New Delhi, Oct 31 (IANS) The Delhi government Monday increased the circle rates — minimum prices for sale or purchase of real estate — by 15 to 250 percent, giving another push to already sky-rocketing prices of real estate in the capital.
‘The circle rates have been increased by up to 250 percent in A category colonies and 15 percent in the last category (H) colonies,’ Chief Minister Sheila Dikshit told reporters after a cabinet meeting here.
While the circle rates for A category colonies, which include posh areas such as Friends Colony, Nehru Place, Green Park and Greater Kailash, will go up from Rs.86,000 per square metre to Rs.215,000, B category, which has witnessed an increase of 100 percent, will increase from Rs.68,200 to Rs.136,400.
The rates of C category property will increase from Rs.54,600 to Rs.109,200.
The existing rates of D category – Rs.43,600 – will be revised to Rs.87,200, the new rates of E category will be Rs.47,840 from the current Rs.36,800.
The new prices of F and G category will be Rs.38,640 and Rs.31,510, respectively, while the price in H category has risen from Rs.13,800 to Rs.15,870.
Dikshit said the step has been taken to ascertain the actual rates of the property and ensure the legal transactions.
The government has also decided to review the circle rates every two years, she said.
She said the rationalisation of the circle rates will automatically enhance the revenue share of civic agency, the Municipal Corporation of Delhi (MCD), by way of transfer duty.
‘The total revenue generated from the circle rates will be around Rs.700-800 crore,’ added Dikshit.
This is the second hike this year with the circle rates being increased by 100 percent in February. The officials had cited the flow of black money in property transaction as the reason for increase in the circle rates.
The circle rates were notified for the first time on July 18, 2007.
