Revised norms address landowner concerns over low circle rate compensation
The Indian real estate market has been facing a major challenge in recent years – the issue of low circle rate compensation for landowners. Circle rate, also known as the guideline value or ready reckoner rate, is the minimum price at which a property can be bought or sold in a particular area. It is determined by the state government and is used to calculate stamp duty and registration charges for property transactions. However, in many cases, the circle rate does not reflect the actual market value of the property, resulting in landowners receiving inadequate compensation for their land.
This issue has been a cause of distress for landowners, especially in areas where the real estate market is booming. Many landowners have been forced to sell their land at a much lower price than its actual value, leading to financial losses and dissatisfaction. In some cases, land acquisition for development projects has also been delayed due to disputes over circle rate compensation. Realizing the gravity of the situation, the government has taken a significant step towards addressing this issue by revising the norms for circle rate calculation.
The Ministry of Housing and Urban Affairs has recently issued a notification stating that the circle rate for land acquisition will now be calculated based on the average of the last three years’ registered sale deeds in the area. This move is expected to bring relief to landowners and ensure that they receive fair compensation for their land. The new norms will be applicable to all land acquisition cases, including those under the Land Acquisition Act, 2013, and the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
The decision to revise the circle rate calculation norms is a welcome move for both landowners and the real estate sector. It will not only address the concerns of landowners but also boost the confidence of investors and developers in the market. The previous method of calculating circle rate, which was based on the collector’s rate, often resulted in a huge gap between the actual market value and the circle rate. This led to disputes and delays in land acquisition, which ultimately affected the development of projects and the overall growth of the real estate sector.
The new norms will also bring transparency and fairness to the process of land acquisition. By considering the average of the last three years’ registered sale deeds, the circle rate will now be more reflective of the actual market value of the land. This will not only benefit landowners but also ensure that developers pay the right amount for land acquisition, avoiding any legal disputes in the future.
Moreover, the revised norms will also have a positive impact on the government’s revenue collection. With the circle rate now being more in line with the market value, the stamp duty and registration charges will also increase, resulting in higher revenue for the government. This will enable the government to invest in infrastructure development and other public welfare projects, ultimately benefiting the society as a whole.
The real estate sector, which has been struggling with the impact of the pandemic, will also benefit from this decision. The revised norms will bring more clarity and stability to the market, making it more attractive for investors and developers. It will also boost the confidence of homebuyers, who have been hesitant to invest in properties due to the uncertainty surrounding circle rates.
In conclusion, the government’s decision to revise the norms for circle rate calculation is a significant step towards addressing the concerns of landowners and bringing fairness to the process of land acquisition. It will not only benefit landowners but also boost the real estate sector and contribute to the country’s economic growth. With this positive development, we can hope for a more transparent and efficient real estate market in the future.
