UP IN ARMS Purchase price is key, say owners
Why are the CWG Village flat owners protesting? To understsand their problem, let’s assume there is a flat with a super area of 2053 square feet, the transaction cost of which in 2008-2009 was R2,86,16715. Its current value is being quoted at around R5crore. According to the latest notification issued by the revenue department (Delhi Government) the current highest circle rate for a private developer apartment anywhere in Delhi is R75,000 per square metre, ie, R7009 per sq ft. So, as per the prevailing circle rate, the cost of the flat should bes 2053x7009, which is R1, 43,89,477 Legally, stamp duty is charged on the higher amount of the two – transaction cost or the cost calculated on the basis of the circle rate. So, R2,86,16715 (transaction cost) is higher than R1,43,89,477 (cost calculated as per the circle rate).Experts say if the transaction cost is higher than the cost calculated on the basis of the circle rate, a sub-registrar has to calculate the stamp duty on the transaction cost. In the CWG Village case the sub-registrar’s office has held back the registrations and asked the dffice of the divisional commissioner (DC), Delhi for advice on charging stamp duty on the current market price of R5 crore. The CWG Village apartment owners want the flats to be registered at the purchase price at the earliest.