The Uttar Pradesh government is considering a proposal to reduce circle rates in 12 districts, including Gautam Budh Nagar and Ghaziabad.
The principal secretary of Uttar Pradesh (stamp and registration) has asked district magistrates to submit details of circle rate hikes in the last 5 years.
Demands from home-buyers, industrialists and realtors among others had prompted this rethink.
The government has sought suggestions from all stakeholders on this proposal.
“I had a meeting with the realtors’ body- confederation of real estate developers association of India (CREDAI) in sector 27 office and sought their suggestions,” said NP Singh, district magistrate of Gautam Budh Nagar.
“The government has asked realtors and others to submit factual data on why circle rates should be reduced. We will send all details demanded by government soon,” he said.
The administration hiked circle rates up to 14% for residential properties, effective from August 1, despite objections from buyers and other groups. But it did not hike circle rates for flats.
Realtors and buyers said if Gurgaon can reduce circle rates, so can Noida and Greater Noida.
Gurgaon cut circle rates by 15% across all segments on June 28 “to revive the realty market”. Ghaziabad officials said the hike in nearly 90% of industrial and rural areas was negligible this year.
Realtors and buyers said circle rates in many sectors were unrealistic and disproportionate to the prevailing market rates. This affected the realty sector facing a slowdown, they said.
“Circle rates are unrealistic in Noida and Greater Noida. Property buyers had to pay more stamp duty. Circle rates should be on a par with market rates,” said Amit Gupta, a home-buyer.
Officials said a final decision on rate reduction will be taken once all district administration heads send a detailed report to the UP government .
“UP has asked the year that saw maximum hike in circle rates and average hike in 5 years. In 2012-13 the administration hiked circle rates up to 43 percent in commercial category. The government has asked why the hike was so high in a particular year,” said district magistrate NP Singh.
The UP government wants to take populist decisions just because the UP assembly elections are scheduled in 2017 beginning, officials said.