New Delhi, June 17 -- In many Indian cities today, property prices and official circle rates are no longer moving in tandem. In some premium micro-markets, homes are being sold at prices far above government-notified valuations, while in slower markets, circle rates often remain higher than prevailing transaction prices.

Circle rates are the minimum values set by state governments for property registration. They help prevent undervaluation and ensure proper stamp duty collection.

But for most homebuyers, the gap between these rates and actual market prices only becomes visible when the loan process begins. By then, the consequences may already have surfaced in the form of higher upfront payments, unexpected tax liabilities or a financin...