Pay for registries on prevailing rates, Ghaziabad decides no hike in circle rates
The first sale of property is based on sector rates, which is decided by the local development authorities. The subsequent sale of property is decided on the basis of circle rates, which are decided every year by the district magistrate.Updated: Aug 08, 2019 12:34 IST
For the third consecutive year, the Ghaziabad district administration has decided to not increase the current circle rates. From August 8, the residents will pay stamp duty on the prevailing rates which have been carried forward from 2018. Besides this, officials said they have also scrapped rates fixed for green belts and lowered parking charges in some areas of Ghaziabad from 4% to 3%.
The first sale of property is based on sector rates, which is decided by the local development authorities. The subsequent sale of property is decided on the basis of circle rates, which are decided every year by the district magistrate. Those taking up registries are required to pay stamp duty on the valuation of the property calculated on the basis of circle rates.
Officials of the stamps and registration department said there will be no hike in current circle rates and even an objection received from farmers of Alipur in Loni was rejected. In a joint petition, the farmers had demanded that their land rates be increased from Rs 90 lakh per hectare to Rs 1.5 crore per hectare.
“The proposal was rejected as we could not find a basis for the demanded hike. The circle rates announced in 2018 will continue to prevail this year too. As a result, hike will have no effect on our revenue from stamp duty. This year, we have a revenue target of Rs 1,675 crore and the revenue collected so far, from April 1 to July 31, is about Rs 492 crore. Besides deciding on the circle rates, other issues were also taken up and resolved,” assistant commissioner (stamps) Krishna Kumar Mishra said.
Officials said that they came across an issue where rates of sale of green belts were fixed in some areas, including Indirapuram, Vaishali and Kaushambi, among others. These areas fall in the jurisdiction of sub-registrar IV and the rates had prevailed for 5-6 years.
“The rates mentioned were Rs 10,000 per square metre. We could not understand why such rates were fixed because green belts cannot be sold. Luckily, no one came for registering the said green belts otherwise we would have been forced to comply, which is not allowed as per norms. We have scrapped these rates as a precaution so the green belts can’t be registered,” Mishra said.
Apart from the issue of green belts, the administration also leveled the additional parking charges for all of Ghaziabad.
“It was found that parking charges in areas including Sadiq Nagar, Sihani—part of Raj Nagar Extension—were 4% instead of the prevailing rate of 3% in other parts of Ghaziabad. This year, we lowered parking charges in these areas to 3%. The parking rates are also added to the valuation of property and stamp duty is charged on the overall value. Lowering parking charges will bring down the overall property valuation,” Mishra added.
According to official statistics, the department registered 56,151 sale deeds during 2016-17 and raked in nearly ₹1014.45 crore as revenue against a target of ₹1617.7 crore. In 2017-18, the department registered 65,508 sale deeds and received a revenue of Rs 1224.33 crore against the target of Rs 1617.7 crore. In 2018-19, the department was assigned a target of Rs 1,626 crore against which it collected about ₹1,442.95 crore by registering about 73,099 sale deeds. The revenue target for 2019-20 is Rs 1,675 crore.
Noida’s circle rates come into effect from Thursday
The Gautam Budh Nagar administration has waived off the 6% surcharge levied on additional facilities such as swimming pool, community centre/club and gym in group housing projects in the district.
The circle rates for the next financial year were notified on Wednesday by the district magistrate of Gautam Budh Nagar.
The administration also decreased circle rates of Noida’s commercial properties by 21.5%. Besides this, a 25% reduction in surcharge on malls and shops with centralised AC has also come into effect. District Magistrate BN Singh said that the revised circle rates will be effective from Thursday.
KK Jain, general secretary, federation of Noida residents’ welfare association , said that the decrease in circle rates is a welcome move. “We have found that the circle rate of residential areas in some sectors is higher than the market price. We feel the administration should have also brought down the circle rates of residential plots in sectors,” he said.
Circle rates are the minimum rates that form the basis for calculating the stamp duty and registration charges. A property cannot be registered at an amount below this rate. The circle rates for Dadri, Jewar and Greater Noida, however, have been kept unchanged as the administration feels the development of Jewar Airport, Metro’s Aqua Line, Dedicated Freight Corridor and the Eastern Peripheral Expressway will draw investment in the region, Singh said.
This financial year (2019-20), the department has collected ₹641 crore till June 30, against a target of ₹2,597 crore.