Relief for CWG Village apartment buyers
Registration begins at transaction cost but flat owners need to hurry before circle rates go up
In a major relief to the high-profile Commonwealth Games Village flat buyers, the sub-registrar (Geeta Colony) has begun registering their apartments at the original purchase price. All the 20 applications presented for registration before the sub-registrar have been cleared.
The issue got mired in controversy when the revenue department held up the registration process for calculating stamp duty. The apartment owners wanted to pay stamp duty on the purchase cost of the flat, which was around R12000 per square feet while the revenue department wanted to factor in the prevailing market price of around R20,000 per sq ft.
The legal position was that the stamp duty had to be charged either on circle rate or purchase cost, whichever was higher. In case of CWG apartment owners, the purchase cost ( R12,000 per sq ft) was much higher than the circle rate (then at R7009 per sq ft).
According to a close source in the revenue department, “The matter would have taken months, but once the story appeared in HT Estates, the Collector of Stamp, who is a quasi-judicial authority in these matters, expedited the whole issue and took a call to levy the stamp duty on the purchase cost of the apartments (as reported in HT Estates).”
Now CWG flat buyers need to get their flats registered before the circle rates go up.
“The circle rates of various kinds of properties in Delhi may go up anywhere between 30% to 100% or even more than that. In case it doubles, the apartment buyers will have to pay more stamp duty, so they should get their flats registered as soon as possible.”
The HT Estates issue dated October 20, 2012, highlighted the plight of CWG Village flat buyers