Impact of revised circle rate on purchase of property

The property prices have skyrocketed in the Delhi and NCR in the last 6-10 months. The government of Haryana has already hiked the circle rates by 10-12% in Gurgaon and Faridabad, the government of Uttar Pradesh also hike circle rates in Noida-Greater Noida and Ghaziabad by 10-20%.

The new circle rates for a hyper-potential zone like Gurgaon have already been tagged in revenue records and already effected. In DLF City Phase 1-4, where the market rate of land ranges between Rs 70,000 and Rs 1,00000 per sq yard, the circle rates have been increased from Rs 19,000-21,000 to Rs 21,000-23,000, according to revenue officials.

Following the latest decision Delhi Government regarding threshold limits of circle rates in different locations of Delhi, the property rates are likely to see north word trends.

At present the Capital has been divided into eight categories - A to H. The rates for different categories are given below.

New CIRCLE RATES IN DELHI

Minimum rate per square metre for valuation of land for residential use in Delhi.
Category Areas Option1 (Rs) Option2 (Rs) A IP Estate, Andrews Gunj, Anand Lok, Sunder Nagar, Greater Kailash I, II, III Rs 43,000 new rates are Rs 47,000.

For B Chittaranjan Park, INA Colony, Nizamuddin (E), Pragati Vihar, Jangpura, Kailash Colony Rs 34,100 new rates are Rs 37,300.

C Nizamuddin (W), Amar Colony, Siddharth Encl, Vikram Vihar, Lajpat Nagar I & II Rs 27,300 now new rates are Rs 29,800.

D Kasturba Nagar, Anna Nagar, Balmiki Basti, Press Enclave (Minto Road), Daryaganj, Amiganj, Sewa Nagar Rs21,800 now new rates are Rs 20,300.

E Arab ki Sarai, Amritpuri, Bhagwan Nagar, Siddharth Extension, Kasturba Niketan, Bhim Nagri Rs18,400 now new rates are Rs 20,100.

F Sarai Kale Khan, Nangloi, Tilak Khand, Govindpuri Extension, Subash Khand, Jamia Nagar Rs 16,100 new rates are Rs 17,600.

G Devinagar, Gautampuri, Azim Dairy, Taimoor Nagar, Canal Colony Okhla, Harijan Colony, Hauz Rani Mohulla 13,700 now new rates are Rs 14,900

H Rural Villages Rs 6,900 now new rates are Rs 7,500.

The circle rates are revised at every five years in Delhi. The implication of this move is that the property cannot be valued below the threshold rate. This will not only remove the undervalued transaction but also boosts the revenue of the government. However, the move will push up the real states prices as the threshold limits would be much higher than the undervalued prices quoted in the market. 

 

Detailed news can be viewed from the link in headline above.

with thanks : source : Central Chronicle

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E-GOVERNANCE PUSH - Public services data to be available online

Applying for local government services and accessing official data may soon be- come easier, with the informa- tion technology department looking to roll out an e-district project in four-five months.

 

All of India's 626 districts will have to automate 6-10 services, such as pensions, ra- tion cards, filing of cases in revenue courts, issuance of caste, marriage, income and employment certificates, etc. under the scheme.

Past records and certificates will be fed into a common data repository that can be ac- cessed online. District admin- istrations will have an 18-month deadline to com- plete the digitization. The depart- ment will spend 75% of the project cost, expected to be at least Rs2,500 crore, while states will shell out the rest.

It has ap- plied for fund- ing with the expenditure finance commit- tee, an official said. Any planned expenditure has to be approved by the panel. “The national roll-out of the project should begin within the next four-five months as soon as the cabinet approves the funding.“

“A pilot programme is being conducted currently in 40 dis- tricts across 14 states,“ said another bureaucrat. Neither official wanted to be named. Each state will be given Rs4 crore to carry out the digitiza- tion, the second official said.

The department expects to spend around Rs100 crore on the pilot programme, of which Rs50 crore has been released. E-district is one of the 27 mission mode projects being executed as part of India's push towards e-governance.

