It also decided to waive a 3% charge levied on flat-owners under the ‘security’ component, which is among six overheads that are factored in during registry.
NOIDA: The Noida administration on Saturday approved an increase in circle rates but left flats out of its purview, a big relief for thousands of new homeowners who have just got possession of their homes or will receive it over the next few months.
It also decided to waive a 3% charge levied on flat-owners under the ‘security’ component, which is among six overheads that are factored in during registry, depending on which of the facilities a builder provides. The other components — club, community centre, lift, gymnasium and swimming pool — remain chargeable as usual.
From August 1, Noida will see circle rates in the residential category (plotted houses, or kothis) increase by 14%. There is no change in circle rates in the commercial and institutional categories or villages and rural areas. Circle rates have been revised in the Yamuna expressway region too. In Greater Noida, they have been left untouched.
District magistrate N P Singh said the development authorities in Noida, Greater Noida and Yamuna expressway region are not profit- making government bodies. “They revise land lease agreement annually based on the current market price. The administration is bound to revise circle rate, which corresponds with the rate of the Authorities,” he said. “We can’t keep the circle rate lower than the authorities’ land lease rate,” he added.
Noida was under pressure to reduce circle rates because they are higher than market rates in several areas. Circle rate is the minimum rate at which a property can be registered.
Singh said since there is no change in the circle rate for flats, most homebuyers will not be affected. “To benefit them, we have also waived additional duty on ‘security’ which was applied in Noida, Greater Noida and Yamuna expressway region,” he said.
However, plot buyers feel the revised circle rate will dissuade others from investing in properties.
Rajesh Kumar Yadav, ADM (finance and revenue) Gautam Budh Nagar, said that the revised circle rate will come into effect from August 1.