Tus­sle be­tween LG-Delhi govern­ment hits in­vestors

HT Estates - - HTESTATES -

higher cir­cle rate of LPP area was that the de­mand of agri­cul­ture land would be high due to at­trac­tive LPP. Now on that pre­sump­tion the Delhi gover nment has hiked t he cir­cle rate but put the whole pol­icy in cold stor­age,” says Amit Jain, an in­vestor in the L zone.

Jain adds, “Not only that, in many ar­eas the mar­ket price is much less than the cir­cle rate. For in­stance, in north Delhi, along the GT Road, the mar­ket price of agri­cul­ture land varies be­tween ₹ 2.5 crore to ₹ 3 crore per acre, which is pretty close to the cir­cle rate of ₹ 3 crore per acre. How­ever, once you go into the in­te­rior ar­eas the prices are lower, go­ing down to even ₹ 1.25 crore per acre. I find it very strange that I pur­chase land at the mar­ket price of ₹ 1.25 crore per acre but my stamp duty is cal­cu­lated at ₹ 3 crore per acre.”

In­vestors also al­lege that this un­re­al­is­tic hike in cir­cle rates has en­cour­aged cor­rup­tion in the rev­enue depart­ment. “Take the case of an in­vestor pur­chas­ing land at the rate of ₹ 1.25 crore per acre. Even if he pays stamp duty on the ba­sis of the pre­vail­ing cir­cle rate, ie, ₹ 3 crore per acre, the sub-reg­is­trar can threaten to re­port the mat­ter to the in­come tax depart­ment for un­der­val­u­a­tion of prop­erty and ex­tort money from him. Many in­vestors are not aware that de­tails of all sale- deeds are sent to the in­come tax depart­ment as rou­tine prac­tice,” al­leges an in­vestor who claims to have paid ₹ 50,000 to a sub-reg­is­trar for not re­port­ing the mat­ter to the in­come tax depart­ment.

He adds, “Buy­ers are not aware of a lot of prac­tices and rules of the rev­enue depart­ment which sub- reg­is­trars of­ten take ad­van­tage of. For in­stance, if a pur­chaser is pay­ing stamp duty ac­cord­ing to the cir­cle rate but the price of the prop­erty quoted by him is lower than the cir­cle rate, the sub-reg­is­trar can’t con­fis­cate the sale deed. Many sub­reg­is­trars, in col­lu­sion with deed- writ­ers, are threat­ing buy­ers that they will con­fis­cate the doc­u­ments be­cause the prop­erty is un­der­val­ued.”

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