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Suggestion to create sub-categories within circle rate in Delhi, revenue department prepared report for revision

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The revenue department of the Delhi government has prepared a report to revise the circle rates of properties in the capital by dividing them into sub-categories within eight existing categories to suit the prevailing market rates. A senior revenue department official said that a committee of the revenue department has prepared the report after evaluating the circle rate of various types of land properties, it will be examined at the ministerial level before sending it for the approval of the government.

The official said that as per the classification of the municipal corporation, currently the circle rates have been fixed according to eight categories. This can be made 3-4 sub categories within each category for better appreciation of property rates.

Circle rates in Delhi were last increased in 2014. Presently the circle rates are divided into eight categories from A to H as per the classification of the Municipal Corporation on the basis of area. The circle rate in posh ‘A’ category areas like Vasant Vihar is Rs 7.74 lakh per sq metre, while in less developed ‘H’ category areas like Nand Nagri it is Rs 23,280 per sq metre.

Officials said that even within a certain category, the market rates of properties have been found to vary widely depending on the level of development and commercial value. Therefore, even within the lower circle rate category, properties in a particular area may have a higher market value than the less developed portion of the higher circle rate category, the official said.

In view of the impact of the Kovid epidemic and lockdown on Delhi’s economy, the Delhi government in February this year had reduced the circle rates for residential, commercial, industrial properties by 20 percent. The cut in circle rates has been further extended till the end of December.

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Another official said the revision in circle rate is expected to boost the revenue of the government. Due to the COVID-19 pandemic and the lockdown, there was a decline in the stamp duty duty of property registration.

He said against the target of revenue of over Rs 5,000 crore from stamp duty in 2020-21, the department collected Rs 3,297 crore, mainly due to the slowdown in the economy during the pandemic and the lockdown. He said that the department has targeted an estimated collection of Rs 4,997 crore by way of stamp duty duty this year.

Explain that, the circle rate of land or any property is its rate below which its sale cannot be recorded.

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