New Delhi, Feb 5 (IANS): The Delhi Government on Friday announced a 20% reduction in the current circle rates on properties by a 20% in the national capital. According to information received from the Delhi government, a decision in this regard has been taken in a cabinet meeting chaired by Chief Minister Arvind Kejriwal on Friday.

"The proposal of reducing the circle rates of residential, commercial, industrial and other properties in Delhi by 20% for the next six months was approved. A reduction of 20% in the circle rate would have an impact close to reduction by 1% in the stamp duty or registration charges. The department was directed to do an exercise accordingly," the Delhi Chief Minister stated in an official statement issued by his office.

The AAP-led Delhi government said the revised rates will be applicable till September 30 this year. It also said the reduction in circle rates will help people in substantially cheaper property transactions and revive the real estate sector that has witnessed slump due to the unprecedented Covid-19 pandemic.

Other Delhi Cabinet Ministers too have supported the move. Deputy CM Manish Sisodia said on Twitter, "A big decision by Hon'ble CM Arvind Kejriwal. Circle Rates of Residential/Commercial/Industrial Properties in Delhi reduced by 20% across all categories for the next 6 months. This would be a big relief for people willing to buy the property and a big boost up for the Real estate sector."

While, Delhi Revenue Minister Kailash Gahlot said, "We are facing tough times, and as an accountable Government, we understand it is our duty to give maximum impetus to ensure the economy bounces back. This would require infrastructure, which is our biggest immovable asset, to pick pace. This reduction in Circle rates is a welcome step. I hope this encourages more people to transact in real estate and avoid the stagnancy that would otherwise have occurred."