Delhi Government Plans Major Revision of Agricultural Land Circle Rates After 17 Years, Prices May Rise Up to Eight Times

New Delhi | December 17, 2025 The Delhi government is preparing to sharply revise circle rates for agricultural land, with draft proposals suggesting an increase of up to eight times the existing rates in certain areas. If approved, this would mark the first revision of agricultural land circle rates in the Capital in 17 years and could significantly change land valuations across Delhi’s rural and semi-rural regions. Officials familiar with the proposal said the circle rate for agricultural land, which currently stands at a uniform ₹53 lakh per acre, may go up to as much as ₹5 crore per acre in select locations. These higher rates are expected in areas that are closer to developed zones or have seen rapid infrastructure growth in recent years. The existing circle rates were last revised in 2008. Although the government announced a hike in 2023, it could not be implemented due to administrative and procedural delays. As a result, agricultural land values have remained unchanged on paper for nearly two decades, even as Delhi has expanded rapidly and land prices have surged in reality. According to officials, the proposed revision follows several meetings held over the past two months between the revenue department and farmers’ groups, agricultural bodies and other stakeholders. The exercise is part of a broader review of property valuation norms in Delhi, but agricultural land has been taken up separately because of the unusually long gap since the last update. A senior revenue official said there is a large mismatch between actual market prices and notified circle rates for farmland. “Land transactions are happening at much higher values, but stamp duty is still being paid on ₹53 lakh per acre. This leads to undervaluation and results in revenue loss for the government,” the official said. The draft proposal does not suggest a single rate for all villages. Instead, circle rates are likely to vary depending on location, surrounding development and current land use. Officials said villages that still have large and continuous stretches of farmland may see sharper increases, while areas where agricultural land has already shifted towards residential or semi-urban use could see a relatively smaller change. As per revenue department estimates, over 50,000 acres of land across more than 200 villages in Delhi are still classified as agricultural. These include areas such as Tigipur, Khampur, Hamidpur, Jhangola, Bankner, Bhorgarh, Lampur, Bakhtawarpur, Dariyapur Kalan, Najafgarh, Bijwasan and Dhichau Kalan, among others. Officials said the current blanket valuation has hidden wide differences in land prices between villages located near city limits and those farther away. This has often led to disputes and undervaluation during property registration. Consultations with farmers were held in October, and stakeholders were invited to submit their suggestions until October 15. During these discussions, farmers’ representatives suggested circle rates ranging from ₹5 crore to ₹8 crore per acre, depending on factors such as road connectivity, nearby infrastructure and distance from developed areas. The revenue department has also studied circle rates for agricultural land in neighbouring states to create a fair comparison. The proposed revision is linked to a larger effort to overhaul property valuation norms in Delhi. A committee formed under an order dated October 28, 2025, is currently reviewing circle rates for residential, commercial and industrial properties that were last notified in 2014. The committee includes representatives from agencies such as the Municipal Corporation of Delhi, New Delhi Municipal Council, Delhi Development Authority and other key departments. Officials said changes to residential and commercial circle rates may take more time, as detailed analysis of transaction data, market trends and public feedback is still ongoing. For agricultural land, the proposal also includes regular revisions at fixed intervals in the future to avoid long gaps. “The aim is to keep circle rates closer to market values and reduce disputes during registration,” the official said. Once finalised, the proposal will be sent to the competent authority for approval. While no timeline has been confirmed, officials said further consultations may be held before the revised rates are officially notified. [17/12, 09:04] Jefry Jenifer: Delhi Government Plans Major Revision of Agricultural Land Circle Rates After 17 Years, Prices May Rise Up to Eight Times Delhi may soon see a major change in the value of its agricultural land. The Delhi government is preparing to revise circle rates for farmland for the first time in 17 years, and the proposed hike could be as high as eight times the current rates. If approved, this move is expected to significantly impact land valuations across the Capital’s rural belt. At present, the circle rate for agricultural land in Delhi is a flat ₹53 lakh per acre. According to officials familiar with the draft proposal, this could increase to as much as ₹5 crore per acre in select locations, especially in areas close to developed zones and major infrastructure. The existing rates were last revised in 2008, and despite rapid urban growth, they have remained unchanged due to administrative delays. The proposal follows multiple meetings held over the past two months between the revenue department, farmers’ groups and other stakeholders. Officials said there is a wide gap between actual market prices and notified circle rates, leading to undervaluation of land and loss of stamp duty revenue for the government. The draft does not suggest a single rate for all villages. Instead, circle rates are likely to differ based on location, surrounding development and land use. Areas with large stretches of active farmland may see sharper hikes, while villages that have already turned semi-urban may witness smaller changes. More than 50,000 acres of land across over 200 villages in Delhi are still under agricultural use. Farmers’ representatives, during consultations in October, suggested circle rates ranging from ₹5 crore to ₹8 crore per acre depending on road access and nearby infrastructure. The revision of farmland rates is part of a wider exercise to update property valuation norms in Delhi. Once finalised, the proposal will be placed before the competent authority for approval. Officials said more consultations may be held before the new rates are formally notified.