Govt may meet on new circle rates after objections to hike

In the backdrop of a prolonged slump in the real estate sector, the Gautam Budh Nagar administration has received nearly two dozen objections against the latest hike in circle rates for selling and purchasing property, mostly in the commercial and group housing categories.

The UP stamps and registration department on Tuesday said it would soon meet the district magistrate to explore a revision in the new circle rates, which are to be enforced from August 1.

SK Singh, assistant inspector general of UP stamps and registration department, told TOI that the complaints in the group housing category is against 5% extra charge for each extra facility, such as swimming pool, club, etc, with an aggregate cap of 25%. Some have complained that the new circles rates are unrealistic.

"We will hold a meeting with the Gautam Budh Nagar district magistrate to address the objections. The DM, however, is reluctant to reduce the circle rates in the group housing category," he said.

Notably, the new circle rates have brought a sigh of relief to thousand of homebuyers, particularly those whose flats fall within the 10km radius of the Okhla Bird Sanctuary. However, housing plots and group housing plots in Noida are to get costlier by 5%.

"Some residents have welcomed the move not to hike the circle rates in group housing category, while at the same time some residents have lodged their objections against the 5% extra charge for each extra facility," Singh said.

He added, "Some residents feel that in some sectors in Greater Noida, the circle rates are higher than the prevailingMARKET rates. Especially in Chi, Pi, Zeta, Sigma and Eta sectors, circle rates are higher than the prevailingMARKET rates. In many sectors, the circle rates are Rs 27,000 per sq m However, the market rates is between Rs 20,000 and Rs 25,000."

Singh said the department would take up all these issues with the Gautam Budh Nagar district magistrate before August 1. "We have received some signals from the DM that he is not interested in slashing the rates in the group housing category. He has already given relief to flat buyers. We have keep the revenue target in mind as well."

SOURCE: THE TIMES OF INDIA