Home prices in Delhi are set to zoom further as Delhi government hiked the circle rates -- the minimum valuation at which properties have to be registered with the government -- by upto 200 per cent mainly to check black money component in property transactions.
The rates in Category A colonies have been hiked by 200 per cent, category B by 50 per cent while in remaining coloneis the rates will go up by 22 per cent.
As per the rates approved by Delhi cabinet, Rs6.45 lakh per square metre has been fixed as new circle rate for category A colonies like Greater Kailash, Defence Colony, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas.
This means nobody would be allowed to buy land and immovable properties in these colonies for less than Rs6.45 lakh per square metre. The existing circle rate in category A colonies is Rs2.15 lakh.
The rates in Category B neighbourhoods like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been increased have been fixed at Rs2,04,600 per square metre as against the current rate of Rs1,36,400 per square metre.
The circle rates were last hiked in October last year by upto 250 per cent.
Chief Minister Sheila Dikshit government hiked the rates as it felt the current circle rates were far lower than the actual market price of a property.
"We have hiked the circle rates keeping in view the market rates of the properties. One of the main reasons for the hike is to curb the flow of black money in sale and purchase of properties," she said.
Officials said increase in circle rates will definitely push up property prices in the city.
Delhi Revenue Secretary Dharampal said the government decided to hike the circle rates to cut the black money component in property transactions.
He said government expects to generate an additional revenue of Rs200 crore from hike in circle rates.
In 2011-12, the Delhi government had collected Rs2,000 crore in revenues from registration of properties and Rs1,300 crore has been collected so far in current fiscal.
For C category colonies, the circle rate has been hiked to Rs1,33,224 per square metre from current Rs1,09,200 while in neighbourhoods under Category D the new rates will be Rs1,06,384 as against existing rate of Rs87,200.
The rate for colonies under category E has been hiked from Rs47,840 to Rs58,365 per square metre while for F category colonies, the rate will be Rs47,140 as against the existing rate of Rs38,640.
In respect of category G colonies, the new rate will be Rs38,442 per square metre as against existing Rs31,510 while for H category colonies, it has been hiked to Rs19,361 from Rs15,870.
The circle rates were first introduced in Delhi in 2007, dividing the national 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.