Delhi Government is planning to hike circle rates — the minimum valuation of land and immovable properties — in the range of 50% to 200% across the city, a move aimed at tackling black market. The move may trigger hefty rise in property rates.
Senior officials in Delhi government’s revenue department said the government wants to hike the circle rates to stop ‘flow of black money’ in property transaction so that the government does not lose revenue from registration fee and stamp duty.
“In most cases, actual rates of properties are not shown on paper and the government loses revenue on stamp duty and registration fees,” an officer said.
The government had hiked the rates in February this year by over 100%. Justifying the move, a senior minister said circle rates in Delhi are still less than circle rates in satellite towns like Noida and Gurgaon.
“The cabinet will examine the proposal soon,” said a revenue department official, adding the hike may be around 200% in posh colonies like Defence Colony and Gulmohar Park . Actual property rates are not shown on paper and the govt loses money.