Ayodhya land value soars, circle rates hiked up to 200% - sharpest rise near Janmabhoomi

Ram Temple in Ayodhya

After almost eight years, the circle rates of land in Ayodhya have been increased by up to 200 per cent, depending on the location and how the land is used. This comes after the Ram Temple was inaugurated in the city last year.

Although the new rates were officially implemented on Saturday (a public holiday), land registrations at the updated rates will start from Monday, according to a report by The Indian Express.

Ayodhya District Magistrate Nikhil Funde confirmed the rate hike and told The Indian Express that the administration had considered feedback received since the proposal was first shared in August last year.

“The demand from the public was mostly to raise it more than our proposals in several areas. But the decision has been taken based on market rates and a survey conducted by us,” The Indian Express quoted Funde as saying.

What are circle rates?

Circle rates are official values set by the local administration to determine the minimum price of land for buying and selling. These rates are also used for calculating stamp duty and compensation if the government acquires the land.

According to a 2015 amendment to the Uttar Pradesh Stamp Act (originally passed in 1997), each district’s Collector is supposed to revise land values every August. This revision takes into account land usage, irrigation availability, proximity to roads, markets, transport hubs, factories, schools, hospitals, government offices, and whether the land is in an urban, semi-urban, or rural area.

Ayodhya was one of 54 districts in the state where circle rates had not been updated since 2017. In contrast, 21 districts had revised their rates in 2023. Neighbouring districts like Barabanki, Ambedkar Nagar, Gonda, Basti, and Sultanpur had also updated their rates.

The increase in circle rates

The biggest increases have occurred near the Ram Janmabhoomi site, where land prices have soared since the Supreme Court verdict. For example, in Tihura Manjha village, where the real estate company House of Abhinandan Lodha bought land and actor Amitabh Bachchan agreed to purchase two plots, the circle rate for agricultural land has gone from Rs 11–23 lakh per hectare in 2017 to Rs 33–69 lakh per hectare now.

For Tihura Uparhar, the circle rate has been increased from Rs 32-71 lakh per hectare to Rs 42-95 lakh per hectare. In Shahnawzpur Majha and Barahta Majha, the rates have increased from Rs 75–169 lakh to Rs 98–221 lakh per hectare.

At Ganja village, where the airport is located, old rates ranged between Rs 28 lakh to Rs 64 lakh per hectare. The new rates are between Rs 35 and 80 lakh per hectare.

The Uttar Pradesh Housing and Development Board (Avas Vikas Parishad) is planning a new township on nearly 1,800 acres in areas including Shahnawzpur Majha, Barhata Majha, and Tihura Manjha. So far, about 600 acres have already been acquired.

However, some farmers are not satisfied with the increase. “Rates should have been increased at least 200 per cent in every village surrounding nearly 10 km of Ram Janmabhoomi. Farmers are not benefitting from the developments that are taking place in Ayodhya,” The Indian Express quoted Durga Yadav, who is fighting a legal case for an increase in circle rates in the Allahabad High Court.