Tussle between LG-Delhi government hits investors
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.”