Delhi govt hikes minimum property rates by up to 250%

NEW DELHI : For the second time this year, the Delhi government announced a steep hike in circle rates in a bid to garner more revenue and check the use of black money in property transactions.

Circle rates are the government's valuation of land in the city - differentiated into eight categories, A to H - below which a realty deal cannot be registered. After doubling the circle rates in February this year, the government on Monday further revised the rates with a hike in the range of 15% to 250%. The new circle rate regime is unlikely to affect real estate prices in the city. If anything, the hike may result in a price correction in certain areas as the black money component in property deals comes down. Property analysts said even the revised rates were much below real property values in the city.

The city government expects the revised rates to bring in additional revenue to the tune of Rs 800 crore annually.

Chief minister Sheila Dikshit said the revision was an attempt to bring circle rates closer to real property prices, although these were still lower than market values in many posh colonies. According to senior revenue department officials, in most cases , the actual rates of properties are not shown on paper due to which the government suffers loss in revenue in stamp duty and registration fees.

Impact of circle rates
NEW DELHI: With Delhi government hiking thecircle rates substantially on Monday, the city's realty market is expected to be impacted somewhat. It's going to be a two-pronged impact, say property experts. While the "white" component of the transaction will be going up as circle rates try to catch up with the grossly deflated market prices, the good news is that more genuine buyers are now expected to enter the market with financers taking a backseat.
Said real estate analyst Pradeep Mishra: "The reason for the impact on the property prices is that the component of the price that was white, comprising the stamp duty that was usually undervalued, will now go up." It's not going to be a huge jump though, say experts, despite the staggering 250 per cent hike in circle rates of upmarket colonies in Category A. Said Harish Sabharwal, a Mayur Vihar broker: "The circle rates are finally becoming more realistic, reflective of the market. Since this means that the stamp duty is going up, there will be a short-term impact." The hike will be passed on to the buyer, who will bear the additional load, said experts. Both Mishra and Sabharwal, however, feel the impact will be absorbed in the next few months. "Transactions will be affected only for a couple of months and then it'll go back to normal. The increase will also be absorbed," added Mishra.
In fact, properties in the region of more than a crore may see a rate correction, feel market watchers. That is because of the larger role of genuine buyers in this market. "With the revision in circle rates, the financier will not invest as heavily now. There are several reasons for this, like the stricter general power of attorney norms as well as higher stamp duty. The financier's profit margin is smaller in this scenario," added GP Tiwari (name changed), who invests in real estate. The impact of financiers taking a backseat, added Mishra, will be felt the most in properties in the range of Rs 1.5-2 crore and above. "A 5-10 per cent rate correction may happen in this category of properties," said Mishra.
In a market already impacted by rising interest rates, the hike in circle rates will play spoilsport, rue most industry watchers. "While Delhi's circle rates are comparatively lower than that of the other NCR areas, it's a substantial hike - between 100-250 per cent in all the upmarket colonies. Even the G and H category will have a 15 per cent increase. Property rates will obviously be affected," added Sabharwal. The hike however, is expected to be beneficial in the long run, as it will check transactions in black money and undervaluation of property, add experts.

Quest for greener pastures leaves 8,000 Indians stranded in Iraq

Chandigarh, October 31
Eight thousand Indians, who took the flight to disaster in search of greener pastures abroad but lost their bearings and landed themselves in trouble in Iraq, are yet to find their way back to where they belong. And it’s not just torn passports and zero finances that are preventing so many of them from leaving behind the life of danger and drudgery. 
They are just not willing to take the flight to safety after bidding adieu to the perilous process of clearing landmines in a country suffering from the pitiable aftermath of a bloody war, as they have sold off their fertile agricultural land and raised loans back home that are to be paid off.
Among 60 Indians breathing the air of safety and freedom after return to India following the Punjab and Haryana High Court’s active intervention is Zoravar of Bhatalian village in Hoshiarpur.
He has brought back along with him from Iraq a bagful of sordid memories and tales of sorrow and pain. At Chandigarh Judicial Academy Sector-43 this morning, Zoravar said return was no option for at least some of the 8,000 left behind.
“They have raised loans and sold off their land. So many others just do not have money to buy back their freedom from a life of constant hazard. How can they come back?” Zoravar questions.
In a voice choking with deep emotion, Zoravar shudders as he says Indians back in Iraq have AK-47s pointed at them and their passports torn by ruthless strangers, who insist it’s easy to come, and very difficult, rather impossible, to return.
Nearly 21 others at the judicial academy have almost the same tale to narrate. They say the dreams of the Indians there come crashing down as soon as they find themselves in an alien land among a set of people they are not familiar to. They are pushed around, manhandled, beaten and have food literally thrown at them. They have to digest insult in case of refusal to eat impalpable foodstuff.
To make matters worse, they were offered $300 against the promised amount of $1,200 - that too is often not paid. And they are sold off like slaves.
Ripal Kumar of Khojpur in Jalandhar district says he did manage to escape from desolation and the lurking feeling of constant danger to join a furniture firm. But there too, it was a tryst with inhuman attitude.
Zoravar and Ripal Kumar are now among 13 para-legal volunteers all set to work at the district level in tandem with the Legal Services Authority under the guidance of Acting Chief Justice of the Punjab and Haryana High Court, Justice MM Kumar.
Proudly displaying the newly issued identity cards, they say: “One’s identity is in one’s own country. Be the master of your own destiny in your country, instead of being just another faceless slave.” 

