New Delhi – The Delhi government is preparing to implement a significant revision of Delhi agricultural land circle rates for the first time in 17 years, with draft proposals indicating a potential increase of up to eight times over existing rates. Officials familiar with the matter confirmed on Tuesday that this move could substantially alter land valuations across the Capital’s rural belt, marking a watershed moment in the city’s property valuation framework.
According to two officials aware of the proposal, the Delhi agricultural land circle rates could surge to as much as ₹5 crore per acre in select locations, compared with the current uniform rate of ₹53 lakh per acre. This dramatic increase reflects the massive urbanization and development that Delhi has witnessed over nearly two decades while agricultural land valuations remained frozen in time.
Long-Pending Update Finally Moves Forward
The existing Delhi agricultural land circle rates were last revised in 2008, creating a 17-year gap that has resulted in significant discrepancies between official valuations and actual market prices. Although the government announced an increase in 2023, implementation could not proceed due to administrative and procedural hurdles, leaving agricultural land values unchanged despite rapid urbanization transforming the Capital’s landscape.
The revision of Delhi agricultural land circle rates follows a series of meetings held over the past two months between the revenue department and various stakeholders including farmers’ representatives and agricultural organizations. Officials emphasized that this exercise forms part of a broader review of property valuation norms in Delhi, but agricultural land has been prioritized separately due to the unusually long gap since the last revision.
Revenue Loss and Market Mismatch
A senior revenue official explained the urgent need for revising Delhi agricultural land circle rates, stating: “Unlike residential and commercial properties, where revised circle rates are still under examination by a committee, agricultural land has been prioritized. There is a huge mismatch between actual transaction values and the notified circle rate. Land is being sold at much higher prices, but stamp duty is being paid on ₹53 lakh per acre, which means the government is losing revenue.”
This substantial gap between official Delhi agricultural land circle rates and actual market transactions has led to widespread undervaluation, depriving the government of legitimate revenue while creating distortions in the property market. The frozen rates have failed to reflect the dramatic appreciation in land values that has accompanied Delhi’s expansion and development.
Location-Based Differential Rates
The draft proposal for Delhi agricultural land circle rates does not envisage a uniform rate across all villages. Instead, circle rates are likely to vary based on multiple factors including location, surrounding development, and prevailing land use patterns. This approach recognizes the diverse characteristics of agricultural land across different parts of Delhi.
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Officials indicated that areas retaining large, contiguous tracts of farmland could see sharper increases over the base rate in the revised Delhi agricultural land circle rates. Conversely, villages where agricultural land has largely transitioned into residential or semi-urban use may witness relatively lower degrees of change, reflecting their altered character and reduced agricultural viability.
Scope of Agricultural Land in Delhi
According to revenue department estimates, more than 50,000 acres of land across over 200 villages in Delhi remain under agricultural use. These include villages such as Tigipur, Khampur, Hamidpur, Jhangola, Bankner, Bhorgarh, Lampur, Bakhtawarpur, Dariyapur Kalan, Najafgarh, Bijwasan, and Dhichau Kalan, among others. The revision of Delhi agricultural land circle rates will impact all these locations, though to varying degrees.
Officials noted that the current blanket valuation system has led to widespread undervaluation, masking sharp differences in land prices between villages on the city’s periphery and those closer to urbanized zones. The new Delhi agricultural land circle rates aim to address these disparities more accurately.
Stakeholder Consultations and Proposals
Consultations with farmers regarding Delhi agricultural land circle rates were held in October, following which stakeholders were invited to submit suggestions until October 15. During these discussions, farmers’ representatives proposed circle rates ranging from ₹5 crore to ₹8 crore per acre, depending on various factors including proximity to developed areas, road connectivity, and surrounding infrastructure.
The revenue department has also studied Delhi agricultural land circle rates in comparison with neighboring states to develop a comprehensive framework. This comparative analysis ensures that the revised rates remain competitive while reflecting ground realities in the Capital.
Broader Property Valuation Review
The revision of Delhi agricultural land circle rates is linked to a larger exercise to overhaul property valuation norms in Delhi. A committee constituted under an order dated October 28, 2025, has been tasked with examining existing circle rates notified in 2014 for residential, commercial, and industrial properties. The panel includes representatives from multiple civic bodies and departments.
As part of its mandate, the committee is analyzing transaction data from the past five years, market trends, location-wise variations, and inputs received through public consultations. However, officials indicated that revisions to residential and commercial circle rates will likely take longer than Delhi agricultural land circle rates, as the committee continues evaluating sub-category-wise and district-wise data.
Future-Proofing Through Periodic Reviews
The proposal for Delhi agricultural land circle rates also includes a provision for periodic upward revision at fixed intervals, instead of allowing prolonged gaps between updates. “The idea is to ensure that circle rates remain closer to prevailing market values and reduce disputes and discrepancies during property registration,” an official explained.
This mechanism aims to prevent the recurrence of the current situation where Delhi agricultural land circle rates remained unchanged for 17 years. Once finalized, the proposal will be placed before the competent authority for approval, though officials did not specify an implementation timeline.
Harsh Vardhan Bansal, president of NAREDCO Delhi, emphasized the importance of aligning rates with market realities to encourage investment, particularly in industrial and commercial zones, noting that current multipliers applied to registration rates are significantly higher than those in neighboring states.