“While all the other digitiza- tion projects currently under- way in the country reach out to only a certain section of the citizens, e-district is the only project after the unique identi- fication (UID) project that will touch the lives of almost all In- dians in some way or the oth- er,“ said Navin Agrawal, exec- utive director of audit and consulting firm KPMG.

The UID project aims to as- sign a number to all Indians, expected to particularly bene- fit those who cannot access a slew of services due to lack of identification papers.

The grant for the e-district project will be higher than the Rs1,900 crore issued for UID.

The project will also offer a significant opportunity for In- dia's software companies, he said. Each state will appoint a vendor, who will build the ap- plication for digitization and automation of data, as well as implement it in each district.

States such as Tamil Nadu, which have started digitizing some records, will have to up- grade and link to the new mod- ule to ensure compatibility.

Wipro Ltd and ICICI Bank Ltd-backed 3i Infotech Ltd have been consultants to the edistrict project at the pilot stage, while India's largest IT firm, Tata Consultancy Services Ltd, was the imple- mentation agency in West Bengal and Maharashtra.

Various e-governance projects in India are an opportunity worth $9 bil- lion (Rs41,760 crore) over the next few years for the Indian software services industry, ac- cording to a February projec- tion of industry lobby group National Association of Soft- ware and Services Companies.

DETAILED NEWS CAN BE VIEWED FROM THE LINK IN HEADLINE ABOVE.

with thanks : source : LiveMint

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INVOLVING RWA's FOR COLLECTION OF PROPERTY TAX

This RWA has been crying hoarse for the last four years that RWAs should be involved in collection of property tax. Through this blog also on 15th March, we shared our views.  It appear that the government has realized now (TOI 17 June),and is planning to rope in RWAs for collection of property tax .  Better late than never. It is an excellent idea.  RWAs can also get some revenue to meet their day-to-day expenses.

 

Ram Gupta

General Secretary

Priyadarshini Vihar RWA

Delhi - 110 092.

EVERY DROP COUNTS - RED TAPE DETERS DELHIITES

Citizens would like to start rainwater harvesting but are discouraged by the number of clearances needed

If Chennai has been able to do it, why can't Delhi?'' TOI's campaign to promote rainwater harvesting in the capital has got several residents asking the question. What has become clear, by the number of people who approached TOI and other rainwater harvesting experts, specially after the campaign was launched, is that Delhiites are extremely keen on adopting rainwater harvesting but the lack of proper information and a multiplicity of agencies involved in clearing projects has deterred several of them from taking it up seriously.

GK-I, R-Block

For the past one year, residents of the area have been pursuing officials to give them permission to carry out rainwater harvesting on a main road. They already have two projects running inside  parks, for which the resident welfare association had no trouble getting clearance. The current project is stuck because permission from the DDA is required.

Rajendra Gupta, an office bearer with the association, recently wrote to chief minister Sheila Dikshit, asking her what steps residents were required to take if they simply wanted to follow the law. ``Our plans were cleared by the Central Ground Water Authority (CGWA) and other agencies like the MCD had given us the go-ahead. We had even drilled 100 metres for a borewell when the police stopped us, saying that we needed to get permission from the SDM. Our request has been pending with the SDM for the past month, and now we are being told the SDM is not authorised to give us the go-ahead," said Gupta.

Ashoka Avenue
Residents were inspired by the nearby Sainik Farms to take up rainwater harvesting on a community level a few months earlier. The RWA set out to identify 4- 5 spots where rainwater harvesting structures could be set up. But nobody knew who to approach for clearances or funds. R N Saxena, honorary secretary of the RWA, consulted with an NGO which works with water-related issues and met Delhi Jal Board officials.

with thanks : Times of India : Detailed news from link in headline above.

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CNG Prices Hiked By Rs 5.60 Per Kg In New Delhi

Indraprastha Gas Ltd (IGL) today hiked Compressed Natural Gas (CNG) prices here by over 25 per cent, following the government's move to more than double the price of natural gas.

CNG rates in Delhi will go up by Rs 5.60 per kg - from Rs 21.90 to Rs 27.50 per kg, IGL said in a statement here.

