With stamp collections falling short of the target, the Ghaziabad Development Authority (GDA) has written to the Uttar Pradesh government recommending that circle rates be raised in the current financial year. These rates have remained unchanged since 2014 and analysts say that many more regions may follow suit.
The GDA’s request comes in the wake of a sharp shortfall in stamp duty collections for the fiscal year 2018-19. According to available data, while the Uttar Pradesh government had set a target of Rs 1,626 crore for the year, they have only managed to rake in around Rs 1,442 crore. Officials blame the shortfall on the ongoing slowdown in the real estate sector.
While the proposal had been received as early as April, the government has been waiting for the Lok Sabha elections to conclude. “One way of meeting the revenue target is to increase the circle rate. Last time the circle rate was changed was in 2014. We have already written to the authorities to allow us to increase the circle rate,” one of the officials from Ghaziabad Development Authority told this publication.
Last year, for an area between 1,000 square meter to 20,000 square meter, organisations had been offered rebates of about 30 per cent during the sale of the property, while land measuring more than 20,000 square meters were sold with a 40 per cent rebate. The state government had also abolished a 5 per cent discount on rainwater harvesting and instead made it compulsory.
The Ghaziabad authority is not the only development authority in the state seeking such a decision, with sources saying the Greater Noida Development Authority too is considering a similar move.