## Policy Analysis Report: Extension of Relaxation in Circle Rates for Valuation of Lands and Immovable Properties in Delhi
**1. Executive Summary:**
This report analyzes a notification issued by the Government of the National Capital Territory of Delhi regarding an amendment to the existing policy on the valuation of lands and immovable properties. The core purpose of this amendment is to extend a previously implemented relaxation of 20% in the minimum rates (Circle Rates) used for valuation purposes. This extension is valid until December 31, 2021. The key finding is that this amendment aims to provide continued financial relief to property owners and prospective buyers by reducing the applicable stamp duty and registration fees during property transactions.
**2. Introduction:**
This report aims to provide a comprehensive overview of the notification issued by the Government of the National Capital Territory of Delhi on September 30, 2021, pertaining to the extension of relaxation in Circle Rates for the valuation of lands and immovable properties. The analysis is based solely on the provided policy text.
**3. Policy Overview:**
This notification is an **amendment** to the existing "Delhi Stamp Prevention of Under-Valuation of Instruments Rules, 2007". The core objective of the original policy, as inferred from the amendment's context, is to determine the minimum rates for valuation of land and immovable properties in Delhi for the purpose of stamp duty and registration fees collection.
**4. Background and Rationale:**
The amendment extends a previously implemented relaxation of 20% in the Circle Rates. The likely reason for this extension, as inferred from the text, is to continue providing financial relief and incentivize property transactions in Delhi. The initial relaxation was presumably implemented to address market conditions or economic factors affecting the real estate sector, and this extension suggests a continuation of those conditions requiring ongoing support.
**5. Key Provisions / Changes:**
This amendment specifically introduces the following changes:
* **What is being changed:** The original policy regarding Circle Rates for valuation of land and immovable properties in Delhi is being amended to extend a previously granted relaxation.
* **What the new rule/provision is:** The new provision extends the existing 20% relaxation in the minimum Circle Rates until December 31, 2021. This means that the stamp duty and registration fees will be calculated based on the reduced Circle Rates during this extended period.
* **Difference/Effect of this Change:** Without this amendment, the Circle Rates would revert to their original, higher values. The extension allows for a continued reduction in stamp duty and registration fees, potentially stimulating the real estate market and benefiting property owners and buyers. The text provides tables detailing both the "Present minimum rates" and the "Effective Circle Rates" (after the 20% reduction) for different categories of properties and locations.
**6. Target Audience and Stakeholders:**
The target audience and stakeholders directly affected by this amendment include:
* Property owners in Delhi
* Prospective property buyers in Delhi
* Real estate developers
* Banks and financial institutions involved in property transactions
* Registration authorities in Delhi
**7. Implementation Aspects (Inferred):**
* **Responsible agency/bodies mentioned:** The Revenue Department of the Government of National Capital Territory of Delhi, specifically the Divisional Commissioner's office, is responsible for implementing this amendment. All registering authorities under the provisions of the Indian Stamp Act, 1899 and the Indian Registration Act 1908 are tasked with implementing these rates.
* **Timelines or procedures specified:** The amendment is effective immediately and will remain in force until December 31, 2021. The procedure involves applying the revised (reduced) Circle Rates during the registration of instruments related to land and immovable properties.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcome of this amendment is to:
* Sustain the momentum in the real estate market by maintaining reduced stamp duty and registration fees.
* Provide financial relief to property owners and buyers.
* Potentially increase the number of property transactions during the extension period.
* Increase revenue for the government through increased volume of transactions even at a lower rate.
The impact of the amendment is expected to be positive for the real estate sector in Delhi, as it provides a financial incentive for property transactions.
**9. Conclusion:**
The notification issued by the Government of the National Capital Territory of Delhi extends the 20% relaxation in Circle Rates for land and immovable property valuation until December 31, 2021. This amendment is a significant measure aimed at providing continued financial relief and stimulating the real estate market in Delhi. The continued application of the revised circle rates is a notable intervention for industry stakeholders for the specified timeframe.
