Stamp dept proposes steep hikes in circle rates, homebuyers cry foul

The Gautam Budh Nagar stamp and registration department has proposed a steep hike in existing circle rates on the basis of which a property buyer pays stamp fee at the time of executing registration of a property

The Gautam Budh Nagar stamp and registration department has proposed a steep hike in existing circle rates on the basis of which a property buyer pays stamp fee at the time of executing registration of a property. If accepted, buyers will have to cough up more money to buy property in Noida, Greater Noida and Yamuna Expressway areas.

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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.

Stakeholders — buyers, industrial unit owners or developers — have been given time till August 16 to file objections, if any, against the proposal. At present, a buyer has to pay around 6% of the property cost, which in turn is determined by the circle rate, in stamp fee to buy and transfer property in their name.

Homebuyers say that a hike in the time of a pandemic, when they face a financial crisis, is unjustified and uncalled for.

In the proposal, the department cited the hike in allotment rates by the authorities in Noida, Greater Noida and Yamuna Expressway areas in some areas. The department wants to match the circle rate with the allotment rate, which is the rate is at which the agencies sell their properties.

The Yamuna Expressway Industrial Development Authority (Yedia) in June increased the land allotment rate by up to 5% citing inflation. The same month, the Greater Noida Authority hiked its rates by up to 4.5% for residential properties and the Noida Authority hiked its allotment rate by up to 20% in some areas.

The department also tied the stamp fee to distance from infrastructure.

The new proposal says that if a plot is located along a 30-metre wide road, a Metro corridor or Noida Expressway then an additional 2.5% to 5% of total property cost will have to be paid as stamp fee.

“Proposing a hike in circle rates amid the Covid-19 pandemic that has affected the society financially and disrupted all businesses, including the real estate sector, is completely unwarranted. We are filing objections,” said ATS promoter Getambar Anand who is also the former chairman of confederation of real estate developers association of India (CREDAI), a developers’ group.

Around 50,000 homebuyers, who were unable to execute their registries five years ago due to the fault of the developers may now have to contend with the new proposal, said Amit Gupta, a resident of Prateek Wisteria Society in Sector 77 and member of the Progressive Community Foundation, a social group of citizens.

“We have already objected to the proposal because it is illegal and against the middle-class people who have suffered a lot in the past due to the errors of the state government and developers. Most of us had already bought the stamp as per the previous circle rates but the registry was delayed due to the fault of developers and the state government. We may have to revise this now. Why are we made to suffer more?,” said Gupta.

Greater Noida and Yamuna Expressway residents said the authorities were yet to provide basic civic facilities in several areas and still want to hike circle rates.

“The authorities want to keep putting burden on property buyers without providing them even basic services first. In Greater Noida and Yamuna Expressway areas, people are yet to get proper roads, clean parks, proper drainage network or the possession of plot or flat,” said Rishabh Nigam, secretary of Yamuna Expressway entrepreneurs association.

“So far this is only a proposal. And we have invited objections from all quarters. If objections are valid, then we will consider it and amend the rates. Nothing is final so far,” said SS Pal assistant inspector general of stamp and registration department, Gautam Budh Nagar.