DELHI: The capital may witness a 20-30 per cent hike in circle rates across various categories of properties over the next fortnight. The hike may be steeper for the upscale colonies in categories like A and B.
This is yet another attempt to tame the black market, to rationalize registration in view of market rates and to enhance revenue generation of the state which is now facing bad weather due to the economic slowdown. Senior officials are aiming for an early March decision to notify a revised circle rate regime.
The state is short of time as a decision on revising the circle rates can be taken only till the time the Election Commission of India does not notify the Model Code of Conduct for the Lok Sabha polls. With the committee on circle rates revision constituted by the revenue department expected to deliver its report by February 28, the department hopes to prepare the requisite proposal and seek approval of the lieutenant-governor on the matter.
The last circle rate revision happened in 2012 when the minimum rates for valuation of land and immovable properties were increased substantially. The current rates are: Rs 6.45 lakh per sq metre in A category colonies like Vasant Vihar, Jor Bagh, Golf Links, Anand Niketan, Friends Colony and Maharani Bagh. For B category colonies like Greater Kailash and Defence Colony, the rate is Rs 2.05 lakh per square metre. It is felt that these rates are much lower than the actual market rates prevailing in these areas. The circle rates for C category colonies is Rs 1,33,200 per sq metres, Rs 1,06,400 (D category), Rs 58,400 (E category), Rs 47,200 (F category), Rs 38,500 (G category) and Rs 19,400 for H category.
For the revenue department, enhancing revenue generation is critical. In the current fiscal, the revenue department had a target of Rs 3800 crore, but so far it has managed to collect a little over Rs 3000 crore and is unlikely to meet the target. The reasons for the slump in collections is attributed to the market slowdown and fewer property registrations. Also, the government had pinned its hopes on enforcing an e-court fee order which has been stayed by the high court and that has impacted revenue collections.
The lieutenant-governor, Najeeb Jung, at the first review after President’s Rule was imposed, had earlier this week asked the executive wing to focus on revenue collection with special focus on departments of revenue, excise and value added tax.