New Delhi: Buying a house in the city will now cost you more as Delhi Government on Monday hiked the circle rates by up to 250 percent for sale and purchase of property mainly to stop "flow of black money" in such transactions. The government also set a final deadline of December one for entrepreneurs who are yet to set up industrial units on land allotted to them.

This is the second such hike in circle rates in the city in the last nine months as it was increased by over 100 percent in February.

As per the revised rates approved by Delhi Cabinet, Rs 2.15 lakh per square metre has been fixed as new circle rate for category A colonies like Defence Colony, Greater Kailash, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas.

This means nobody would be allowed to buy land and property in these colonies for less than Rs 2.15 lakh per square metre. The existing rate in these colonies was Rs 86,000 per sq metre and the hike effected by the government is 250 percent.

"We have decided to hike the circle rates in the range of 15 percent to 250 percent so that the property transactions reflect the real value," Chief Minister Sheila Dikshit said after the Cabinet meeting.

She said government would be able to generate an additional revenue of Rs 800 crore annually due to hike in circle rates as it will spur collection from stamp duty and registration fees.

Revenue department officials said government hiked the rates as in most cases, actual rates of properties are not shown on paper due to which the government suffers loss in revenue in stamp duty and registration fees.

"We wanted to stop flow of black money in the property transaction and enhance revenue generation," they said.

The circle rate of properties is the system in which the government fixes the minimum or maximum rate of the land depending on the category of colonies it falls in and no transaction is allowed below the minimum rate fixed by the government in any area of the city.

Dikshit said the government has also decided to revise the rates at an interval of two years.

As per the cabinet decision, Rs 1,36,400 per square metre has been fixed for B category colonies like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave. The rate for these colonies was fixed at Rs 68,200 per sq m in February.

Similarly for category C colonies, the rate has been hiked by 100 percent and the new rate would be Rs 1,09,200 per sq m instead of current Rs 54,000 per sq m.

For category D colonies, the rate has been hiked from Rs 43,600 per sq m to Rs 87,200, which is an increase of 100 percent.

For category E and F, the rate has been fixed at Rs 47,800 and Rs 38,640 per sq m instead of existing Rs 36,800 and Rs 32,200 respectively.

The new rate for categories categories G and H was fixed at Rs 31,000 and Rs 15,870 against current rate of Rs 27,400 and Rs 13,800 respectively.

Revenue Minister A K Walia said the new rates may come into effect within one week. A notification would be issued to affect the hike.

He said circle rates in Delhi are still less than circle rates in satellite towns like Noida and Gurgaon.

The circle rates were first introduced in Delhi in 2007, dividing the capital into eight categories, and were notified under the provisions of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007 on July 18, 2007.

Deadline on land use for industries

Delhi government on Monday set December one as the final deadline for nearly 900 entrepreneurs who are yet to set up industrial units on land allotted to them for relocation of industries from residential areas.

The plots were given to the entrepreneurs between 1999 and 2006 to facilitate relocation of industries from residential areas to conforming zones and out of around 22,000 beneficiaries, 900 have not yet set up any industrial unit.

A meeting of the Delhi Cabinet, presided by Chief Minister Sheila Dikshit, decided to give a final chance to the entrepreneurs before cancelling the allotment of plots.

"We have decided to offer a final deadline of December 1," Dikshit said after the meeting.

The previous deadline to set up the factories ended on June 30 this year and the industries department had started the cancellation process on recommendation of infrastructure development agency DSIIDC which has been given the task of maintaining 29 industrial estates. But the government today decided to offer a "last chance".

The government had extended the deadline for setting up industrial units several times in the last couple of years.

Officials said 22,449 plots were given between 1999 to 2006. But in 2007 and it was found that some of the allottees did not take up construction activities and to ensure that plots are put to proper use, concerned allottees were asked to set up the units within a year.

Officials said that despite repeated warnings, no construction activity took place in about 900 plots. Till last year, no construction activity had taken place in 8,123 plots but following the government's warning, a majority of such entrepreneurs had started industrial activities in the allotted plots.

To facilitate construction and relocation of industrial units, procedures for sanction of building plans and approvals for obtaining loans were also simplified by the government.