Gurugram: Circle rates raised by 15-20%, to come into effect from today
With the significant revision in collector rates, property registration in Gurugram will get costliergurgaon Updated: Apr 08, 2018 23:32 IST
Two months after revising the circle rates, the Gurugram district administration has revised rates again with a hike of about 15%. The new rates will come into effect from Monday.
Earlier, the administration had hiked the rates by 10-15% in February and these were in force till March 31. The district administration had announced that the government would revise the circle rates afresh in April. In total, the circle rates will be revised twice a year to generate revenue, officials said.
The administration on Sunday announced an increase in the circle rates from 15 to 20 per cent from Monday. The property registration is set to get costlier as the new circle rates come into effect.
Collector or circle rate is the minimum price at which a property is registered with the revenue department when being transferred and the stamp duty levied on such properties is a major revenue earner for the government. The stamp duty is 8% in urban areas and 5% in rural areas.
Hariom Atri, district revenue officer (DRO), Gurugram, said, “The very idea behind revising the circle rates is to ensure that the difference between the market rates and circle rates is not significant. The difference between circle rate and market rate should not be more than 20 per cent . The revised circle rates reflect a balanced approach and will encourage more people to invest in property.”
“The last revision happened in February and it was effective till March 31. The district administration decided to revise the circle rates and the new rates will be effective from April 9. The revision is reasonable,” Atri said.
However, in licenced group housing (GH) societies (sectors 1-57), Ambience Island and Laburnum and others, the circle rate remains unchanged.
In February, the city administration revised the circle rates to ₹5,000/sqft in Sector 1-57, ₹10,000/sqft in Ambience Island and ₹7,000/sqft in Laburnum and others.
Atri said that the last revision ranged between ₹500 to ₹1,500 etc area wise.
DLF 1, 2, 3 and 4, Sushant Lok 1, National Media Centre, South City 1 and Garden Estate saw an increase in the circle rate from ₹1,50,000 to ₹1,65,000.
DLF 1 and Sushant Lok 1 saw the maximum increase in circle rates in residential category from ₹65,000/sqyd to ₹77,000/sqyd. DLF 2 and 4 and South City 1 saw an increase of ₹7,000/sqyd, from ₹65,000/sqyd to ₹72,000/sqyd. DLF 3 and NMC saw an increase from ₹56,000/sqyd to ₹66,000/sqyd.
Chief Minister Manohar Lal Khattar had asked the Gurugram administration to revise circle rates twice in a year.
The hike in circle rates drew criticism from real estate experts.
Parveen Jain, vice chairman, National Real Estate Development Council (Nardeco), said, “The market rate in many parts of the city is either at par with the circle rate or below the circle rate. So, it is not right to suggest that there is a significant difference between the market rate and circle rate. Property rate in Gurugram is already low and market is in a slump.”