The Delhi government has prepared a report that seeks to hike circle rates of landed properties in some posh localities of the city by 30 per cent and slashing it where the rates are high.
The report has been submitted to the office of revenue minister for his consideration. The new rates will come into effect after approval of the Delhi government, said a source in the government.
The circle rates of properties in Delhi fall in eight categories of municipal areas — designated A up to H — depending on the development of civic infrastructure and prevailing commercial rate there. The circle rates or the official rates of land and immovable property were last revised in the city in 2014.
The revision in circle rates may lead to 30 per cent hike in some selected high end residential commercial areas of the city. It may also go down in certain areas where the rates are already very steep.
The revision in the circle rates for most of Delhi will, however, be nominal, he said.
The revenue department had formed four working groups in June 2021 for ascertaining circle rate revision in residential, commercial and industrial areas.
The proposal sent to the minister, said officials, and has been prepared on the basis of the recommendations of the working group. The market rates of properties in Delhi have gone up in last few years although the circle rates remain the same since 2014, officials said.
The Delhi government had cut the circle rates by 20 per cent for all categories of properties in April 2021 to revive the real estate sector in the city. The relaxation was extended through notifications a couple of times and is valid till June 2022.