"The new consumer price of Rs 27.50 per kg in Delhi and Rs 30.60 per kg in Noida, Greater Noida and Ghaziabad would be effective from midight tonight," it said.

The hike was necessitated because of the government's decision to raise natural gas prices from Rs 3.2 per cubic meter to Rs 7.5 per cubic meter (USD 4.2 per million British thermal unit).

IGL, however, did not increase the price of gas that it pipes to households for cooking purpose.

with thanks PTI news : link in headline above

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Madhuvan public passage blockade by a pvt school of preet vihar new delhi

Public grievances commission chairman
Held hearing today and first time an officer of the rank of asset.commissioner was present.
Our blog had been covering this in earlier posts.
Proceedings
Asstt commissioner mcd was directed to file a detailed report within seven days regarding compliance of order of member PGC.
Copies of correspondence since 2005 were taken on record.
Pray for demolition of walls erected by school to block entry from main road and service road.

PROPOSED HIKE IN PROPERTY TAX RATES

Taking cue from the Delhi Government which has increased the circle rates for properties, the MCD proposes toincrease the property tax rates.  First,  plan for recategorization of colonies closer to Metro lines which willresult in multi-fold increase in property tax; then the increase in circle rates, and as if that was not enough,now a proposal to increase the property tax rates. What is going on!!  Why not, MCD go around with a begging bowl?

Are the Commonwealth Games being organized by picking the pockets of the public, or the government thinks that elections will never come again?

In my opinion, best way to come through the financial crunch in the MCD, is to chalk out a plan to prosecute the propertyowners who are not paying their taxes, and not by again and again fleecing the honest and law-abiding citizens who are paying  taxes regularly.

Ram Gupta
General Secretary
Priyadarshini Vihar RWA
Delhi - 110 092

Circle rates Vs. Property tax in Delhi

Metro or no metro, there are many other factors hurting the sentiments of Delhites, such as water scarcity, water logging, radiation through cell towers, parking facilities, pollution levels,  medical facilities, existing infrastructure etc., which were never considered while revising the circle rates.  It is really surprising that while raising the taxes, these are compared with the European & American countries & while providing infrastructure, these are not compared even with Bangladesh or Srilanka.

Anyhow, Delhi government has increased the circle rates of the property. As a result, it will get enhanced revenues on the sale & purchase of the property. But in normal terms it will not make any impact on the general public. The general public which is not willing to buy or sell any property in Delhi, will not feel any change. They will not get any additional income or facility. Things will remain as they are existing now. 

But it is really SHOCKING to find that just on the base of these enhanced circle rates, MCD is willing to revise the Property tax rates in Delhi. Delhites are already paying the enhanced costs of anything & everything on the name of  CWG. Now to crush them as the last nail in the coffin, MCD is revising the property tax. 

Do you think it is sensible ? 
Do you think that these practices are by the public, for the public, of the public ?

Please reply & add your comments.

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MCD May Also Revise Property Tax Upwards

The Delhi government's decision to increase circle rates of land and immovable properties in all circles may prompt the MCD to revise its property tax rates upwards.

Experts feel that as the circle rates have been increased by up to 200% in some areas, property tax will be revised by around 100% in these areas. In places where circle rates increase is not steep, the revision in the property tax could be lower.

In Delhi, property tax is fixed on the unit area basis. As the property prices are high in posh areas which are kept in the higher categories the circle rates are fixed at a higher rate. Similarly, the property tax rates in those areas are also pegged at higher levels.

Now, as the government has revised the circle rates upwards, MCD will use it to revise the property tax. Before the introduction of unit area method for calculation of property tax, the tax used to be levied on the basis of the value of the property. But, it led to lot of litigations. To remove the ambiguity and to introduce uniformity, the government introduced the unit area method. Under this, the property tax is calculated on the basis of prescribed unit area rate by the MCD.

In fact, Delhi government has already appointed a committee to revise the rates. The municipal valuation committee is likely to give the report by the end of this month. Experts feel that the revised circle rates will help the committee to prepare a report suggesting a rate hike. Any upward revision of the circle rates, will lead to huge jump in the MCD's revenue.


