The circle rates for the Capital’s posh Category A colonies such as Vasant Vihar, Friends Colony and Asian Games Village are set to shoot up by a whopping 200 per cent with the Delhi Cabinet approving a proposal to this effect on Wednesday ostensibly to remove the huge difference that existed in the market rates and the circle rates, which are meant for valuation of land and properties for the purpose of levying stamp duty.
The minimum rate for registration in Category A colonies is being hiked from Rs. 2.15 lakh per square metre to Rs. 6.45 lakh per square metre.
While there has been a phenomenal jump in the circle rates for these colonies and many believe it will increase the cost of property, Chief Minister Sheila Dikshit said the circle rates were last rationalised in November last year. Despite that hike the circle rates still continue to be far less than the prevailing market rates at which transactions are taking place, she added.
This would be the third hike in circle rates since they were introduced in July 2007.
As for the circle rates for other categories, the Chief Minister said the hike would be much smaller in percentage terms. For Category B colonies, a 50 per cent hike has been approved and with this the circle rate would go up from Rs. 1,36,400 per square metre to Rs. 2,04,600 per square metre.
The Cabinet, however, took a “sympathetic view” of the C, D, E, F, G and H category colonies and allowed only a nearly 25 per cent increase in their circle rates. So the circle rate of Category C colonies would go up from Rs. 1,09,200 per square metre to Rs. 1,33,224 per square metre; for Category D from Rs. 87,200 per sq. metre to Rs. 1,06,384 per sq. metre; for Category E from Rs. 47,840 per sq. metre to Rs. 58,365 per sq. metre; for Category F from Rs. 38,640 per sq. metre to Rs. 47,140 per sq. metre; for Category G from Rs. 31,510 to Rs. 38,442 per sq. metre; and for Category H from Rs.15,870 per sq. metre to Rs.19,361 per sq. metre.
The Chief Minister expressed hope that the hike in circle rates, which was earlier approved by the State Revenue Department, would curb the flow of black money and bring greater revenue to the Delhi Government.