Tarun Karthick
Sri Vijaya Puram, 10 October 2025
Hon’ble Member of Parliament, Mr. Bishnu Pada Ray, has called upon the Andaman & Nicobar Administration to undertake an immediate review and legal reform of the existing system of fixing and applying “Circle Rates” (benchmark land values) across the Islands, alleging serious legal, constitutional, and fiscal irregularities in the current practice.
In a letter addressed to the Chief Secretary ahead of a meeting scheduled on October 10, 2025, regarding the functioning of the Registration and Revenue Departments, Mr. Ray stated that the current method of determining “circle rates” lacks clear legal backing under the Indian Stamp Act or the Registration Act. He pointed out that the Indian Stamp Act governs instruments and not land, and that the A&N Administration has not adopted or framed any rules authorising the fixation of such rates. Consequently, he argued, the existing “circle rate” circulars are issued without statutory authority, thereby violating Article 265 of the Constitution, which prohibits the collection of taxes without the authority of law.
The MP further highlighted that the lawful power to determine land rates lies under Section 45 of the Andaman & Nicobar Islands Land Revenue and Land Reforms Regulation, 1966, which mandates a transparent process involving public notification, inviting objections, and approval by the Administrator. Since this due process has reportedly not been followed, Mr. Ray termed the present circle rates as both procedurally and legally defective.
Drawing attention to the fiscal and administrative implications, the MP observed that inflated and unnoticed circle rates have distorted property valuation and taxation in the Islands. He also claimed that such rates were used as a basis for bank loan valuations in a recent financial scam currently under investigation. In this context, he urged the Administration to initiate a forensic audit into past revisions of circle rates and fix accountability for the issuance of unauthorised circulars.
As corrective measures, Mr. Ray proposed the following steps:
- Adoption of proper statutory procedures under Section 45 of the 1966 Regulation.
- Withdrawal of all non-statutory circle rate circulars.
- Framing of clear and transparent rules under the Indian Stamp Act.
- Integration of duly notified land rates into the Registration Department’s online system.
Emphasizing the gravity of the issue, Mr. Ray underscored that the matter carries significant legal and fiscal implications for the Union Territory and urged the Administration to act promptly to uphold constitutional and statutory principles while preventing future irregularities.
