KOLKATA: The state government has revised the circle rates in various localities in Kolkata, including Salt Lake and New Town, addressing concerns that recent increases of 80%-90% significantly raised the financial burden of stamp duty and registration fees for homebuyers.
According to insiders from the directorate of registration and stamp revenue in the finance department, this adjustment of the circle rate—which establishes the minimum property price for official sale and purchase registration—was made in response to appeals from organizations such as the West Bengal chapter of the Confederation of Real Estate Developers Association of India (Credai). They pointed out discrepancies in certain areas, where new rates were considerably higher than prevailing market prices.
The initial circle rate hike came after Credai engaged with the Inspector General of Registrations (IGR) in West Bengal, seeking changes to a rule that required the super built-up area to be included in sales documents, which conflicted with the Real Estate (Regulation and Development) Act, 2016.
“After Credai’s plea for reconsideration, authorities agreed to remove the requirement for mentioning the super built-up area. While this amendment was made, circle rates were raised by as much as 80%-90% across various properties in Bengal. Once again, Credai reached out to the IGR and state finance department, and we are pleased that the rates have now been adjusted to a more reasonable level,” stated Sushil Mohta, President of Credai Bengal.
In Bonhooghly along BT Road, the increase was adjusted from 88% to 53%. For Mahishbathan near Salt Lake, the previously revised rate of 87% has been reduced to 54%. Similarly, in Southern Bypass, a revision of 83% has been adjusted to a 52% increase. Other areas, such as Behala Sarsuna and New Town, have also seen similar revisions. However, places like Tollygunge Siriti, Mahavirtala, and BL Saha Road have not undergone any adjustments.
Among the locations with the most significant absolute reductions is Mahishbathan, with a revised rate dropping Rs 3,463/sq ft, followed by Topsia at Rs 2,814/sq ft, Bonhooghly BT Road at Rs 2,475/sq ft, and Behala Sarsuna at Rs 2,001/sq ft.
Mohta emphasized that Credai supports fair practices, including accurate valuations for deeds, and opposes any form of black money transactions in the real estate sector. “As long as the valuations set by the authorities align closely with market rates, we support them. Generally, construction rates reflect market levels; however, some areas show significant disparity between IGR circle rates and market prices, which we will address with the authorities,” he added.