Six booked for immigration fraud

Zirakpur, October 31
Three persons have been duped of lakhs of rupees by a local consultant on the pretext of sending them to Singapore on work permit.
The police has registered a case against six persons of Mappel Consultant Company on the complaint of Santosh Singh, Surinder Singh and Deepinder Singh, all residents of Rajasthan.
The accused have been identified as Mahinder Sharma, Ramesh, Puja, Nitish and Vijender Kumar. In their complaint to the police, the complainants alleged that they were lured by advertisements published in various newspapers by the accused. The complainants stated that they had given Rs 5,000 and Rs 7,000, but the consultant officials had asked them to give Rs 35,000 more.
Zirakpur SHO Yogi Raj said they had received several complaints in this regard.
He added that the accused had given advertisements in Rajasthan and Delhi-based newspapers and most of the victims belonged to Rajasthan and Delhi. 

HC: Decide ‘preferably’ within two months

Govt accommodation for District, Divisional Town Planners
Chandigarh, October 31
The Punjab and Haryana High Court has asked the Adviser to the UT Administrator to decide ‘preferably’ within two months the issue of providing a District Town Planner and a Divisional Town Planner government accommodation akin to architects and executive engineers.
The deadline was set by the Bench of acting Chief Justice MM Kumar and Justice Rajiv Narain Raina on a petition filed by Pankaj Bawa and another petitioner against the UT and another respondent. The directions came after senior standing counsel for UT Sanjay Kaushal accepted the notice on the asking of the court.
The Bench observed, “The petitioners, who are working as District Town Planner and Divisional Town Planner, have approached this court with a prayer that they be considered for allotment of government accommodation similar to architect and executive engineer because they are drawing the same pay scale.
“In that regard, reference has been made to the amendment dated August 20, 2010, carried in the Government Residences (Chandigarh Administration General Pool) Allotment Rules, 1996, where the post of architect was added for allotment of house in category IX (old).
“To that effect, the petitioner has already sent a representation to the respondents on August 20, 2010, which is still pending with the Adviser to the Administrator, Union Territory, Chandigarh.”
Before parting with the order, the Bench further added, “Keeping in view the nature of the prayer made, we are of the opinion that it will be appropriate to issue directions to the Adviser to the Administrator to take cognisance of the representation and decide the same expeditiously, preferably within a period of two months, by passing a speaking order. The writ petition stands disposed of with the aforesaid directions.”

HC stays demolition of ancient monument

Chandigarh, October 31
Issuing notice of motion for November 8, the Punjab and Haryana High Court today stayed the alleged demolition of a 300-year-old mound in the complex of Fatehgarh Sahib gurdwara.
The directions by the Bench of Acting Chief Justice MM Kumar and Justice Rajiv Narain Raina came on a petition filed by Chandigarh-based advocate Tekwinder Singh. Seeking issuance of directions to immediately stop the destruction of the ancient monument of religious and architectural significance, he contended it was existing as ruins of Shahi Quila, Sirhind, which was destroyed by Baba Banda Singh Bahadur in 1710.

HC: Courts can’t dictate to states on recruitments

Chandigarh, October 31
Refusing to direct the State of Punjab to fill the vacancies of PCS (executive) and other officers, the Punjab and Haryana High Court has made it clear that the courts cannot ask the States to hire or carry out recruitment process at regular intervals.
The ruling by the Bench of Acting Chief Justice MM Kumar and Justice Rajiv Narain Raina came on a petition filed by Karam Singh against the State of Punjab and other respondents.
In his petition, Karam Singh had earlier sought issuance of directions to the State of Punjab “to make regular recruitment to posts like PCS (Executive), as is being done by the Union Public Service Commission and other neighbouring States”.
Appearing for the petitioner, senior advocate Anmol Rattan Sidhu had placed reliance on Articles 38 and 39 of the Constitution and argued that the policy of the State should be directed towards securing the citizens' right to adequate means of livelihood and also to secure a social order for promotion and welfare of the people. The Bench observed: “It may be true that in the State of Punjab, the posts of PCS (Executive) and allied services are not being filled, but there may be numerous reasons for not doing so.”
The Bench added: “Firstly, the directive principles of State Policy in Articles 38 & 39 (A) are not enforceable, as they are guidelines for the State to frame its policy to achieve the aforesaid goal. Secondly, the right to adequate means of livelihood would not be fulfilled by filling the post of PCS (Executive), as there are large number of other posts in the State which are also required to be filled.”
12 IPS posts vacant: DGP 
Hoshiarpur: There is a shortage of about 12 Indian Police Services officers in Punjab. And the state government had already written in this regard to the Union Home Ministry, DGP Anil Kaushik said this here on Monday. Kaushik, who was at the Police Recruits Training Centre in Jahan Khelan, 8 km from here, said 5,000 new constables were being recruited. — OC