The circle rate in Ayodhya, where land transactions have surged since the Supreme Court’s 2019 verdict allowing the Ram temple, has not been revised for almost seven years. It’s one of the 54 districts of the state where the last revision happened in 2017. Circle rate is the district administration’s assessment of land value in its jurisdiction, based on which stamp duty is charged on each sale or purchase, and based on which the administration acquires property from land owners, including farmers. The District Magistrate considers the case for a revision every year. In fact, one of the farmers, Durga Prasad Yadav, had sought a hike in circle rate and approached the Lucknow bench of the Allahabad High Court on October 5, 2021. Yadav’s contention is that farmers get lower compensation whenever the government acquires land since the cost of acquisition is based on the circle rate. In UP, the government pays twice the circle rate in urban areas, and four times the circle rate in rural areas. Responding to his petition, the Uttar Pradesh government had, in an affidavit submitted to the court on May 18, 2022, said that the “exercise for considering the revision of rates in Ayodhya was undertaken by the authorities in 2018, 2019, 2020 and 2021, but during the aforesaid period the market rates of value of land remained equivalent to that of year 2017 and therefore there was no change in the Circle Rate.” When contacted, UP Inspector General (Stamp and Registration), Roopesh Kumar, told The Indian Express, “In 2022 and 2023, it was proposed to revise circle rates (in Ayodhya), but was not approved by the government. In 54 districts (out of total 75 districts) of the state, circle rates have not been revised since 2017.” According to Roopesh Kumar, circle rates were revised in 21 districts in 2023. They were also revised in districts adjoining Ayodhya. “For example, in Barabanki, it was revised on January 25, 2024, in Ambedkar Nagar, Gonda and Basti from 2023, and in Sultanpur from 2022,” he said. Justifying non-revision in circle rates, Roopesh Kumar said, in 80 per cent of the registration documents submitted by purchasers to the department, the market rate is seen to be less than the circle rate. “In February alone, the actual collection of stamp fees in Ayodhya was Rs 28.38 crore, 131 per cent more than the target of Rs 21.58 crore,” he said. Government sources told The Indian Express that revision of circle rates is usually held up if the state proposes to acquire land in that region to avoid higher compensation. For example, in Ayodhya, they said, the UP Housing Development Board (UP Awas Vikas Parishad) has acquired several parcels of land. When contacted, Om Prakash Pandey, who recently retired as executive engineer, UPAVP, said, “Of a total of around 1,800 acres for a township proposed in 2022, we acquired nearly 600 acres till March in Shahnawaz Pur Majha, Barata Majha and Tihura Majha. The remaining acquisition is in process.” 👉 Follow The Indian Express's full coverage on the Ayodhya land deals