Detailed news can be viewed from the link in headline above.

with thanks : source : Times of India


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Delhi Hikes Circle Rates In Bid To Curb Black Money, Commercial Circle Rates Up 3-4 Times

The black money component in property transactions is set to dip. In a decision aimed at boosting the state government's dwindling revenue base, Delhi's cabinet on Monday raised the circle rates for valuation of land and immovable properties for charging stamp duty by up to 190.7%.Circle rates are the minimum rates at which land and property can be sold and bought in Delhi. The system was introduced in 2007.

 

 

The new rates will range from Rs 9,000 to Rs 1.25 lakh per sq metre, against the existing Rs 6,900 per sqm to Rs 43,000 per sqm. Under the existing system, Delhi was divided into eight categories `A' to `H' derived from the unit area property tax system of MCD. The old categorization has now been removed and colonies reclassified in 10 circles on the basis of assessed land costs in different localities. 

As far as commercial and industrial transactions go the hike is much higher. It is three times of each slab in case of commercial and 2.5 times of incase of industrial. Also residential rates will apply to properties located on mixed land use streets.

 

Revenue minister Raj Kumar Chauhan said the new slabs of Rs 1.25 lakh and Rs 1 lakh seem like a big jump from the previous top slab of Rs 43,000 but given the actual market rate of properties in colonies under these slabs, the circle rate is not much. According to estimates, transactions in these areas are barely 5% of all the transactions in the city as the prices are steep and run into crores.

Detailed news can be viewed at the link in headline above.

with thanks : source : Times of India

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Water crisis over, for now

Delhi's water crisis due to an agitation by Jats in Muradnagar in neighbouring Uttar Pradesh ended on Monday, when the community called off the agitation, after officials from the Ministry of Social Justice reportedly agreed to listen to their demand of OBC reservations in central jobs.

Water supply to Delhi Jal Board's (DJB) two water treatment plants (WTPs) — Sonia Vihar in south Delhi and Bhagirathi in east Delhi — was restored on Monday afternoon after a delegation of the Jat community met Ministry officials in Delhi.

"Ministry officials assured us that our demands would be closely monitored every week and would also be forwarded to the Prime Minister's office," Jat Arakshan Sangharsh Samiti president Yash Pal Singh Malik told HT from Muradnagar.

Hours later, DJB CEO Ramesh Negi told reporters in Delhi, "We are trying our best to restore water supply by tonight and are hopeful of normalising the situation by Tuesday morning," said DJB CEO Ramesh Negi.

The disruption in water supply to the Sonia Vihar and Bhagirathi WTPs led to a shortfall of 240-250 MGD (million gallons per day), approximately 35 per cent of total daily supply. 

"The whole of east Delhi and large portions of south Delhi did not get any water today. 

These areas are served by Sonia Vihar and Bhagirathi WTPs," Negi said. 

East Delhi was the worst affected. Said B S Vohra, secretary of Krishna Nagar RWA, "There has been no water supply even till late Monday evening. The DJB should have supplied water through tankers on its own." 

Till late Monday evening, Delhiites had no respite. Said Ram Gupta, general secretary, Priyadarshini Vihar RWA in south Delhi, "There has not been a single drop of water since morning. DJB officials are not even giving us a satisfactory reply."

Earlier in the morning, Delhi Chief Minister Sheila Dikshit said, "Our officials, including the Chief Secretary, have been holding talks with Uttar Pradesh officials and have also taken up the issue with the Union Cabinet Secretary and the ministries of Home Affairs, Water Resources and Social Justice."

However, the respite may be temporary, with Jat leaders threatening to disrupt the Commonwealth Games if their demands were not met with concrete results before July 10. 

"We will block water supply, oil and gas supplies from Mathura and Panipat and transmission grids during the Games, if the Centre fails to assure us OBC status," said Yash Pal Singh Malik, Jat Arakshhan Sangharsh Samiti president.

With thanks : HINDUSTAN TIMES

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