Facing a severe funds crunch owing to hefty spending on projects related to the Commonwealth Games this year, the government of Delhi today decided to substantially raise the property registration fees in the capital to fetch an additional revenue of Rs100 crore annually.
Now, for registration of property worth up to Rs20 lakh, 1% of the total value will have to be paid as registration fee instead of the current Rs100.
The rate for property valued at more than Rs20 lakh has been fixed at Rs50,000.
The decision to raise the property registration fee under section 78 of the Registration Act, 1908, was taken at a cabinet meeting chaired by chief minister Sheila Dikshit.
"The fee of Rs100 was fixed in 1964. It had not been changed for the last 45 years," Delhi revenue minister Raj Kumar Chouhan said. "The increase in registration fee will fetch the government nearly Rs100 crore annually."
The new rates of fees in Table 3 for registration of documents such as conveyance deed, sale deed, gift deed, etc relating to immovable property for all compulsorily registered documents other than leases of immovable property is 1% of the consideration amount set forth or value as per circle rate, whichever is higher, subject to a maximum of Rs50,000.
The new rates of registration will also be applicable for registration of documents such as conveyance deed, sale deed, gift deed, partition deed, and settlement deed.
Justifying the increase, Dikshit said property registration fees had remained unchanged since June 27, 1964, and it was decided to rationalise the rates after comparing them with neighbouring states.
She said the rates in Delhi were very nominal and much lower than those prevailing in the states of Haryana and Uttar Pradesh.
The national capital, hosting the prestigious Commonwealth Games in October, is going through financial difficulties, especially after the Centre substantially curtailed the allocation for the purpose in the Union budget.
The Delhi government was allocated a meagre Rs50 crore for projects linked to the Games against its demand for a special assistance of Rs2,000 crore.
Chouhan said fees for several other categories have also been increased. Now the fee for registration of a will has been increased to Rs500 against the existing Rs100.
Fees under the miscellaneous category have also been increased to Rs1,000 for each instrument.
For example, to file an appeal or to submit an application under various sections of the Registration Act, the existing fee of Rs10 has been revised to Rs100.
Similarly, for authentication of a power of attorney, the existing rate of Rs3 has been increased to Rs1,000.
Officials said the revenue department in 2009-10 had collected a mere Rs1.31 crore through registration of various properties.