Property transactions in the city will become costlier as the Delhi government has decided to discontinue the 20 per cent rebate on circle rates from July 1, officials said on Thursday.
The decision was taken by the government as as the impact of the Covid pandemic has subsided and the economy of the city is recovering fast, they said.
“The competent authority has decided to discontinue the relaxation of 20 percent in cricle rates beyond June 30. The circle rates notified on September 20, 2014 will be applicable from July 1,” said an order issued by the revenue department of Delhi government.
The Arvind Kejriwal government had introduced the rebate scheme in February 2021 to revive the economy and help people hit by the impact of the Covid lockdown.
The scheme was extended till June 30 by the government in December last year.
According to revenue department officials, properties in Delhi are divided into eight categories from ‘A’ to ‘H’. While posh areas fall under the ‘A’ category, the least developed areas come under the ‘H’ category.
Under the government’s rebate scheme, the existing circle rate of land in ‘A’ category areas had gone down from Rs 7.74 lakh per square metre to Rs 6.19 lakh, the officials said.
In ‘H’ category areas, the circle rate was reduced from Rs 23,280 to Rs 18,624 per square metre, they said. The circle rates, in square per meter, of the eight categories as notified in 2014 are Rs 7.74 lakh for ‘A’, Rs 2.46 lakh for ‘B’, Rs 1.60 lakh for ‘C’, Rs 1.28 lakh for ‘D’, Rs 70,080 for ‘E’, Rs 56,640 for ‘F’, Rs 46,200 for ‘G’ and Rs 23,280 for ‘H’ category.
“The revenue department was asked by the minister in-charge to suggest if the rebate needed to be extended or discontinued. It was found that the economy is recovering with all its segments returning back to the pre-Covid levels with increased revenue generation,” said a senior government officer.
The rebate of 20 per cent was allowed to all categories of properties in housing, commercial and industrial segments to revive the real estate sector and help recovery of industrial and trade activites, he said.
The scheme was successful as it raised the numbers of property transactions and increased stamp duty revenue despite the 20 per cent rebate on circle rates, officials said.
The rebate scheme boosted finances of the the government with property registration revenue rising from Rs 3,552 crore in 2020-21 to Rs 4,997 crore in 2021-22 despite the sluggish economic activites due to Covid, officials said.