Circle rates in Palampur not revised as per market value

Despite manifold increase in market prices of land at Palampur and its adjoining areas over the past one year, the state government is yet to revise the circle rates of land proportionately. These prices are fixed by the collector from time to time.

At present, the market rate of land in most of the areas is above Rs 60 lakh per kanal, but the circle rate continues to be Rs 8 lakh to Rs 15 lakh per kanal. The state is thus losing revenue on the sale and purchase of land. In many areas, the land prices have gone up to Rs 1.25 crore per kanal.

In wards I and II of the Palampur Municipal Corporation, the circle price is between Rs 90 lakh and Rs 1.25 crore. However, if one moves half a kilometre away, the circle price falls to merely Rs 8 lakh per kanal. After the formation of MC in Palampur in 2021, the prices of land have touched new highs. However, the state government has not revised the circle rates proportionately.

Without a revision in circle rates as per the prevailing market prices, cash transactions in the sale and purchase of such properties have touched a new high, thereby generating black money. The Income Tax Department is well versed with the situation, but no steps have been imitated to check the circulation of black money in land deals.

A senior revenue official says the circle rates of land are revised as per the recommendations of the SDMs concerned by taking the average cost of land during the year. However, the state government has kept a cap of 7.5 per cent on the annual increase in circle rates which is a big hurdle for enhancing the circle prices. This means the circle rates of properties cannot be increased or decreased by more than 7.5 per cent of the prevailing rates. As per government instructions, the prevailing market rate is no criterion for fixing the circle rate of land in the state, he says.

As per the information, several Deputy Commissioners have already recommended the state government to immediately increase the circle rates. However, no decision has been taken by the government in the matter yet