Patna: The Bihar government is preparing to significantly increase the circle rate of land across the state, with a proposal expected to be placed before the cabinet in April. Officials said the registration department has nearly finalised the cabinet note, and the new government is likely to take the final decision on revising the rates.
The move is aimed at bringing greater transparency to land transactions and reducing revenue losses caused by the large gap between official rates and actual market prices. According to the proposal, circle rates in several cities could be raised by 80% to 400%, depending on the difference between existing government rates and prevailing market values.
Departmental sources said the proposal could not be presented earlier because of recent political developments in the state. It is now likely to be taken up once the new government convenes its cabinet meeting. Areas where the gap between the market price and circle rate is relatively small may see an increase of around 50%, while locations with a larger disparity could witness a much steeper rise.
A senior official from the Prohibition, Excise and Registration Department said the proposal had already been prepared but was temporarily postponed due to the political situation. The objective, the official added, is to bring the circle rate as close as possible to the real market value of land across the state.
At present, land transactions in many cities are taking place at prices 300% to 500% higher than the official circle rate, leading to significant losses in government revenue. Officials estimate that once the revised rates are implemented, the state’s annual revenue from land registration could increase from around Rs 7,600 crore to nearly Rs 16,000 crore.
To assess the situation, the registration department carried out a survey of actual land prices in several districts including Patna, Muzaffarpur, Gaya, Darbhanga, Purnia and Saran, along with divisional headquarters and more than 24 district headquarters. The survey found a substantial gap between market values and government rates, particularly in commercial zones, posh residential colonies and areas along major roads.
For instance, in Patna’s Boring Canal Road area, the current circle rate is about Rs 30 lakh per decimal, while real estate transactions are often taking place at far higher prices. Similar trends were observed in several other cities, reinforcing the need for a revision.
The process of revising circle rates follows several administrative steps. At the district level, meetings chaired by the district magistrate (DM) assess market prices before the district valuation committee prepares a proposal. Public objections and suggestions are then invited before the final report is sent to the Revenue and Land Reforms Department, which reviews the recommendations and prepares the cabinet note for approval.
