Buying a property in Noida and Greater Noida may soon cost you more as the Gautam Budh Nagar district administration has decided to carry out the annual revision of the circle rates.
Circle rate is the minimum value at which sale or transfer of a plot, built-up house, apartment, commercial property or land takes place.
The rates are revised every year. The idea behind the annual revision is to maintain the rates of land according to the prevailing market rates and the facilities available.
The rates will be finalised by a committee headed by the district magistrate. The committee will have officials of the revenue and stamp and registration departments as members.
“We will begin a survey next month so that other related formalities can be completed,” said SK Singh, assistant inspector general (AIG) of stamp and registration department, Gautam Budh Nagar.
Homebuyers, however, said they will oppose any hike in circle rates as it will directly impact them. The stamp duty that is paid on registration of a property is directly proportional to the circle rates.
Property buyers say that the circle rates are high in some areas and should be reduced to match the market rates.
The administration is likely to begin a survey to identify areas where the circle rates are not as per the market rates.
In August 2015, the department increased circle rates from 5% to 10% across all categories.
In group housing societies, homebuyers have to pay extra amount on account of facilities such as lift, swimming pool and security provided by the builder .
“Besides paying additional money for swimming pool, lift, security etc to the builder, a buyer also has to pay extra fee for these services during registration of the property. We have already suffered because of delay in completion of residential projects. Now with a hike in the circle rates, we will be forced to pay more,” said Amit Gupta, a homebuyer.
However, in August 2015, the fees for facilities such as swimming pool and lift in Noida were reduced from 25% to 15%. In Greater Noida, the fees were reduced from 12% to 10%, officials said.
“Whether it will be reduced or increased this time will be finalised in the survey,” said Singh.
The problem that the buyers face is that 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. A buyer has to pay 5% of the property cost as registration fee.
Homebuyers said in many areas, where a residential project is ready for registration after a delay of six years, they will have to pay more as per the prevailing circle rates.
“Before 2013, the Uttar Pradesh government used to increase circle rates once in two years. But now it goes for a revision every August. The government should stop increasing circle rates until the delayed residential projects in Noida and Greater Noida are delivered to buyers,” said SK Nagrath, president of Jaypee Aman flat owners welfare association.
Credits Hindustan Times