Delhi's circle rates surge 35%: Proposal redrawing underway

29 Aug 2023 CW Team

The plan of the Delhi government to revise the circle rates of residential and commercial areas in the capital has returned to the drawing board.

The previous plan, which had been prepared by the revenue department and proposed the creation of sub-categories within the A to H categories of residential areas, along with multiple slabs of circle rates, had been sent back by the finance department. The finance department had raised certain objections and provided suggestions regarding the plan.

The department have made the decision to thoroughly examine the suggestions and modify our proposal accordingly.

Due to the substantial disparity between the current circle rates and the prevailing market rates at which property transactions occur, we intend to suggest an increase of up to 35%. However, we will also take into account the feedback received from various stakeholders. Depending on this feedback, we might consider adjusting the categories of specific neighbourhoods based on factors such as their location, amenities, and the prevailing market rates.

The concept of circle rates refers to the minimum rates utilised for the valuation of land and immovable property within the national capital. The last revision of circle rates for residential areas across all existing categories was carried out in 2014. However, earlier this month, the government elevated the circle rate for agricultural property. This new rate ranges between Rs 2o million and Rs 50 million, depending on the specific area, departing from the fixed amount of Rs 5.3 million per acre that had been established in 2008.

To propose alterations to these rates, the Delhi government had established an empowered committee in 2016, along with four working groups in 2021. Nevertheless, a final decision could not be reached. In a bid to augment government revenue beyond the scope of GST, Manish Sisodia, the former Deputy Chief Minister, emphasised the necessity of aligning circle rates with market rates in March 2022.

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MMRDA's 'One Line, One Manager' plan speeds metro progress
Namma Metro promotes National Common Mobility Card

The plan of the Delhi government to revise the circle rates of residential and commercial areas in the capital has returned to the drawing board. The previous plan, which had been prepared by the revenue department and proposed the creation of sub-categories within the A to H categories of residential areas, along with multiple slabs of circle rates, had been sent back by the finance department. The finance department had raised certain objections and provided suggestions regarding the plan. The department have made the decision to thoroughly examine the suggestions and modify our proposal accordingly. Due to the substantial disparity between the current circle rates and the prevailing market rates at which property transactions occur, we intend to suggest an increase of up to 35%. However, we will also take into account the feedback received from various stakeholders. Depending on this feedback, we might consider adjusting the categories of specific neighbourhoods based on factors such as their location, amenities, and the prevailing market rates. The concept of circle rates refers to the minimum rates utilised for the valuation of land and immovable property within the national capital. The last revision of circle rates for residential areas across all existing categories was carried out in 2014. However, earlier this month, the government elevated the circle rate for agricultural property. This new rate ranges between Rs 2o million and Rs 50 million, depending on the specific area, departing from the fixed amount of Rs 5.3 million per acre that had been established in 2008. To propose alterations to these rates, the Delhi government had established an empowered committee in 2016, along with four working groups in 2021. Nevertheless, a final decision could not be reached. In a bid to augment government revenue beyond the scope of GST, Manish Sisodia, the former Deputy Chief Minister, emphasised the necessity of aligning circle rates with market rates in March 2022. Also read:MMRDA's 'One Line, One Manager' plan speeds metro progressNamma Metro promotes National Common Mobility Card