In a major relief to residents of the national Capital, Delhiites will be able to re-evaluate their property if its price is less and the circle rate in their area is high. The Delhi High Court on Wednesday gave this judgment.
Hearing a petition moved by Manu Narang, Justice Rajiv Sahai Endlaw said, “The parties presenting instruments/ transfer document of basements of residential properties for registration, if of a consideration lower than the consideration / valuation in accordance with the circle rates, shall upon their instruments/transfer documents after registration, under Section 47-A supra being referred to the Collector, be entitled to satisfy the Collector of the consideration/valuation of the subject basement in residential properties being lower than the consideration applicable to instruments/ transfer documents of other floors in the same property and the Collector shall proceed to determine the same.”
Narang in his petition had stated that the circle rates are discriminatory, arbitrary, unreasonable, and have been framed without proper application of mind.
He also stated that the exercise of valuation of properties in Delhi has not been undertaken with due consultation or application of mind and that the frequency of revision of Circle Rates in Delhi is against the mandate of Rule 4 (2) of the 2007 Rules supra.
He had also sought the a court order for lower courts to the respondents to determine the circle rates on the basis of basic amenities and infrastructure as provided to the areas in various parts of Delhi.
Circle rate is the minimum rate for property or assets (plots, independent houses, flats) in a particular area/locality. From a realtor’s point of view circle rate is the minimum value at which s/he can register a property.
The circle rates are always lower than the existing market rates, which in turn are determined by market forces driven by demand and supply.