The Delhi government increased the circle rates by as much as three times for the more affluent parts of the city on Wednesday. Other areas registered a 22 per cent increase in circle rates — or the minimum price at which a property can be sold.

The rates for city’s eight categories of colonies last increased in November, 2011 .

Circle rate in the affluent colonies under Category A went up from Rs 2.15 lakh per sqm to Rs 6.45 lakh per sqm.

Chief Minister Sheila Dikshit said despite the increase, last year’s circle rates were still lesser than the prevailing market rates and had to be rationalised.

“Transactions were being registered at a price much less than the market rates. In order to curb the flow of black money, it had become imminent to rationalise the minimum circle rates,” she said.

The revised circle rates will be enforced once the Lieutenant-Governor approves the increase cleared by the Cabinet on Wednesday.

Circle rates in Category B colonies were revised from Rs 1,36,400 per sqm to Rs 2,04,600 per sqm — the second highest increase in this round of hike.

The rates for all the other six categories of colonies were hiked by around 22 per cent, a marginal increase that the government said was done taking a “sympathetic view”.

“The colonies coming under Category A are affluent colonies. The families in category B colonies are also well-to-do,” a statement from Dikshit’s office read.

The government introduced circle rates in 2007 after it found people were under-reporting the sale price in property transactions to avoid paying taxes that are calculated on the sale price. The rates were revised in February 2011 and November 2011. Even after that increase, the circle rates were less than half the prevailing market rates in several areas and even less by a third in a few.

A government official said despite the increase on Wednesday, circle rates in Delhi are still lower than in neighbouring Noida, Gurgaon and Faridabad.

“Moreover, circle rates in these towns are revised frequently, at an interval of five to six months. Rates in Delhi continue to remain the lowest,” the official said.

The Revenue department had last month said the revision was proposed in accordance with market price of property in the city.