The Gurgaon district administration has again revised the circle rates, increasing it by 15 to 20 per cent on Sunday. The new rates have come into effect from Monday. The circle rates were last revised in February this year, when it was hiked by 10-15 per cent. It was effective till March 31.
Real estate experts are not happy with the circle rates revision and they criticised the move.
Parveen Jain, vice-chairman, National Real Estate Development Council (NAREDCO), said, “The market rate in many parts of the city is either at par with the circle rate or below the circle rate. So, it is not right to suggest that there is a significant difference between the market rate and circle rate. Property rate in Gurgaon is already low and market is in a slump.”
Chief Minister Manohar Lal Khattar had earlier instructed the district administration to revise the circle rates twice in a year.
At the time of revision in February, the district administration had also announced that they will revise the circle rates again in April. The officials had said that the circle rates will be revised twice in a year to garner revenues.
With this, the property registration is all set to get costlier, as the new circle rates get effective from Monday.
“The very idea behind revising the circle rates is to ensure that the difference between the market rates and circle rates is not significant. The difference between circle rate and market rate should not be more than 20 per cent ,” said Hariom Atri, district revenue officer (DRO), Gurgaon.
“The revised circle rates reflect a balanced approach and will encourage more people to invest in property,” Atri informed.
Collector or circle rate is the minimum price at which a property is registered with the revenue department when being transferred, and the stamp duty levied on such properties is a major revenue earner for the government. The stamp duty is 8 per cent in urban areas and 5 per cent in rural areas.
However, the circle rates remain unchanged in licensed group housing (GH) societies (sectors 1-57), Ambience Island and Laburnum and others.