The issue of downgrading of the circle rate category of several affluent colonies has raised eyebrows. It has put two Delhi Government departments at loggerheads. The Finance Department is not amused with the proposal of the Revenue Department to lower categories of posh colonies.
As per the proposal mooted by the Revenue Department, New Friends Colony has been proposed to be put into B category from A category, while its adjoining colony Sukhdev Vihar has been relegated from B to C category.
Putting posh colonies in lower categories will severely bring down the circle rate and the resultant revenue to the exchequer. Similarly, industrial areas Bawana and Narela have been proposed to be relegated to E category from the present B.
Sources said that there appears to be an ulterior motive behind the downgrading of the posh colonies in South Delhi as it will affect the sale and purchase of properties in the region. It will help sellers and buyers of properties while the State exchequer will incur losses. “This could be a scam as bracketing of colonies from A to B and C will affect revenue collection. The market rates of properties are very high in these colonies, even then the department has proposed reducing category of colonies. Can the Revenue Department prove that property prices have declined in these coloniesIJ” said sources while questioning the surprise move of the department.
However, officials of the Revenue Department claimed that they have followed the third report of the Municipal Valuation Committee on categorisation of over 2,000 colonies, while officials of the Finance Department alleged that there are several irregularities in the proposal. It is noted that Revenue Department officials claimed that they have collected data from MagicBrick.com and 99acres.com websites which said there was a decline in property rates in New Friends Colony and Sukhdev Vihar.
According to sources, there is a nexus between property dealers and vested interests in the Revenue Department behind the downgrading of colonies. “There is also apprehension that if the circle rate is revised upwardly, the sale and purchase will decline in Delhi,” sources added.
“The Revenue Department has not reduced or upgraded the category of colonies as being propagated by the Finance Department. But if the Government wants to change the category, the department has no objection,” said officials of Revenue Department.
On the other hand, the Revenue Department has proposed a hike in circle rate in the range of 16 per cent to 106 per cent. To generate more revenue, the department has proposed to bring agricultural land under the ambit of circle rate.
Meanwhile, Delhi lieutenant Governor Najeeb Jung’s efforts to end deadlock between the two departments failed. No decision could be taken on the contentious issue of circle rates of properties due to differences between the two departments.
It seems that the lieutenant Governor is hesitant to take the final decision on the issue in the absence of an elected Government. Top sources told The Pioneer that the issue of re-categorisation of several colonies has not been decided at the high-level meeting chaired by lieutenant Governor.