NOIDA: The stamps and registration department has submitted to the district magistrate a proposal to revise circle rates, which have remained the same for the past five years.
The proposal aims at increasing the circle rate by 25-30% in residential areas, 10% in industrial, commercial and IT sectors, and 15% in case of farmland.
The revision of circle rates will affect overall property prices across various categories as buyers will have to shell out more stamp duty.
Stamp duty for a property is collected on the circle rate announced by the district administration or land allotment rate decided upon by three development authorities — Noida, Greater Noida and Yamuna Expressway — in their areas, which is higher. The three authorities usually revise their allotment rates every six months or a year.
Shashi Bhanu Mishra, assistant inspector-general of registration, said the last time circle rates were revised were on Aug 8, 2019.
“Yes, the stamps and registration department has submitted a proposal to the district magistrate to revise the rates. Circle rates have remained unchanged since 2019. The cost of flats has gone up considerably in Noida and Greater Noida over the past few years. In comparison, the stamp duty collected — which is based on the circle rate — is much lower. The rates should be revised to close this gap somewhat,” Mishra told TOI.
Officials said the administration decided not to change the circle rates between 2020 and 2023 as the lockdown-hit real estate sector faced a slump. Usually, circle rates are revised annually and implemented from Aug 1.
In Noida, the rates will vary for sectors and categories like residential, commercial, industrial, and IT.
For instance, the rate for residential plots in Noida sectors 14 and 14A is around Rs 1,1 lakh per sqm, while it is Rs 79,200 in Sector 19.
In Greater Noida’s Alpha 1, 2, and Gamma 2, the circle rate is Rs 37,000 per sqm.
District magistrate Manish Verma said the new circle rates would be announced for public feedback in two days.
“We are currently studying the proposal. In the next two days, they will come out in the public domain for objections from people, if any. Residents will have a 15-day window to register any objections. Once the new rates are notified, no objections will be entertained,” he added.
In neighbouring Ghaziabad earlier this year, the stamps and registration department proposed to hike circle rates between 15% and 20% across residential and commercial properties. This was after a two-year freeze.
Source Homevior.in
