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Plot owners call for 10% cut in proposed circle rates

Plot owners, builders and homebuyers in the city have asked the district administration to reduce the circle rates by at least 10% as the real estate industry is facing a sustained slowdown due to the lockdown caused by the Covid-19 pandemic
By Abhishek Behl, Gurugram
PUBLISHED ON JAN 12, 2021 11:02 PM IST

Plot owners, builders and homebuyers in the city have asked the district administration to reduce the circle rates by at least 10% as the real estate industry is facing a sustained slowdown due to the lockdown caused by the Covid-19 pandemic.

The district administration has already proposed the new circle rates in the last week of December 2020 and are likely to be implemented from April. Objections to the same can be submitted till January 15.

Gurugram Home Developers and Plot Owners Association, in a letter to the district administration on January 9, said that there is a need to reduce the rates by almost 10% to make real estate competitive in the district. The association has also demanded that circle rate for builder floors, which is the only segment witnessing sales, not be being increased by almost 1,000 per square yard.

“The proposal to increase the circle rate from 5,500 to 6,600 per sq yd will badly hit the segment. Small developers and contractors engaged in building such floors will lose business and the government will lose revenue if the rates are increased,” said Ramesh Singla, a senior functionary of the association.

The association has also asked the district administration to review the circle rates for sale of basement, saying that the current rates are exorbitant. “There is no right of land for basement. So, circle rate should be charged only on construction,” said Singla.

Property dealers also said that registration of property at revenue offices should be further streamlined so that the buyers and sellers don’t suffer. “The process of obtaining no-objection certificate (NOC) for carrying out property registration has become very difficult. Earlier, it was easier to get permission, but now, the process has become cumbersome,” said Imran Khan, a property owner.

Basti Ram, the district revenue officer, said that all affected stakeholders, including property developers, can submit their objections and concerns to the district administration by January 15. “We will look into the objections and same will considered positively. The new rates will be applicable from April,” he said.

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