Govt sets up panel to look into circle rate revision

WITH PROPERTY rates in the capital falling post-demonetisation, the Delhi government has set up a committee to rationalise circle rates.

Headed by Divisional Commissioner Manisha Saxena, sources said the committee has been tasked with “making some course corrections” in the property market.

According to sources, the committee is expected to delve into property rates, including market and prevailing circle rates. This rate comparison will factor in the realty sector of the National Capital Region as well.

“A report by an evaluation board, which proposed circle rate revision, was not accepted by many agencies. To reach to a consensus, a new committee was formed to look into this,” said a senior official at the revenue department.

The committee will look into circle rate rationalisation for 29 industrial pockets as well as rates slashed by Noida after demonetisation. Sources said industrial pockets too will witness a rate revision.

However, a senior official said rates should not be brought down too much as it is the only factor that will keep a check on black money.

“Lowering circle rates is alright but market rates too should go down accordingly. Otherwise, it will defeat the purpose of lowering the circle rates. Lowering of circle rates, especially in south Delhi areas, is expected,” he said.

The committee is set to furnish its recommendations to the Lieutenant-governor soon.

Formed last week, the committee includes the three MCD commissioners, chairman of the New Delhi Municipal Council and DSIDC chairman.

Why the revision

■ Circle rates are being revised as the revenue department noticed a slump in property registration. ■ In November last year, registrations declined by 38 per cent compared to October. ■ Between August and September, sale deeds decreased by 7 per cent but rose by 15 per cent in October. ■ Compared to November 2015, property registrations dipped by 16.4 per cent in November 2016.