Key Entities Referenced
National Capital Territory of Delhi: The governing territory to which the notification applies.
Delhi Stamp Prevention of Under-Valuation of Instruments Rules, 2007: The set of rules under which the notification is issued.
Ministry of Home Affairs, Government of India: The government ministry whose orders are referenced in the notification.
Indian Stamp Act, 1899: Act governing stamp duty, referenced in the context of property valuation.
Indian Registration Act 1908: Act governing the registration of documents, referenced in the context of property transactions.
Sanjeev Khirwar: Principal Secretary cum Divisional Commissioner Revenue of National Capital Territory of Delhi, signing the order.
Circle Rates: Minimum rates for valuation of land and properties for the purpose of payment of Stamp duty
Mayapuri, New Delhi: Location of the Dte. of Printing at Government of India Press.
रजिस्ट्री स.ं डी.एल.- 33002/99 REGD. No. D. L.-33002/99
भारत सर कार
GOVERNMENT OF INDIA
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एस.जी.-डी.एल.-अ.-30092021-230080
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SG-DL-E-30092021-230080
असाधारण
EXTRAORDINARY
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 281] दिल्ली, बृहस्ट्प जतवार, जसतम्ब र 30, 2021/आजव न 8, 1943 [रा.रा.रा.क्ष.ेदि. स.ं 191
No. 281] DELHI, THURSDAY, SEPTEMBER 30, 2021/ASVINA 8, 1943 [N. C. T. D. No. 191
भाग IV
PART IV
राष्ट्रीय रािधानी राज्य क्षत्रे दिल्ली सरकार
GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI
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, 774000 619200
ch 245520 196416
lh 159840 127872
Mh 127680 102144
bZ 70080 56064
,Q 56640 45312
th 46200 36960
,p 23280 18624
, 21960 17568
ch 17400 13920
lh 13920 11136
Mh 11160 8928
bZ 9360 7488
,Q 8220 6576
th 6960 5568
,p 3480 2784
, 25200 20160
ch 19920 15936
lh 15960 12768[PART IV DELHI GAZETTE : EXTRAORDINARY 3
Mh 12840 10272
bZ 10800 8640
,Q 9480 7584
th 8040 6432
,p 3960 3168
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50400 40320
30 ls Åij rFkk 62520 50016
50 oxZ ehVj rd 54480 43584
50 ls Åij rFkk 75960 60768
100 oxZ ehVj rd 66240 52992
100 oxZ ehVj ls
76200 60960 87360 69888
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fujUrj ykxw gksxa sA4 DELHI GAZETTE : EXTRAORDINARY PART IV]
REVENUE DEPARTMENT
NOTIFICATION
Delhi, the 30th September, 2021
No. F. 1(2854)/Regn.Br./Div.Comm./HQ/2020/6368.—In exercise of power conferred by rule 4
of the Delhi Stamp (Prevention of Under-Valuation of Instruments) Rules, 2007 read with the Ministry of
Home Affairs, Government of India SO 1736(No. 2/5/61-Judl-II) dated the 22nd July, 1961 and Notification
S.O. 2709 (41/2/66-Delhi), dated the 7th September 1966 and in continuation of the notification No.
F.1(2854)/Regn.Br./Div.Comm./HQ/2020/5453 dated the 26/02/2021, the Lt. Governor of the National
Capital Territory of Delhi hereby notifies the extension of relaxation of 20% in the minimum rates (Circle
rates) till 31.12.2021 for valuation of lands and immovable properties in Delhi for the purposes of the said
Act and Rules made there under, as specified in Annexure-I annexed to this notification and since it is
considered that these extension of minimum rates should be brought into force at once, the Lt. Governor
further directs that they shall come into force with immediate effect without previous publication.
The above rates, inter alia, shall be continued to be taken into consideration for registration of
instruments relating to lands and immovable properties in Delhi by all the Registering Authorities under the
provisions of the Indian Stamp Act, 1899 (2 of 1899) and the Indian Registration Act 1908 (XVI of 1908)
as in force in Delhi at the time of registration of instruments.
