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No land can be registered at a rate that is below the circle rate.

After a gap of 10 years, the Delhi government has now started reviewing the circle rates for residential, commercial, and industrial lands. The circle rates were last revised in 2011 under the Shiela Dixit-led Congress government.

Why circle rates are important

The reviewing of the circle rates can impact the land and property prices in Delhi. Circle rates are the minimum rates of land and properties at which they are registered. They also act as slabs that determine the stamp duty and registration charges levied by the state. No land can be registered at a rate that is below the circle rate.

Feedback sought

The Delhi government has asked the administration of the 11 districts to furnish details of land within their boundaries along with suggestions from other stakeholders. The prescribed format for submitting feedback and suggestions has already been uploaded on websites of different districts, according to an official. All districts are currently gathering feedback from the stakeholders. The last date to submit feedback is July 31.

The district administrations have also asked suggestions from Resident Welfare Associations (RWAs), architects, landowners, registered builders and other groups to determine a fair re-valuation of land rates.

Committee to examine suggestions

All the feedback received from the stakeholders will then be sent to an existing government committee made up of officials from the Delhi Development Authority, municipal corporations and other administrative agencies. The committee after examining the suggestions and recommendations will present them to the Delhi government.

The committee will determine the core of opinions and it will form the basis of its recommendations that will be sent to the government. Post that, they will be reviewed by the government to take a final decision which will determine the new circle rates that will be effective in the national capital.

The circle rates of various classes of properties, under the labels of A to H, will be reassessed and revalued. The rate of properties post-assessment could increase by different percentages in different categories.

Bid to boost realty sector

Earlier in February, the Delhi government had offered a 20% rebate on circle rates in different categories of properties to revive economic activity and give a much-needed boost to the real estate sector.

The government felt that if the circle rates are lowered, it will lead to more transactions and stagnation in the sector would be averted.