The Delhi government's Revenue Department has prepared a report to revise circle rates of properties in the city by breaking it down into sub categories within eight existing categories to reflect the prevailing market rates, officials said.
A committee of the Revenue Department, after evaluation of circle rates of different kinds of landed properties, has prepared the report which will be examined at the minister level before sending it for approval of the government, said a senior officer of the department.
"The circle rates are currently fixed as per eight categories as per municipal classifications. It could be further be broken down into 3-4 sub categories within each category for better appreciation of property rates," the officer said.
The circle rates in Delhi were last increased in 2014. Currently, depending on the area, circle rates are divided in eight categories of 'A' to 'H' following classification of the municipal corporation.
The circle rate in 'A' category areas like posh Vasant Vihar is ₹7.74 lakh per square metre while in the least developed 'H' areas like Nand Nagri is ₹ 23,280 per square metre.
Officials said that market rates of properties even within a given category have been found to be varying widely depending on level of development and commercial value.
"So even within a lower circle rate category, a particular area may have high market value of properties there which may be more than a less developed part of a higher circle rate category," the officer said.
The circle rate of land or any property is its threshold rate below which its sale can not be registered.
In view of the impact of the pandemic and lockdown on economy of the city, the Delhi government in February this year slashed circle rates for residential, commercial, industrial property by 20%. The rate cut has been further extended till December end.
The revision in circle rate is expected to boost revenue of the government that has witnessed a decline in stamp duty fee of property registration due to the COVID-19 pandemic and lockdown, said another officer.
Against a target of over ₹5,000 crore revenue from stamp duty fee in 2020-21 , the department collected ₹ 3,297 crore, mainly due to slowed down economy during the pandemic and lockdown, he said.
The department has targeted a projected collection of ₹ 4,997 crore through stamp duty fee, this year, he added.