The Delhi government is on the verge of implementing a landmark policy change that could see the official valuation of agricultural land skyrocket. Authorities are actively considering a proposal to revise circle rates for such land upwards by as much as ten times. This move aims to bridge the vast gap that has emerged over nearly two decades between government-notified rates and the actual market prices, promising significant implications for state revenue and farmer welfare.
Why Such a Drastic Revision is Needed
This potential revision marks the first update to agricultural land circle rates in Delhi in 17 years. Currently frozen at Rs 53 lakh per acre, this official minimum value for property registration has become completely disconnected from ground reality. The relentless forces of urbanisation, infrastructure development, and soaring demand for land on the capital's outskirts have propelled market values far beyond this outdated benchmark.
This discrepancy has led to a common practice where property transactions are registered at the official circle rate but involve substantial additional, unrecorded payments. This practice, known as "black money" in transactions, results in substantial revenue loss for the government in terms of stamp duty and registration fees, which are calculated on the circle rate or the transaction value, whichever is higher.
The Push from Farmers and the Government's Process
The push for this hike isn't coming solely from the government's treasury department. Farmers and villagers from across Delhi have been actively lobbying for the increase. An official familiar with the development stated that the proposal for an up to 10 times increase is based on representations from these very stakeholders.
In May, the Delhi government constituted a dedicated committee to examine the revision of circle rates, including those for agricultural land. Since its formation, this committee has held multiple consultations with farmers and villagers from various parts of the city to gauge their perspectives and ground-level realities.
Villagers like Surender Solanki have been part of these efforts, meeting the head of the revenue department several times over the last three months. They have submitted a formal proposal demanding that circle rates be raised to Rs 10 crore per acre. Officials have assured them that their case will be presented to the government for consideration.
Expected Impact and Broader Context
The implications of this revision are twofold and substantial. Firstly, it is expected to provide a major boost to government revenue from stamp duty and registration charges, as the taxable base for property transactions will align more closely with real market values. Secondly, and crucially for landowners, it will ensure higher compensation for farmers when their land is acquired for public projects, as compensation is often linked to the notified circle rates.
The context of shrinking agricultural land in the capital adds urgency to the matter. Delhi's gross cropped area has dwindled to just 81,700 acres in 2023, as large tracts have been converted for non-agricultural uses. Political figures like South Delhi MP Ramvir Singh Bidhuri have also voiced strong support for the hike, arguing that the current rate is far too low and that a realistic rate around Rs 10 crore per acre is necessary to reflect true value and augment government income.
If approved, this revision will represent one of the most significant adjustments to Delhi's property valuation framework in recent history, with wide-ranging economic and social consequences.
