The Delhi government might soon revise circle rates, the minimum amount needed to register properties, after businesses complained that high tariffs at present were hurting the realty sector in industrial areas.
The Aam Aadmi Party administration decided to review circle rates in Delhi on Monday as Gurgaon slashed its tariffs by 15%. The move came after traders complained circle rates were higher than the market prices of properties in many areas.
“New circle rates will be notified after taking public opinion. The process of seeking public opinion could begin next week,” said Brijesh Goyal, convener of the AAP’s trade wing.
Circle rates are important because they form the basis of stamp duties and registration charges for a property, important sources of revenue for the government. There are 29 industrial clusters in the city.
“The chief minister has assured the industrialists that he will review the circle rates,” said a Delhi government spokesperson.
The rates are revised periodically and are decided on the basis of the municipal category it falls under. Delhi’s municipal corporations have divided the city into eight categories, from A to H, in decreasing order for affluence.
High circle rates might lead to a slump in buying and selling of property in the area — as buyers think a plot might not fetch high enough returns — and cause a loss of revenue to the government.
The city administration has increased circle rates four times since 2011, the last during President’s Rule in September 2014. In contrast, circle rates have remained the same in Gurgaon in the last two years.
At a function in Udyog Nagar on Monday, some industrialists and traders requested chief minister Arvind Kejriwal to review circle rates, especially in industrial areas.
“The chief minister assured the gathering that he will look into the issue and get the anomalies rectified,” said Goyal.
He said the industrialists counted anomalies in the property rates as one of the biggest problems in industrial areas as the sale and purchase of properties had come to a standstill.
“The circle rate of an industrial plot in Narela is `92,400 per square metre. By that rate, the total circle rate amount for a 350 square metre industrial plot will add up to `3.23 crore. And the existing market rate of the same plot would be in the range of Rs 1.5 to 1.75 crore,” a real estate agent said.