Centre backs Dikshit govt on circle rate row: sources

Property rates in the national capital might soon increase as the Centre is understood to have put its weight behind the Delhi Cabinet over its decision to enhance the current circle rates by 100 per cent which had triggered a row.

Property rates in the national capital might soon increase as the Centre is understood to have put its weight behind the Delhi Cabinet over its decision to enhance the current circle rates by 100 per cent which had triggered a row.

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Chief Minister Sheila Dikshit and Lieutenant Governor Tejendra Khanna have locked horns over the issue with the latter rejecting the Delhi cabinet's decision to increase the circle rates.

Government sources said today that the city government sought a opinion of the Home Ministry on the issue after the Governor rejected the decision. "The Home Ministry gave its reply yesterday.

The reply says that the the Lt Governor should agree when the cabinet in-principle decides on a issue," the sources said, adding that the reply is in favour of the government. This is for the first time that the circle rates have been increased after they were first introduced in the Capital.

The circle rate of properties is the system in which the government fixes the minimum or maximum rate of the land depending on the category of colonies it falls in. Dikshit had said that a decision to increase the existing circle rates was taken in order to mitigate the black money circulation in property transaction in Delhi.

The circle rates were first introduced in Delhi in 2007, dividing the Capital into eight categories, and were notified under the provisions of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007 on July 18, 2007. The neighbouring states of Uttar Pradesh and Haryana have been enhancing circle rates in Noida and Gurgaon very frequently.