Noida may hike circle rates only in ‘premium’ areas

The suggestion was bolstered by the Noida Extension homebuyers’ association on Monday calling off its protest against the new circle rates.

NOIDA: Indicating a climbdown from its plan to effect a steep hike in circle rates across Noida, the district administration hinted on Monday the proposed increase would not affect middle-class housing and would be restricted only to premium areas of the city.

The suggestion was bolstered by the Noida Extension homebuyers’ association on Monday calling off its protest against the new circle rates, claiming it had information that it would not affect them.

District magistrate N P Singh said the increased rates wouldn’t affect more than 5% of the total number of new registrations. “The overall impact of the increase in circle rates will be on 5% registrations, of premium regions of Noida,” Singh told TOI.

“There is a need to increase the rate in these places to regularise it. Housing for the middle class and lower middle class has been kept out of the increase as we do not want to create additional burden on them,” the district magistrate added.

The district administration has been under tremendous pressure from homebuyers and builders to withdraw the draft proposal increasing circle rates in Noida by 14% (residential and corporate) and 6.5% (group housing) that it made public last week. Higher circle rate means more stamp duty for a buyer and higher capital gains tax for a seller.

Assistant inspector general (stamp and registration) Akhilesh Dubey echoed Singh. “In all, only about 5% of all allotted areas in Noida will be affected by the circle rate hike,” he said. The new rate is expected to be implemented from August 1.

Shweta Bharti, general secretary of the Noida Extension Flat Owners’ Association, said, “We received information that group housing areas like Noida Extension have been left out of the circle rate hike, so while we were initially preparing for a demonstration, we cancelled our plans.”

Source: http://realty.economictimes.indiatimes.com/news/regulatory/noida-may-hike-circle-rates-only-in-premium-areas/53390294

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