The Delhi government may soon bring a proposal to hike the circle rate back to the drawing board.
In a recent meeting to review the functioning of the revenue department, the lieutenant governor asked the divisional commissioner to make a detailed presentation on the “revision of circle rates” along with the reports of various working groups constituted for this purpose. Sources said the revenue department had earlier proposed to hike the circle rates by up to 35%, but could never implement it.
According to officials, the divisional commissioner, who is also the principal secretary of the revenue department, formed four working groups in June 2021 to deliberate with various stakeholders and submit their reports to enable the authorities to propose a hike plan to the government for residential, commercial and industrial areas. The proposal, which was sent to the minister, said officials, was prepared on the basis of these recommendations.
The Delhi government, meanwhile, offered a rebate of 20% on circle rates while paying the stamp duty on sale and purchase of their properties registered at the sub-registrar’s office to boost the real estate sector and help people hit by the Covid lockdown. The 20% rebate was introduced in February 2021 and extended for six months twice before it ended on June 30, 2022.
Sources said circle rates, or minimum rates for valuation of land and immovable property in the national capital, were last hiked for all eight categories in 2014 and should be revised as per the market rates. The 2004 Dharmarajan Committee formula “is faulty as several affluent colonies are in lower categories and their circle rates are less while some colonies are in A and B categories, which are not that posh”, said an official.
Officials said some colonies, especially those falling in categories A and B where the circle rate was higher than the prevailing market rate, needed a correction. “The working group constituted to examine stakeholders’ representations had received several complaints from such areas,” said an official.
The working group also suggested the creation of sub-categories to bring circle rates at par with the market rates in various areas.