Circle rates: Delhi govt, Lt Governor at loggerheads | delhi | Hindustan Times
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Circle rates: Delhi govt, Lt Governor at loggerheads

The tiff between the Delhi government and the lieutenant governor over the fixing of circle rates for sale of property in the national capital territory took another turn on Wednesday when the latter sent the file on circle rates back to the government with what sources described as "some tough comments". HT reports.

delhi Updated: Nov 10, 2010 22:31 IST
HT Correspondent

The tiff between the Delhi government and the lieutenant governor over the fixing of circle rates for sale of property in the national capital territory took another turn on Wednesday when the latter sent the file on circle rates back to the government with what sources described as "some tough comments".

Earlier last week, the L-G had returned the file on circle rate directing changes in the rates that the government was proposing.

The government had sent the file back unchanged within 24 hours, claiming that once the government re-sends a file after consideration, the L-G was constitutionally bound to approve it.

Sources at Raj Niwas said that the L-G has cited a clause in the Indian Stamp Act and the subsequent Indian Stamp (Delhi Amendment) Act that suggests that the right to determine the stamp duty rests with the L-G.

The L-G's officer on special duty Ranjan Mukherjee refused to comment. "The L-G has sent the file to the government but I am not aware of its contents," he told Hindustan Times.

With chief minister Shiela Dikshit returning from Tokyo on Thursday, the matter is expected to hot up within the government.

Circle rate is the minimum rate for valuation of land for residential use that differs for various categories of colonies.

The Delhi government had in June revised the circle rates for sale and purchase of property in the Capital, substantially increasing the duty for all colonies across the city, triggering speculation of a rise in property prices.

The Delhi cabinet had fixed R9,000 per square metre as the lowest rate while the upper limit was set at R1,25,000 per sq metre.

As per the revised rates, R1.25 lakh per sq metre has been fixed for posh colonies like Defence Colony, Greater Kailash, Gulmohar Park, Panchsheel Enclave, Anand Lok, Green Park, Hauz Khas and Nehru Place.

Currently, the circle rate is R43,000 per sq metre for posh colonies falling in category A.

The government has also fixed rates for colonies falling under mixed land use categories where commercial establishments have come up.

The cabinet decided on separate rates for commercial establishments, restaurants and industrial units in such colonies.