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Minimum rates for land, property valuation hiked

Staff Reporter

An attempt to curb black money in Delhi property deals

NEW DELHI: In a decision that would enhance the revenue of the Delhi Government and also curb black money in property deals, the Delhi Cabinet has raised the minimum circle rates for valuation of land and properties for purposes of registration under the Registration Act, 1908. For the purpose of computation of value of land and properties, the Cabinet adopted the categorisation of colonies used by the Municipal Corporation of Delhi for determining house tax.

Chaired by Chief Minister Sheila Dikshit, the Cabinet also decided not to make any further changes in the circle rates for the next five years.

After the meeting, Ms. Dikshit said the new circle rates would simplify assessment of stamp duty and bring in transparency, simplicity and efficiency in the process of registration. Stating that all aspects were taken into consideration before finalisation of the rates, the Chief Minister said the most reasonable option which makes circle rates rational and below the market rates had been exercised.

“The rates approved are much below the prevalent rates of adjoining areas like Noida,” she said.

The minimum rate for valuation of land for residential use has been fixed at Rs. 43,000 per square metre in Category A colonies such as Greater Kailash, Sunder Nagar and I P Estate; Rs. 34,100 in Category B areas like Kailash Colony, CR Park and INA Colony; Rs. 27,300 in Category C colonies such as Amar Colony and Siddharth Enclave; Rs. 21,800 in Category D areas such as Balmiki Basti and Darya Ganj; Rs. 18,400 in Category E colonies like Bhagwan Nagar and Siddharth Extension; Rs. 16,100 in Category F such as Sarai Kale Khan and Jamia Nagar; Rs.13,700 in Category G areas like Harijan Colony and Taimoor Nagar; and Rs. 6,900 per square metre in Category H areas of rural Delhi.

Stating that the circle rates would come into force after a notification, expected within a month, Ms. Dikshit said the Government had also decided not to change these rates that have been determined on the calculations pertaining to year 2005, for the next five years.

It has also fixed the “most reasonable” average cost of construction of Rs.5,600 per sq. metre or Rs.500 per sq. feet of plinth area for calculating the cost of built-up properties. The Cabinet has approved a different set of minimum rates for built-up flats. Where a flat is sold as a unit regardless of the age factor or categorisation of the colony in which the flat is located, depending upon the classification of the flat as Janta, LIG, MIG or HIG, the minimum rates would depend on its plinth area. These rates would be applicable for DDA colonies and cooperative and group housing societies also. While Rs.8,600 per sq. metre rate would be applicable for a flat up to plinth area of 30 sq. metre, the rate would be Rs.9,300 per sq. metre for plinth area above 30 sq. metre and up to 50 sq. metre; Rs.11,300 for plinth area above 50 sq. metre and up to 100 sq. metre; and Rs.13,000 per sq. metre for plinth area above 100 square metre. For flats in buildings having more than four storeys, a uniform plinth area rate of Rs.15,000 per square metre would be applicable as the minimum value of built-up flats. For multi-storied flats by private builders, a multiplicative factor of 1.25 has been made applicable for computing the rates.

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