Builder Asking More Than Circle Rate? Here’s Where You Can Complain
Buying a new home is one of the biggest financial decisions for any family. But sometimes builders demand charges that go beyond the official circle rate (the minimum property value set by state governments for stamp duty). To protect buyers from such unfair practices, the government has put checks in place under the Real Estate (Regulation and Development) Act, 2016 (RERA). Here’s what you need to know.1️⃣ What Is the Circle Rate? 💰
Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
- The circle rate (also called ready reckoner rate or guideline value) is the minimum price per square foot at which a property can be registered.
- Builders cannot legally sell property below this rate, but also cannot overcharge arbitrarily without justification.
- Cash payments over the circle rate,
- Hidden charges for “premium location” or “preferred floor,”
- Unapproved development costs.
- Approach the State RERA Authority: Every state has its own RERA website where buyers can file online complaints.
- Consumer Forum: File a case under the Consumer Protection Act for deficiency of service.
- State Housing Regulator: Some states have dedicated housing grievance cells.
- Police/Economic Offences Wing (EOW): In cases of fraud, a criminal complaint can be lodged.
- Mandatory Registration: Builders must register projects with RERA.
- Transparent Pricing: Charges must be based on carpet area, not super built-up tricks.
- Timely Delivery: Builders data-face penalties for delays.
- Dispute Resolution: Quick settlement of buyer complaints through RERA tribunals.
- Buyers enjoy legal recourse against unfair pricing.
- Transparency in real estate transactions has improved.
- Overcharging practices are being curbed, giving buyers better value for money.
Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.