Delhi Cabinet announces new circle rates for properties

By Staff
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Google Oneindia News

New Delhi, June 18 (UNI) In what could be seen as an effort to check "black money" transactions in property, the Delhi Government today announced 'circle rates' for properties in various areas of the city.

A decision in this regard was taken at a meeting of the Delhi Cabinet presided over by Chief Minister Sheila Dikshit.

The new circle rates announced by the Cabinet range from Rs 43,000 per sq m for areas in Category A to Rs 6900 per sq m land for category H areas.

While rate for Category C have been fixed at Rs 27,300 per sq m of land, that for category D were fixed at Rs 21,800 per sq m, Rs 18400 per sq m for category E and Rs 13,700 per sq m for category G areas.

The cabinet also fixed the construction cost per sq m in these areas.

The circle rates will be reviewed every five years.

The introduction of circle rates in the city, a measure that was announced in this year's Delhi Budget, is being seen as a step to stem "black money" transactions in property.

Speaking after the meeting, Delhi Urban Development Minister Raj Kumar Chauhan said he expected the state government to net a profit of Rs 400 to Rs 500 crore from the measure.

According to revenue department estimates, black money transactions account for 40-60 per cent of the total property business in the city. Devaluation of property accounts for an annual revenue loss of Rs 500 crore to the government.

The proposal earlier met with resistance from several quarters after which a committee was formed to look into the matter.

The Delhi Cabinet discussed the committee's recommendations, which give two options one with "base rate" of 2005 which is almost the same as the earlier proposed rates and the other, a fresh set of rates with "base rate" of 2007.

UNI

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