In a significant policy move aimed at aligning official property valuations with market realities, Delhi Chief Minister Rekha Gupta on Saturday announced a revision of the city’s circle rates—the government-notified minimum property valuation used for stamp duty and registration.Revise Circle Rates
Highlighting the gap between existing circle rates and actual market values, CM Gupta directed the formation of a committee chaired by the Divisional Commissioner to oversee the revision process. The committee will study present market trends and property values to recommend a fresh and realistic rate structure for land and immovable properties across Delhi.
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“There are major discrepancies in the current circle rate structure across various parts of Delhi. A reassessment is necessary to ensure equity and transparency,” the Chief Minister stated during a press briefing.
Circle Rate Revision After Over a Decade
Delhi last saw a hike in circle rates for residential areas back in 2014. The existing classification—from Category A (posh localities) to Category H (unauthorised colonies and villages)—has remained unchanged despite significant real estate market shifts. While a past proposal aimed to raise agricultural land rates from ₹53 lakh per acre (fixed in 2008) to ₹2–5 crore, it was never officially notified.Revise Circle Rates
According to senior officials, the existing rates are undervalued by up to 35% compared to prevailing market prices. The proposed revision will consider feedback from stakeholders, and may involve re-categorising colonies based on location, infrastructure availability, and current property demand.
Previous Efforts and Roadblocks
Efforts to revise the circle rates have been stalled multiple times in recent years. The revenue department’s 2021 proposal to introduce sub-categories within the A–H structure was sent back by the finance department for further revisions. An empowered committee was created in 2016 and four working groups were formed in 2021, but no final notification was issued.
In 2022, then Deputy Chief Minister Manish Sisodia emphasized the importance of revising the rates to boost non-GST government revenues. In September last year, Lieutenant Governor VK Saxena also instructed the revenue department to present a revised proposal, which remained in draft form.
Broader Urban Development Agenda
During a meeting with the task force on urban development and infrastructure, CM Gupta also emphasized the need for simplified and accountable construction-related processes. She called for urgent action on redevelopment of unauthorised colonies, ownership rights regularisation, and infrastructure upgrades in industrial zones.
“All civic agencies must act proactively for the improvement of unauthorised colonies,” she said, instructing the Delhi Development Authority and the Urban Development Department to submit a comprehensive report addressing long-pending issues related to property ownership and registration.
The upcoming revision of circle rates is expected to have a wide-ranging impact on Delhi’s property market, potentially improving government revenues, enhancing transparency, and offering better valuation benchmarks for residents and developers alike.