The Delhi cabinet on Tuesday decided to raise circle rates — the minimum price at which a property can be bought — in Delhi by 100 per cent.
Since the amount of stamp duty paid while buying a property is based on the prevailing circle rate, the hike will make properties costlier.
Areas in Delhi are divided into eight categories (A to H) and the new circle rate varies from R13,800 per sq metre to R86,000 per sq metre, depending on the area's classification.
While the new rates will help improve the government's fiscal health, they will also discourage the use of black money in property transactions in the Capital.
After the cabinet meeting, Chief Minister Sheila Dikshit said the revision would help curb the current under-valuation of properties.
The neighbouring states of Uttar Pradesh and Haryana have been enhancing the circle rates of Noida and Gurgaon very frequently.