Delhi Government Invites Feedback on Circle Rate Revisions

The Delhi government has announced a public consultation process for revising circle rates, which are the minimum property valuation rates used for registration and taxation. Stakeholders, including Resident Welfare Associations (RWAs), property owners, and industry bodies, are invited to submit their suggestions via email until October 16, 2023. This move marks the first revision of circle rates in over a decade, with the last changes occurring in 2014 for residential properties and in 2008 for agricultural and riverbed land.

In a notice issued by the Revenue Department, the government emphasized the importance of aligning these rates with current market conditions to enhance transparency in property transactions. The notice stated, “The Government of the National Capital Territory of Delhi is in the process of revising the circle rates for various categories of properties across Delhi.”

The proposed revisions categorize properties into eight groups (A-H), reflecting differences in location and affluence. Currently, Category A, which includes affluent areas such as Golf Links, Jor Bagh, and Vasant Vihar, has the highest minimum residential land rate at ₹7,74,000 per square meter. In contrast, Category H, representing less affluent regions, has the lowest rate at ₹23,280 per square meter. Other categories range from ₹2,45,520 per square meter (Category B) to ₹46,200 per square meter (Category G).

Stakeholder Concerns and Recommendations

The announcement follows a review initiated by Chief Minister Rekha Gupta, who formed a committee led by the Divisional Commissioner to assess current market trends and property valuations. Gupta acknowledged the “inconsistencies in the current circle rate structure,” indicating a need for urgent reassessment.

Concerns regarding the proposed changes have been voiced by various stakeholders. Than Singh Yadav, president of the Delhi Panchayat Sangh, stressed the importance of considering the varying levels of development in different areas. He proposed that residential land designated as commercial by the Delhi Development Authority (DDA) should see its circle rate increased by 200% or be reverted to residential status. Yadav also suggested a uniform circle rate for agricultural land set at ₹10 crore per acre, regardless of whether it is riverbed or barren land.

The RWAs have expressed caution regarding potential steep increases in circle rates. Atul Goyal, president of the United Residents Joint Action (URJA), highlighted the already rising property prices and urged the government to consider a reduction in circle rates. He emphasized that any increases would not be welcome without first addressing fundamental issues, such as inadequate sewage systems even in affluent neighborhoods.

As the deadline for feedback approaches, stakeholders are keenly aware of the implications these revisions may have on property values and transactions in Delhi. The government’s decision to engage with the community reflects an effort to ensure that the revised rates are equitable and reflective of the current economic landscape.