Government Hikes Delhi Circle Rates by Up to 20 Per Cent :
While this will increase the cost of owning a property in delhi, this will also inch towards better regularization of property dealings in Delhi.
Giving way to a rise in the rates of property, the Delhi government has announced up to 20 per cent increase in circle rates. As a basic parameter that decides the rate of property purchase and sale, circle rates are regarded as the basic rates below which a property cannot be registered, sold or purchased and hence this rate creates the platform for the government to charge stamp duty and registration money specific to a property deal.
It is important to note that circle rates, introduced in 2007, are revised periodically and almost instantly ensure that the property rates are increased to match the latest circle rates. As far as Delhi is concerned, the circle rates were last revised in the month of November, 2012, when the circle rates were hiked by almost 200 per cent.
As there is still a lot of non-regularized transactions taking place in India’s real estate sector, and there is a level of black money component that goes with any real estate dealing. As a result, there are times when actual transactions take place much above the government’s prescribed circle rates for any location.
Keeping this in mind, the government is trying its best to close the gap between the actual market price of the property and its circle rate as this will lead to regularization of property transactions with very little room for any black money involvement.