for the deeds and does not advocate any kind of black money transaction in real estate. “So long the valuation fixed up by the authorities is at par with the market rate or close to market rate, it is good for us. Now we find, as far as the rates of construction space are concerned, the valuations are more or less as per the market rates,” he added. However, according to Mohta, in certain areas, the land prices are very high as per IGR circle rates compared to the market rates. “ We will take up this with authority with the request to rationalise it,” he maintained.