Steep hike in circle rates likely in Delhi
A 20-30 per cent hike in circle rates across various categories of properties may be witnessed by the capital over the next fortnight. The hike may be steeper for the upscale colonies in categories like A and B.
This effort is been taken to rationalize registration in view of market rates , to tame the black market and to enhance revenue generation of the state which is now facing bad weather due to the economic slowdown. Senior officials are aiming for an early March decision to notify a revised circle rate regime.
A decision on revising the circle rates can be taken only till the time the Election Commission of India does not notify the Model Code of Conduct for the Lok Sabha polls. The revenue department constituted a committee on circle rates which is expected to deliver its report by February 28, the department hopes to prepare the requisite proposal and seek approval of the lieutenant-governor on the matter.
The minimum rates for valuation of land and immovable properties were increased substantially in the last circle rate revision which happened in 2012. The current rates are: Rs 6.45 lakh per sq metre in A category colonies like Vasant Vihar, Jor Bagh, Golf Links, Anand Niketan, Friends Colony and Maharani Bagh. For B category colonies like Greater Kailash and Defence Colony, the rate is Rs 2.05 lakh per square metre. It is realised that these rates are much lower than the actual market rates prevailing in these areas. The circle rates for C category colonies is Rs 1,33,200 per sq metres, Rs 1,06,400 (D category), Rs 58,400 (E category), Rs 47,200 (F category), Rs 38,500 (G category) and Rs 19,400 for H category.
Enhancing revenue generation is critical, for the revenue department. In the recent fiscal, the revenue department had a target of Rs 3800 crore, but so far it has managed to collect a little over Rs 3000 crore and is unlikely to meet the target. The reasons for the slump in collections are due to fewer property registrations and market slowdown. The government had also pinned its hopes on enforcing an e-court fee order which has been stayed by the high court and that has impacted revenue collections.
At the first review after President’s Rule was imposed, the lieutenant-governor, Najeeb Jung, had asked the executive wing to focus on revenue collection with special focus on departments of revenue, excise and value added tax.
Source: The Times of India
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