Bihar government raises circle rates, making land and flats costlier

Patna: Purchasing land and houses in Bihar has become more expensive following the state government's decision to increase registration rates for land and properties in both rural and urban areas. The revised rates were announced on Thursday and have taken immediate effect.

Under the updated minimum value register (MVR), commonly referred to as circle rates, the cost of rural land has risen by 60%, while urban land rates have been doubled. Additionally, the government has introduced an automatic annual increase of 5% in MVR rates. This marks the first revision of rural land rates since 2013 and urban rates since 2016.

The prohibition, excise, and registration department has stated that a comprehensive review of these rates will now occur every three years. This review will consider factors such as the development of new roads, industrial zones, urban expansion, and major infrastructure projects like airports, railways, industrial parks, and irrigation schemes. The revised rates are expected to benefit farmers by providing higher compensation for land acquisitions. Women will also gain from enhanced concessions on property registration.

For properties registered in a woman's name through a sale deed or gift deed, the concession on stamp duty has been increased from 0.3% to 0.4%. The existing 0.1% concession on registration fees remains unchanged, bringing the total concession available to women to 0.5%.