Lt Governor clears circle rates

New Delhi, July 16 (UNI) Lt Governor Tejender Khanna tonight cleared the 'circle rates' for properties in various areas of the city, announced by the State Cabinet last month.

''The Lt Governor has cleared the circle rates for properties which were announced by the Delhi Cabinet last month. With this, the rates have come into immediate affect,''a spokesman for the LG office said.

The rates were announced by the Delhi Cabinet, chaired by Chief Minister Sheila Dikshit, on June 18.

The new circle rates announced by the Cabinet range from Rs 43000 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 27300 per sq m of land, that for category D were fixed at Rs 21800 per sq m, Rs 18400 per sq m for category E and Rs 13700 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.

The state government expects 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.

UNI