PATNA: The cost of buying land and homes in Bihar has risen following the state government’s announcement on Thursday to increase registration fees for properties in both rural and urban areas. The updated minimum value register (MVR), or circle rates, shows a 60% hike in rural land rates and a doubling of urban rates.
The prohibition, excise, and registration department released a notification on Thursday, with the revised rates taking immediate effect. Furthermore, the government has instituted an automatic yearly increment of 5% in MVR rates.
The previous revision for MVR rates was conducted in 2013 for rural regions and in 2016 for urban regions. The department plans to conduct a thorough review every three years, factoring in new infrastructure, such as roads, industrial zones, and major projects like airports and irrigation schemes.
This revision is anticipated to assist farmers by providing increased compensation for land acquisition. Women will benefit from greater concessions on property registration; the concession on stamp duty for land or properties registered in a woman’s name has risen from 0.3% to 0.4%, while the 0.1% concession on registration fees remains the same, totaling 0.5% for women.
The general stamp duty rate has also seen a 1% increase.
As per a government press release, “This influx of funds is expected to enhance the economic condition of farmers and citizens while fostering the state’s economic development. Consequently, farmers will see a total of Rs 14,831 crore in additional compensation under the updated rates.”
Compensation for land acquired for state projects is expected to rise from Rs 14,897 crore to Rs 18,637 crore, adding Rs 3,740 crore for landowners. For central government projects, the compensation is projected to jump from Rs 24,629 crore to Rs 39,460 crore under the new rates.
The government has also standardized land classifications across the state, defining seven categories for rural and peripheral areas, and six for urban and metropolitan areas.
