Property prices in Delhi are likely to zoom further with Delhi government hiking the circle rates -- the minimum valuation of land and immovable property -- by up to 200 per cent to check black money in transactions.
The rates in Category A colonies like Greater Kailash, Defence Colony, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas have been hiked by 200 per cent.
As per the rates approved by Delhi Cabinet on Wednesday, Rs. 6.45 lakh per square metre has been fixed as new circle rate for category A colonies as against existing rate of Rs. 2.15 lakh. This means nobody would be allowed to buy land and immovable properties in these colonies for less than Rs. 6.45 lakh per square metre.
The rates in Category B neighbourhoods like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been increased by 50 per cent while for rest of the areas, the hike has been fixed at 22 per cent.
As per the cabinet decision, Rs. 2,04,600 per square metre has been fixed for B category colonies as against current rate of Rs. 1,36,400 per square metre.
Delhi Revenue Secretary Dharampal said the government decided to hike the circle to cut the black money component in property transactions. He said government expects to generate an additional revenue of Rs. 200 crore from hike in circle rates.
In 2011-12, the Delhi Government had collected Rs. 2,000 crore in revenues from registration of properties and Rs. 1,300 crore has been collected so far in current fiscal.
Dikshit said circle rates were increased as last hike was effected in November, 2011.
"The current rates are quite less than the prevailing market rates at which transactions are taking place. That is why we decided to hike it," Dikshit said adding, "In order to curb the flow of black money, it has become important to rationalise the minimum circle rates."
She said the Cabinet took a sympathetic view in effecting hike of the rates in colonies under categories C,D,E,F,G and H For C category colonies, the circle rate has been hiked to Rs. 1,33,224 per square metre from current Rs. 1,09,200 while in neighbourhoods under Category D the new rates will be Rs. 1,06,384 as against existing rate of Rs. 87,200.
The rate for colonies under category E has been hiked from Rs. 47,840 to Rs. 58,365 per square metre while for F category colonies the rate will be Rs. 47,140 as against current rate of Rs. 38,640.
In respect of category G colonies, the new rate will be Rs. 38,442 per square metre as against existing Rs. 31,510 while for H category colonies it has been hiked to Rs. 19,361 from Rs. 15,870.
The circle rates were first introduced in Delhi in 2007, dividing the capital into eight categories, and were notified under the provisions of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007 on July 18, 2007.
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