Accurate circle rates key to good governance

                New Delhi: Supreme Court has ruled that 
fixation of accurate circle rates, the minimum 
value of land and properties in a locality, is a 
prerequisite of good governance and will help 
enhance ease of living and doing business, but 
lamented that this important aspect has 
escaped “adequate attention” of govts.
Circle rates notified by govts determine the 
stamp duty to be paid by purchasers of land 
and properties in a locality, and helps the land 
acquisition officer quantify the fair 
compensation to 
be paid to landowners.
A bench of Chief Justice Sanjiv Khanna and 
Justice Sanjay Kumar, while rejecting an 
appeal by Madhya Pradesh Road Development 
Corporation, said, “While serving the interests 
of 
honest taxpayers, accurate circle rates would 
simultaneously deter non-compliant taxpayers 
by preventing under-valuation.”
In the judgment, the CJI stated, “Rational and 
fair circle rates are essential for good 
governance. Since the fixation of circle rates 
affects everyone financially, the data and 
methods used 
to determine them should be made public. 
Unfortunately, this important aspect has not 
received sufficient attention from authorities.”

“An inflated rate results in an unfair financial 
burden on purchasers. Conversely, an 
undervalued rate leads to inadequate stamp 
duty collection, adversely affecting the State’s 
revenue. 
Circle rates, which reflect the market price, 
ensure proper revenue collection for the State 
by preventing under-valuation of properties,” 
the bench said.


Source : Times of India