GBN administration bats for postponing circle rate hike in Noida
The Gautam Budh Nagar administration on Wednesday said it will ask the Noida authority if it wants to reduce land allotment rates to postpone a proposed hike in circle rates.
A hike in circle rates means a buyer will have to pay more as fee to the government for property registration or transfer. The administration has proposed a circle rate hike up to 14% for residential property, effective August 1.
Fifteen people, including homebuyers, industrialists and realtors, have written to the administration objecting to the proposed hike. They said the prevailing circle rates are not as per the market reality.
The administration committee headed by district magistrate NP Singh on Tuesday evening met seven of the 15 persons who have filed the objection.
“Many people do not want a hike in the circle rates. But they are unable to give us substantial reasosn fro this. Therefore, I have written to the Noida authority seeking its opinion on the issue. If the authority can postpone a hike in the land allotment rate, we can make a fresh proposal,” said the district magistrate.
Singh said buyers have misunderstood the proposed hike.
“There will be no hike in circle rates for the flat category in both Noida and Greater Noida. The proposal seeks to hike circle rates, up to 14%, only for plot houses, not flats. Seventy five per cent of the properties registered are flats. So those buying flats need not worry,” said Singh.
Greater Noida did not hike allotment rate so there is no hike in circle rates. And in Noida, the hike is only applicable for plot houses in all sectors.
Homebuyers, meanwhile, said that a 14% hike in circle rate and another 2% hike in stamp duty (from 5 to 7%) will be a double whammy for them.
“Our demand is different. If a builder promises to deliver a project in 2012 or 2010, most likely he will deliver it in 2016 or 2017. A buyer should be allowed to pay registration fee on the basis of the circle rates that prevailed in 2010 or 2012 instead of 2016-17,” said Kapil Kumar, a homebuyer.