Circle Rate Increase Looms in Noida and Greater Noida

The circle rate in the district has been stagnant for the last few years. Accordingly, to address this issue, the district administration has sought a report from the Noida, Greater Noida, and Yamuna Authorities to know their land allotment rates and the compensation rates paid to the farmers. It is expected that this report should be out in one to two days from now. After receiving it, a meeting will be held to deliberate on the new draft of the circle rate, and the process will go forth accordingly. 

Urgent Registration for Flat Buyers

Residents in high-rise societies in Noida or Greater Noida who have received the NOC but have not yet registered their flats are advised to do so at the earliest. The district administration is set to introduce an increment in the circle rate in Noida and Greater Noida within the next one and a half to two months, based on which the circle rate is expected to go up by approximately 20–25%. This impending increase will also raise the stamp duty of flat registration, meaning higher costs for buyers.

Historical Context of Circle Rate Adjustments

The last change to the circle rate was carried out in 2015. Although the district administration prepared a proposal in 2022 to bring down the rates to the market values of the three authorities, it faced considerable opposition. 

The proposal indicated hikes of up to 75% in some areas, which the government rejected at assembly level, especially with regard to the 2022 elections. But the present district administration has carried out ground-level surveys indicating the possibility of increase in circle rates this time.

Future Prospects for Flat Registration

The Amitabh Kant policy has paved the way for the registration of about 63,000 flat buyers in the regions controlled by Noida, Greater Noida, and Yamuna Authorities in the coming year. After many years, there is a record of approximately 7,000 new flats registered since April of this year. 

However, this increase in registration will be accompanied by increasing costs. For instance, a flat of 1000 sq. ft. with the circle rate of ₹ 6,000 shall have a new stamp duty charge of ₹ 300,000. The circle rate is a major factor in determining the stamp duty; if the circle rate rises by 25%, then this expense would increase by ₹75,000.

Implications for Farmers and Land Acquisition

The three authorities in the district are also under pressure to increase their land bank. The district administration pays compensation to farmers at a rate that is two times the circle rate for the land. Farmers have been seeking an increase in this compensation rate for several years now. 

Therefore, in light of the impending registrations of flat buyers, the circle rate is expected to go up to be able to correspond with the compensation given to farmers via the stamp revenue that will be collected from the registration of the flats. As the farmers are not willing to sell their land at the current rates, the hike in the circle rate seems inevitable. Therefore, it is highly recommended that flat buyers in Noida and Greater Noida should register their properties at the earliest to minimise their losses due to the expected increase of circle rates.