Ram Mandir effect: Ayodhya circle rates may see 200% jump, land prices set to soar

This decision follows large-scale developments in Ayodhya Dham and surrounding areas (PTI)

Buying land in Ayodhya may soon become significantly more expensive, with circle rates in the temple town set to be revised after seven years. The last revision occurred in 2017, but major locations within Ayodhya could see circle rates soar by up to 200%.

This decision follows large-scale developments in Ayodhya Dham and surrounding areas, particularly after the Pran Pratishtha ceremony of Ramlala on January 22, 2024. The surge in real estate activity and infrastructure improvements have prompted the necessity for this revision.

“Given the skyrocketing property rates due to massive construction in and around the city, the district collector has proposed an increase in the circle rate to align with the current market dynamics,” said B.P. Singh, a government official.

Additional Inspector General of Stamps in Ayodhya, Yogendra Singh, highlighted the significant disparity between current market prices and existing circle rates. “Land near the Ram Mandir area and along the highway has been sold at prices ranging from 41% to 1,235% above the circle rate over the last three years. In such a situation, it is estimated that the circle rate of land in major areas will increase by 200%,” Singh said.

A proposal to increase the circle rates has already been prepared, and the authorities have invited public objections regarding the proposed rates. Those wishing to file objections can do so at the Sub Registrar, Assistant Inspector General Registration, or SDM office until September 4. Following this, the district administration will release the new circle rates, as the procedural requirements have been completed.

According to a notice at the District Collectorate, the revision process has been finalized under Rule 4 of the Uttar Pradesh Stamp (Valuation of Property) 1997, following instructions from Ayodhya’s District Magistrate, CV Singh.

This is not the first time an increase in circle rates has been proposed. In 2022, ahead of the inauguration of the Ram Temple, the administration suggested a hike, but it was not implemented. At that time, it was observed that the rate per square meter mentioned in sales deeds was often higher than the prevailing circle rate.

Ayodhya Commissioner Gaurav Dayal confirmed that a final decision on the revised rates will only be made after public suggestions are considered and any objections are addressed.

Awadhesh Singh, president of the Saryu Seva Samiti, who has long advocated for an increase in Ayodhya’s circle rates, said that the government has nearly completed its land acquisition for the Ram Temple project. “The timing of the proposed rate hike appears to be aimed at boosting government revenue,” he told Moneycontrol.

“The government took as much land from us as it needed. If the circle rate had increased earlier, we farmers would have had to pay more. Now that the government’s target of buying land has almost been achieved, it is trying to increase its income by raising the circle rate,” Singh said.

What is a circle rate?

Circle rates, also known as collector rates, are set by the state government and serve as a benchmark for determining property values. Stamp duty, a tax paid on property transactions, is calculated based on these rates. Even if the declared value of a property in a sales deed is lower, the sub-registrar is required to calculate stamp duty according to the current circle rates.

Political reactions

Samajwadi Party President Akhilesh Yadav, last week accused the government of increasing the circle rate in Ayodhya to benefit those affiliated with the ruling BJP.

“Those who bought land at a low rate are now selling it at a higher rate, whereas when the people here received compensation, the circle rate was not increased,” Yadav alleged. He also mentioned that the increase in land prices in Ayodhya, fueled by infrastructure projects and the construction of the Ram Temple, has not been matched by fair compensation for the locals.

Yadav further criticized the move, stating that big IAS and IPS officers in Uttar Pradesh, including Ayodhya’s DM, SSP, and Commissioner, have purchased land at low prices and stand to gain significantly from the proposed rate hike.

Awadhesh Prasad, a Samajwadi Party MP from Faizabad, where Ayodhya lies, demanded that the new circle rates be implemented retroactively from 2017 and that those who have already received compensation be paid the difference according to the new rates.