In an effort to align property circle rates with prevailing market prices, the Delhi Government is set to revise circle rates across the national capital. Chief Minister Rekha Gupta, during a high-level meeting on Saturday, directed officials to initiate the revision process and announced the formation of a dedicated committee under the Divisional Commissioner to oversee the task.
The directive was issued during a task force meeting convened to deliberate on infrastructure development and measures to enhance the Ease of Doing Business in the city.
The meeting was chaired by Chief Minister Gupta and attended by Delhi Cabinet Minister Shri Manjinder
Singh Sirsa, along with senior officials from the Municipal Corporation of Delhi, Delhi Development Authority, Delhi Metro Rail Corporation, Registrar of Co-operative Societies and representatives from the Confederation of Indian Industry (CII).
The committee will submit a detailed report based on current market conditions and property values, which will then be used as the basis for revising the circle rates.
She highlighted that there are inconsistencies in the current circle rate structure across Delhi that require reassessment and directed the task force to present the report at the earliest after considering all relevant aspects.
For example, the market rates in Panchsheel Park is `3.3 lakh per square metre, in Maharani Bagh `4.6 lakh and in New Friends Colony `3.5 lakh. In contrast, there are many colonies in Category B where market rates are much higher than the circle rate of `2.46 lakh per square metre. For instance, market rate in Defence Colony is `6.7 lakh and in Greater Kailash I `5.2 lakh per square metre.
Areas in the Capital are divided into eight categories — designated from A to H. Category A is for the most affluent, while Category H is for the economically weakest section of the society.
Category A areas include Golf Links, Vasant Vihar, and Jor Bagh, among others, while areas such as Greater Kailash, Defence Colony and Safdarjung Enclave fall under category B. Under category C are areas such as Tagore Garden and Subhash Nagar, while areas under categories D and E are mostly middle-income colonies. Circle rates for land and immovable property in Delhi have been a bone of contention for many of the city’s residents.
The circle rate is the minimum price at which the sale of property can be registered. For that reason, circle rates should be close to, but below, the prevailing market rate for property. If the situation reverses and the circle rate is higher than the market rate, the ability to sell property is significantly impacted.
Stamp duty and registration charges will be higher than they should be, an unwarranted cost that no buyer would
willingly bear. Last year, a revenue department committee suggested creating three subcategories for each of the eight categories, but the proposal was shelved as the exercise was “complex”.
The Chief Minister informed that the meeting focused on critical issues such as unauthorised colonies, housing
societies, redevelopment of colonies and modernisation of infrastructure in industrial zones. Special discussions were held on revising the circle rates, enhancing “Ease of Doing Business”, simplifying building by-laws and improving
coordination among various agencies. Circle rates are the benchmark price of the property, below which one cannot register their property deals.
Circle rates are the minimum prices fixed by the Government at which a property sale or transfer can be done. These were last revised in the city in 2014.
The circle rates of properties in Delhi fall under eight categories, largely depending on the development of civic infrastructure, locality and the types of houses constructed.
The process of revising circle rates involves suggestions and review by multiple stakeholders, including residents, and the departments of finance and law. A final proposal is submitted to the elected Government, which then sends it to the lieutenant governor (LG) for consideration and approval. It is only after the LG’s approval that a notification is issued formalising the changes. She also directed the DDA and Urban Development Department to prepare a comprehensive and detailed report addressing issues related to ownership rights and property registration in these colonies.
The task force presented a report which included several significant recommendations for the overall development of the city.
Key proposals in the report included the implementation of a single-window clearance system, standardised development control norms across all agencies, and time-bound approvals for large-scale projects.
The 10-point report also recommended reduction in amalgamation charges for commercial plots, no requirement of revised layout plans in MCD areas, having a green building policy to incentivise sustainable infrastructure development, rationalisation of property tax, optimum utilisation of land allotted to DMRC and reduction in FAR for hotel and other commercial plots.
The task force also proposed that slum redevelopment should be encouraged under the Public-Private Partnership (PPP) model, allowing for commercial activities within such projects.