These revised rates shall continue to remain in force till 31/12/2021.
By Order and in the Name of the Lt. Governor of
the National Capital Territory of Delhi,
SANJEEV KHIRWAR, Principal Secy. cum-Divisional Commissioner (Revenue)
Minimum Rates (Circle Rates) for valuation of land and properties for the purpose of payment of
Stamp duty under Indian Stamp Act, as applicable to Delhi & registration fees under the Registration Act,
1908 in Delhi:-
TABLE 1
MINIMUM LAND RATE FOR RESIDENTIAL USE
Category of the locality Present minimum rates for Effective Circle Rates for
valuation of land for residential valuation of land for residential
use (in Rs. Per Sq.Mtr.) use (in Rs. Per Sq.Mtr.)
A 774000 619200
B 245520 196416
C 159840 127872
D 127680 102144
E 70080 56064
F 56640 45312
G 46200 36960
H 23280 18624
TABLE 2
MINIMUM RATES FOR COST OF CONSTRUCTION FOR RESIDENTIAL USE
Category of the locality Present minimum rates of Effective Circle Rates for valuation
construction for residential use (in of land for residential use (in Rs.
Rs. Per Sq.Mtr.) Per Sq.Mtr.)
A 21960 17568
B 17400 13920
C 13920 11136[PART IV DELHI GAZETTE : EXTRAORDINARY 5
D 11160 8928
E 9360 7488
F 8220 6576
G 6960 5568
H 3480 2784
TABLE 3
MINIMUM RATES FOR COST OF CONSTRUCTION FOR COMMERCIAL USE
Category of the locality Present minimum rates of Effective Circle Rates for
construction for commercial use valuation of land for residential
(in Rs. Per Sq.Mtr.) use (in Rs. Per Sq.Mtr.)
A 25200 20160
B 19920 15936
C 15960 12768
D 12840 10272
E 10800 8640
F 9480 7584
G 8040 6432
H 3960 3168
TABLE 4
MINIMUM RATES OF BUILT-UP FLATS UPTO FOUR STOREY
Category of Present minimum Effective minimum Present minimum Effective minimum
flats built-up rate (in built-up rate (in rupees built-up rate (in built-up rate (in
depending rupees per sq. per sq. mtr.) for DDA rupees per sq. mtr.) rupees per sq. mtr.)
on plinth mtr.) for DDA colonies and Group for DDA colonies / for DDA
area colonies and Housing Society (in Cooperative Housing COLONIES /
(sq.mtr.) Group Housing case of residential use) Societies / flats by Cooperative
Society (in case private builders (in Housing Societies /
of residential use) case of commercial flats by private
use) builders (in case of
commercial use)
Upto 30 sq.
50400 40320
mtr. 57840 46272
Above 30
and upto 50 54480 43584
sq. mtr. 62520 50016
Above 50
and upto 66240 52992
100 sq. mtr. 75960 60768
Above 100
76200 60960
sq. mtr. 87360 698886 DELHI GAZETTE : EXTRAORDINARY PART IV]
TABLE 5
MINIMUM RATES OF BUILT-UP FLATS HAVING MORE THAN FOUR STOREYS
Category of Property Present minimum built-up rate (in Effective minimum built-up rate (in rupees per
rupees per sq. mtr.) sq. mtr.)
Residential 87,840/- 70,272/-
Commercial 1,00,800/- 80,640/-
The Multiplying factors applicable to the various categories as notified by the notification
No. F. 1/953/Regn.Br./Div.Comm./HQ/R/2014/5943 dated 22/09/2014 shall continue to apply even
after 20% envisaged reduction in the Circle Rates.
Note: where part plinth area, say one floor, of an independent property other than a flat is sold,
the relevant minimum land cost may be taken for the proportionate plinth area sold, and
minimum cost of construction applied on plinth area sold.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.