Buying a house in the capital will now cost you more as Delhi Government on Monday hiked the circle rates by up to 250 per cent for sale and purchase of property mainly to stop "flow of black money" in such transactions.
This is the second such hike in circle rates in the city in the last nine months as it was increased by over 100 per cent in February.
As per the revised rates approved by Delhi Cabinet, Rs 2.15 lakh per square metre has been fixed as new circle rate for category A colonies like Defence Colony, Greater Kailash, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas.
This means nobody would be allowed to buy land and property in these colonies for less than Rs 2.15 lakh per square metre. The existing rate in these colonies was Rs 86,000 per sq metre and the hike effected by the government is 250
per cent.
"We have decided to hike the circle rates in the range of 15 per cent to 250 per cent so that the property transactions reflect the real value," Chief Minister Sheila Dikshit said after the Cabinet meeting.
She said government would be able to generate additional revenue of Rs 800 crore (Rs 8 billion) annually due to hike in circle rates as it will spur collection from stamp duty and registration fees.
Revenue department officials said government hiked the rates as in most cases, actual rates of properties are not shown on paper due to which the government suffers loss in revenue in stamp duty and registration fees.
"We wanted to stop flow of black money in the property transaction and enhance revenue generation," they said.
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Buying a house in the capital will now cost you more as Delhi Government on Monday hiked the circle rates by up to 250 per cent for sale and purchase of property mainly to stop "flow of black money" in such transactions.