Following the direction of Ministry of Home Affairs (MHA), lieutenant Governor Najeeb Jung has directed the Arvind Kejriwal Government to ‘rescind’ its notification of August 4, 2015 in which circle rates of agricultural land was increased in a range of
Rs1 crore to Rs3.5 crore in the national Capital without his approval.
In other words, the AAP Government had hiked the circle rate for agricultural land but the same has been struck down by the MHA.
Now the issue is what will happen to those who had paid revised circle ratesIJ
What will happen to those properties that were registered between August 4, 2015 and October 6, 2016IJ Top sources said the l-G has sought a fresh proposal after rectifying infirmities that he has pointed out in the Government’s notification.
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. According to sources, the withdrawal of the notification would result in the 2008 circle rates kicking in where per acre rate was Rs53 lakh. But the AAP Government had, in its first budget, steeply hiked the rates in a range of Rs1 crore to Rs3.5 crore per acre.
“The Ministry of Home Affairs (MHA) letter of 31.01.2011 on the subject of circle rates for purpose of revision of circle rates for purpose of charging stamp duty in NCT of Delhi and to convey that in the light of order dated August 4, 2016 of High Court of Delhi in Writ Petition (civil) no 5888/15 and no 7934/15 and the opinion rendered by the learned law officer, MHA letter dated 31.01.2011 addressed t o the then Chief Minister and lieutenant Governor of Delhi respectively referred above are hereby rescinded,” RK Pandey, Under Secretary to the Government of India said in a communiqué to Secretary to lieutenant Governor of Delhi.
“If fresh proposal is not sent to the l-G, the revenue department will lose a huge amount of revenue collection. It is noted that the revenue collection from stamp duty was Rs3,434 crore in 2015-16 and it is fixed Rs4,000 crore in the current fiscal year,” officials said.
The circle rates of property haven’t been revised since 2008. Even in 2008, the circle rate was revised with the approval of the l-G’s office. The circle rate hike in 2015 was hailed as a pro-farmer decision by Chief Minister Arvind Kejriwal in his all public meetings and rallies in Delhi and Punjab .
The Kejriwal Government had maintained that it did not need to send the proposal to the l-G as it was part of the budgetary proposals approved by him.