UP govt to do away with circle rate discrepancies

Uniform guidelines to pave way for revision of circle rates in two dozen districts where rates have remained stagnant for two years or more

LUCKNOW In a first, the Uttar Pradesh government is set to introduce standard guidelines to address discrepancies in property circle rates fixed and revised by district magistrates (DMs) from time to time across all 75 districts.

The move aims to bring uniformity and transparency to the process, which has often been criticised for inconsistencies hampering investment in the state and depriving many farmers and other sellers of a fair value of their property. (Pic for representation)

The move aims to bring uniformity and transparency to the process, which has often been criticised for inconsistencies hampering investment in the state and depriving many farmers and other sellers of a fair value of their property.

The guidelines would also pave way for revising circle rates in districts where rates have remained stagnant for two years or more. This revision will align the rates with prevailing market values, ensuring fairer assessments of property values in both urban and rural areas, said officials.

Chief minister Yogi Adityanath chaired a high-level meeting on Monday to discuss the issue. He directed officials to first identify and eliminate discrepancies in the existing circle rates before initiating any increase. Uniformity in circle rates, he stressed, was essential for equitable property valuation.

This step is expected to impact property transactions across the state, providing clarity for buyers and sellers while also boosting revenue for the government. The exercise is part of a broader strategy to modernize and streamline property-related processes in UP.

Circle rates are the government-notified minimum prices at which properties can be registered during a transaction. They are used to calculate stamp duty and registration fees while market rates are the actual prices at which properties are bought and sold in the real estate market, often higher than the circle rates.

“The CM has asked us to eliminate discrepancies in the circle rates in different districts before the circle rates are revised in districts where revision is overdue,” additional inspector-general, stamps and registration, Ashish Kumar said.

Another official said in many districts there was huge difference in the circles rates of the land on the border of two districts. “For example, the land falling in Lucknow district on the Lucknow-Barabanki border may have much higher circle rates than the land falling in Barabanki district on the same border, all other factors being similar.”

Similarly, within the same city also, the circle rates vary widely depending on the location of the plot/land, like the corner plot having higher circle rates.

“Besides, there are around two dozen districts where the circle rates have not been revised for more than two years, widening the gap between the market price and the circle rates,” the official said. “In Lucknow, for example, the circle rates have been stagnant for last 7-8 years,” he added.

Apart from Lucknow, the districts where circle rates have not been revised for more than two years include Varanasi, Prayagraj, Gautam Buddha Nagar, Agra, Aligarh, Bulandshahr, Kushinagar, Shamli, Gorakhpur, Jhansi, Balrampur, Maharajganj, Shrawasti, Muzaffarnagar, Hapur, Kaushambi, Chitrakoot, Baghpat, Jalaun, Kannuaj and Meerut.

The revision of circle rates is under process in a dozen other districts. These are Bahraich, Mainpuri, Banda, Badaun, Mirzapur, Etah, Hardoi, Kasganj, Hamirpur, Etawah, Ayodhya, Sultanpur and Sant Kabir Nagar.

The government is soon expected to issue standard guidelines and criteria for the revision of circle rates by DMs.

“While DMs will continue to fix circle rates, they will have to do the same considering the criteria fixed by the government to prevent any distortions and discrepancies in circle rates among districts or within the same districts/cities,” the official said.