Noida: Circle rate revision process begins, builders raise concerns over pitfalls of possible hike
NOIDA: The Gautam Budh Nagar administration on Wednesday started the process to revise the circle rates for the 2020-21 fiscal.
Developers, homebuyers and other stakeholders said they believe that due to the repercussions of the coronavirus (Covid-19) pandemic on the realty market, increasing circle rates will not be a feasible move. However, according to the administration, it has merely initiated the exercise on the process.
“Today (Wednesday), we merely held the first meeting on the issue of circle rates. We have discussed the circle rates with the sub-registrar and other administration officials. We have adequate time to deliberate and finalise the rates as it is just the start of the process,” said Suhas LY, district magistrate, Gautam Budh Nagar.
The Noida, Greater Noida and the Yamuna Expressway authorities, the sub-divisional magistrates and other officials, took part in the meeting and gave their opinions. In a week’s time, a proposal will be made after which objections or suggestions will be invited from the public before a final decision on the rates, said officials.
“No authority is of the view to increase the circle rates as the real estate market is undergoing its worst phase due to the pandemic,” said a Noida authority official, asking not to be named.
The ongoing circle rates will be effective till August 7, 2020. New rates are put into effect beginning August 8 of every year.
“We will finalise the new rates before August 7 as per rules. The decision on revision is to be taken in the future,” said LY. The DM discussed the circle rate issues with officials at the Sector 27 office.
Circle rates revision is an annual exercise done after inviting objections and suggestions from the general public. The circle rate is the rate at which a property is sold or bought. It is the circle rate at which the government charges stamp duty in fee for the registration process, which is required to transfer the property from one person to another. In Noida, the government charges 5% of the total property cost as the property fee, as of now
The homebuyers said they feel that a hike in the circle rate will affect their budget. The circle rates in Gautam Budh Nagar are in the range of Rs 20,000 per square metre to Rs 3 lakh per square metre, depending upon the location.
“The circle rates are already unrealistic in most of the sectors as compared to the level of civic services and existing infrastructure. The problem the buyers face is, for example, if in some areas the cost of a property is Rs 40 lakh, but it is valued at Rs 70 lakh as per the prevailing circle rates, the buyer will have to pay the stamp duty according to Rs 70 lakh value,” said SK Nagrath president of Jaypee Aman flat buyers’ association.
Developers said they also hope the rates will be reduced in some areas.
“The administration must reduce circle rates as per the market sentiment. Due to unrealistic circle rates, buyers are unable to purchase the property, which in turn affects the market,” said Prashant Tiwari, president of Western UP confederation of real estate developers association of India (CREDAI), a developers’ group.
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