Patna: The Government of Bihar has approved a significant revision in the Minimum Value Register (MVR), aiming to align official land valuation with current market prices and increase compensation for landowners in acquisition cases.
According to a press release issued by the Department of Prohibition, Excise and Registration, the MVR had not been updated since 2013 in rural areas and 2016 in urban regions, despite substantial growth in real estate prices.
Revised MVR Structure
Under the new framework, MVR rates have been increased to 1.6 times in rural areas and up to 2 times in urban and peripheral regions, with immediate effect. The government has also introduced an automatic 5% annual escalation and a mandatory three-year comprehensive review cycle.
The review process will factor in infrastructure expansion, including new roads, industrial zones, airports, rail networks, irrigation projects and urban growth corridors.
Impact on Compensation
The revised valuation is expected to substantially increase compensation payouts in land acquisition projects.
For state government projects, compensation is estimated to rise from Rs 14,897 crore to Rs 18,637 crore, an increase of Rs 3,740 crore.
For central government-linked projects, compensation is projected to increase from Rs 24,629 crore to Rs 39,460 crore, resulting in an additional Rs 14,831 crore for landowners.
Officials said the move is designed to ensure “fair and higher compensation” for farmers and improve rural income levels while supporting development projects.
Changes in Stamp Duty Concessions
In a parallel reform, the state has increased stamp duty concession for property registered in women’s names from 0.3% to 0.4%, while retaining the existing 0.1% rebate on registration fees. This raises the total concession to 0.5%, aimed at promoting women’s property ownership.
At the same time, the general stamp duty rate has been increased by 1%, a step expected to enhance state revenue for infrastructure and development works.
Land Category Rationalisation
The government has also standardised land classification systems across districts, introducing seven categories for rural and peripheral areas and six categories for urban and metropolitan zones to ensure uniform valuation practices across the state.
