DELHI GOVT HOPES POLICY WILL HELP REVENUE GROW

After a year of sluggish growth, the revenue department is hoping that the land pooling policy will augment income.

Officials said the policy will boost the real estate market, which has been on the downslide for the past two years, and in turn increase collections through stamp duty and property registration.

Revenue collection witnessed an 8% dip during the last financial year. “In 2016-17, revenue generation from stamp duty and property registration was Rs 3,146 crore, which was 8% less than the previous fiscals. On the contrary, 2014-15 had witnessed a 21% increase,” a senior revenue department official said.

Officials also attributed the negative collection to the varied circle rates of the property in some parts of the capital.

Circle rates are minimum rates below which a property cannot be registered and forms the basis of stamp duty and registration charges. They are revised periodically. The Delhi government has revised circle rates upwardly four times since 2011. The last revision was done during the President’s Rule in September 2014.

Circle rates in the top category colonies are so high that they add up to more than the market value of the property. The real estate agents have been raising the issue and demanded the Delhi government to rationalise the circle rates. Give 2-20 hectares of land – Get 48% of developed land (43% residential + 3% commercial + 2% public/semi-public = 48%) Give more than 20 hectares of land – Get 60% of developed land (53% residential + 5% commercial + 2% public/semi-public = 60%) Along with the land, developer entity will have to give Rs 5 crore per hectare to DDA as External Development Charge (EDC)

Farmers, who are unable to give the EDC, will have to forego an additional 8% of the returned developed land

Those who opt not to give EDC will get 35% of land (residential) as return

Developer will get the returned land within 5 km radius of pooled land

DDA or the builder concerned will have to complete projects within 7 years

If DDA fails to develop basic infrastructure before the completion of projects, it will pay 2% of the EDC in the first year and 3% in the successive years to developer/land owners) Max permissible Floor Area Ratio – 400% Construction of houses for EWS amounting to 15% is mandatory over and above the maximum permissible FAR of 400%