New circle rates for property in Delhi still need revision

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MADHU AGRAWAL

10 February, 2011

New circle-rates for property-deals in Delhi are still a small fraction of real prevailing market-rates despite their being doubled. Investment in property is amongst the most popular mode of consuming black money.

NEW CIRCLE-rates for property-deals in Delhi are still a small fraction of real prevailing market-rates despite their being doubled. Investment in property is amongst the most popular mode of consuming black money generated out of corruption. Otherwise also such lower-fixed circle-rates deprive exchequers from real revenue which could be generated if real price would have been declared for property-deals.

It is a known fact that increasing role of black money is root cause for plots and houses to be out of reach of common people. Governments should frame some practical criteria whereby circle-rates may be revised annually and too be in tune with actual market-value of land in different areas to avoid big role of black-money in land-deals. Maximum circle-rate of rupees 86000 per square meters now fixed in Delhi does not stand anywhere in colonies like Sunder Nagar where land-price is even more than ten times of this amount.

Since currency is the oxygen for all black-money deals, the best remedy is to induce harsh measures so that people may find excess currency as ordinary ‘paper’. Union government should follow sensible and advanced countries by discontinuing currency in high denominations of rupees 500 and 1000. Permanent provision of voluntarily disclosing unaccounted money on payment of income-tax at normal tax-slabs should be there in new-to-be implemented Direct Tax Code, so that such disclosure by seller of property may automatically make Income Tax Department detect those buying the property using black money!