The Delhi government has constituted an empowered committee to review the discrepancies in the circle rates in certain parts of the city.
Circle rates are minimum rates below which a property cannot be registered and forms the basis of stamp duty and registration charges.
The Delhi government has increased circle rates four times since 2011. The rates were revised twice in 2011 and a steep hike of about 20% was introduced in November 2012. The last revision was done during President’s Rule in September 2014.
Officials said the government decided to review circle rates as it received several complaints against the current rates.
The revenue department came up with notice on Wednesday, seeking suggestions from public by August 16.
“The empowered committee that consists of senior revenue department officials will look into the grievances as well as the suggestions. It will then submit the recommendations to the government,” a Delhi government official said.
At a private function last month, a section of industrialists and traders had requested chief minister Arvind Kejriwal to review the circle rates, especially in the industrial areas.
The industrialists had counted anomalies in the property rates as one of the single-biggest problem in the industrial areas as the sale purchase of properties has come to standstill. It also causes revenue loss for the government, besides hitting the realty sector.
Sources said the chief minister told the deputy chief minister, who also holds the finance portfolio, to look into the issue.
“The realty sector in the city hit a slump after 2014. Before that the sector was on a boom. The circle rates were revised on a regular basis keeping in view the market rates. While it naturally increased the property value, the revision was primarily done to check the flow of black money,” a revenue department official said.
While the circle rates were revised across all categories — A to H — the residential properties in the categories in the posh colonies felt the pinch the hardest. The colonies in the city are divided into categories from A to H, with A being the posh colonies.