Government of Delhi issued a fresh directive to the revenue department asking it to allow sale and purchase of immovable properties only through proper sale and not allow any such transactions by way of General Power of Attorney.
The direction issued by Divisional Commissioner Vijay Dev came as registration of properties at 13 sub-registrar offices across the city had slowed down drastically due to confusion on the issue following issuance of an advisory last month by the government clamping down on property transaction through GPA. “In today’s direction, the government has asked all concerned officials to strictly comply with the Supreme Court order on the issue. The order has been issued to remove the confusion,” said an official.
The government had put restrictions on GPA as a mode of property transfer following the apex court order on October 12 last year but such transactions had been taking place despite the order, prompting the government to issue the advisory. Following the advisory, registration of properties has come down at the sub-registrar offices.
The Supreme Court had on October 12 last year ruled that sale transactions carried out in the name of GPA will have no legal sanctity and immovable property can be sold or transferred only through registered deeds.
Metro connectivity and property rates in the capital goes hand in hand , its just like they run on parallel tracks as right from the announcement of new metro connections , property rates follows an upward swing.
With Delhi metro gearing up for the Phase III construction that will cover areas like Vasant Vihar, Dhaula Kuan, Munirka , Kalka Ji , lajpat Nagar , Botonical Garden (Noida) , real estate prices are expected to see a major rise in the prices. Metro certainly affectes real estate as it is a major factor to provide a safe and comfortable mode of transport. People prefers homes situated near the metro stations. How ever since the prices have already increased so much that it will be difficult to say how much impact the new lines will have now. Consultants further says that properties which are located near the Metro stations will have the maximum increase in the real estate price.
The entire scenario can be explained in terms of a U curve where in right from the announcement of the projects the price tends to go upwards and then it declines when the construction is underway and again goes up when the project is complete. On an average , a property may see 20-30% increase in price over three years. Proximity to the station may also effects an increase of 35-40%. Due to increase in the rates of properties which are near to Metro stations , the Municipal Valuation committee constituted by Delhi Government has also adviced that the residential colonies within half a KM radius of Metro line would be upgraded by one level since they have witnessed the maximum amount of Infrastructure development.
The decision made by Delhi government in concern with increasing the circle rates has encouraged the Municipal Corporation of Delhi which thus, now plans to revise its property tax rates upward.
According to some experts, the impact of the increase in circle rates would be in the ratio 2:1, i.e. , with the increase of 200% in the circle rates, there will be a hike of 100% in the property taxes.
However, where the circle rate increase is not very steep, the revision in property tax could be lower.
The property taxes in Delhi are based on the unit area. The circle rates are fixed at a higher rate because of the cost of property in the posh areas which is quite high.