E-Paper
GB Nagar: Residents, realtors oppose proposed circle rate hike
A day after the Gautam Budh Nagar stamp and registration department proposed a steep hike in existing circle rates--on the basis of which a buyer pays stamp fee at the time of registering a property in his name,--objections started pouring in from stakeholders in large numbers even as experts in the realty sector called the increase ‘ill-timed
A day after the Gautam Budh Nagar stamp and registration department proposed a steep hike in existing circle rates--on the basis of which a buyer pays stamp fee at the time of registering a property in his name,--objections started pouring in from stakeholders in large numbers even as experts in the realty sector called the increase ‘ill-timed.’
If the proposal floated by the stamp and registration department is accepted, buyers will have to cough up more money to buy property in Noida, Greater Noida and Yamuna Expressway.
So far, dozens of social groups, such as Noida Federation of Apartment Owners Associations (NOFAA), an umbrella body of at least 70 housing societies, federation of apartment owners of Noida and Greater Noida, Progressive community foundation, federation of Noida RWAs and Gautam Budh Nagar district development RWAs, have filed objections.
The National Real Estate Development Council (NAREDCO), Confederation of Real Estate Developers Association of India (CREDAI), and many other developers have also filed their objections against the hike in circle rates.
“The proposal to raise circle rates in Noida, Greater Noida and along the Yamuna Expressway by as much as 40% and additionally apply a 5-12.5% surcharge on properties along the Metro route or near the expressway could not have come at a less ideal time. The NCR’s real estate market has only just begun recovering from the impact of two lockdowns. At this point of time, a softer pricing regime would have encouraged more buyers as they are still grappling with the financial hurdles brought along by the Covid-19 outbreak. Currently, it is in the proposal stage and we hope the authorities reconsider this ill-timed move,” said Anuj Puri, chairperson of Anarock Property Consultants.
Rajiva Singh, president of Noida federation of apartment owners associations (NOFAA) , said the government should reject this proposal immediately. “The realty market has witnessed 30-40% reduction in property rates due to the economic crisis in view of Covid-19. The government should instead reduce the circle rates to give a boost to economy,” said Singh after filing the objection.
Developers said that it is high time that circle rates be reduced and made more realistic.
“Delhi, Madhya Pradesh and Maharashtra governments have reduced circle rates in view of Covid-19 pandemic. The UP government should take similar steps o revive the market. Also, the government should reduce stamp fee from 6% to 2% as it will benefit consumers, thereby benefiting the state government,” said R K Arora, chairman of NAREDCO.
UP stamp and registration department’s assistant inspector general
S S Pal, UP’s stamp and registration department’s assistant inspector general, said, “We have not yet figured out how many objections have been filed so far. It will be done on August 16 and an appropriate decision will be taken in this regard.”
In Noida’s A-category sectors 14A, 15A and 44, the circle rate is proposed at ₹1,94,250 per square metre (sqm) against the existing ₹1,03,500 per sqm — an 87% hike. In B-category sectors such as sectors 11, 12, 22, 70, 71, 72, 73, 74, 75, 76, 77 and 78, which are hubs of middle-income group housing complexes, the rate is proposed at ₹72,000 per sqm against the existing ₹52,500 per sqm — a 37% increase.
