Kolkata homebuyers have received a measure of relief following a rationalisation of circle rates in several localities across the city, including Salt Lake and New Town. The decision by the state government comes after a recent 80%-90% revision of circle rates in these areas had sharply increased the financial burden on property buyers, particularly in terms of stamp duty and registration fees.
Circle rates, also referred to as IGR (Inspector General of Registration) rates, are the minimum property prices set by the government for the purpose of registration during the sale and purchase of real estate. These rates play a significant role in determining the stamp duty and registration fee payable by the buyer. The recent surge in circle rates had sparked concerns among real estate developers, trade bodies, and homeowners, as the revised figures in some areas far exceeded prevailing market rates.
The rationalisation came after representations from real estate trade associations, particularly the West Bengal chapter of the Confederation of Real Estate Developers Association of India (Credai). Developers highlighted anomalies in the recently revised rate structure, noting that some rates were considerably higher than actual market prices. This prompted discussions with the state finance department and the registration authorities to reassess the rate adjustments.
Earlier, Credai had approached the Inspector General of Registrations (IGR) to amend the system requiring the super built-up area to be mentioned in sale documents, a stipulation not fully aligned with the Real Estate (Regulation and Development) Act (RERA), 2016. While authorities addressed this procedural requirement, they simultaneously revised circle rates upwards in several localities, resulting in hikes ranging from 80% to 90%. The subsequent rationalisation now brings these rates down to more manageable levels, easing the financial impact on buyers.
For example, in Bonhooghly on BT Road, where several high-rise residential projects have emerged, the earlier upward revision of 88% has been rationalised to 53%. Similarly, in Mahishbathan on the outskirts of Salt Lake, rates revised by 87% have now been brought down to a 54% increase. Other localities, including the Southern Bypass, Behala Sarsuna, and New Town, have also witnessed comparable rationalisations, although areas such as Tollygunge Siriti, Mahavirtala, and BL Saha Road did not see any changes.
In absolute terms, Mahishbathan experienced one of the largest reductions, with the rationalised rate decreasing by Rs 3,463 per square foot from the previous revision. Topsia saw a reduction of Rs 2,814 per square foot, Bonhooghly BT Road by Rs 2,475 per square foot, and Behala Sarsuna by Rs 2,001 per square foot. Such adjustments are expected to bring the circle rates closer to actual market prices and reduce the financial burden on homebuyers.
Credai Bengal president Sushil Mohta noted that the association has consistently supported fair practices in real estate, including accurate property valuations, while opposing black money transactions. He emphasised that as long as circle rates align with or are close to market rates, the valuations are acceptable. However, he pointed out that certain areas still have IGR rates significantly higher than actual land prices and pledged to continue discussions with authorities to address these discrepancies.
This rationalisation is likely to benefit buyers who had been concerned about the impact of inflated circle rates on registration costs and overall property expenses. It also provides clarity and stability to developers and property owners regarding property valuations in key residential and commercial hubs. By addressing the concerns raised by trade bodies and aligning government-mandated rates more closely with market realities, the state aims to create a more balanced and transparent real estate environment in Kolkata and its neighbouring localities.
.png)