NOIDA: The Gautam Budh district administration has decided to hike the circle rates of property by 25 to 30 per cent from November. All properties will be registered according to the new circle rates from November 1 onwards.
While the circle rates for residential, group housing, institutional and commercial properties will be increased by around 22 to 25 per cent, the industrial sector will witness an increase of 32.5 per cent. The district magistrate will hold a final meeting in this regard at the end of this week. “The administration decided that it was essential to raise the circle rates in the district as property prices have increased considerably. The new circle rates will come into effect from next month,” said Sarvajeet Ram, additional district magistrate (finance), Gautam Budh Nagar.
The new rates have been arrived at on the basis of the current allotment rates of property and land in Noida and Greater Noida, said V D Sharma, DIG (Stamps). The hike has been proposed to bridge the gap between the current real estate prices and offered circle rates in the sectors. “Hike in circle rates will discourage people from buying and selling property below the market price because the proposed circle rate will cover the gap between the present circle price and its market value,” Sharma added.
The decision to increase the circle rates in the two cities had been under consideration since July this year and the administration has finally decided to revise the circle rates in Noida, Greater Noida, Dadri and Jevar. The last hike in circle rates in the district was implemented in 2010. The circle rate was hiked between 15 and 20 per cent at that time.
Circle rate is the minimum rate at which stamp duty is charged on transaction of a property. It is rampant practice for many property sellers and buyers to declare the value of transaction at a lower rate to get away with a lesser stamp duty payment. This leads to a huge loss in revenue for authorities and, thus, the same is revised depending on the prevailing market rates.
TNN Oct 18, 2011, 04.07AM IST
