Sri Vijaya Puram, Oct. 10: Hon’ble Member of Parliament, Shri Bishnu Pada Ray, has urged the Andaman & Nicobar Administration to review and reform the existing system of fixation and application of “Circle Rates” (benchmark land values) in the Islands, citing serious legal, constitutional, and fiscal irregularities in the current practice.
In a letter addressed to the Chief Secretary ahead of the meeting on 10th October 2025 regarding the functioning of the Registration and Revenue Departments, the MP pointed out that the present method of fixing “circle rates” has no clear legal backing under the Indian Stamp Act or the Registration Act. He emphasized that the Indian Stamp Act applies to instruments and not land, and the A&N Administration has not adopted the provisions or framed rules authorizing fixation of such rates. Therefore, the existing “circle rate” circulars are without statutory authority and violate Article 265 of the Constitution, which prohibits collection of tax without the authority of law.
The MP further noted that the power to fix land rates legally lies under Section 45 of the A&N Islands Land Revenue and Land Reforms Regulation, 1966, which requires a transparent process involving publication, public objections, and approval by the Administrator. Since this process has not been followed, the present circle rates are procedurally and legally defective.
Ray, also drew attention to the fiscal and administrative consequences, highlighting that inflated and unnotified circle rates have led to distortions in property valuation and taxation and were even used as the basis for bank loan valuations in a recent financial scam under investigation. He urged the Administration to initiate a forensic audit into past revisions and identify accountability for unauthorized circulars. Therefore, the MP suggested a set of corrective measures, including:
· Adoption of proper statutory procedures for fixing land rates under Section 45 of the 1966 Regulation.
· Withdrawal of all non-statutory circle rate circulars.
· Framing of clear rules under the Indian Stamp Act to ensure transparency and legality.
· Integration of duly notified land rates into the Registration Department’s online portal.
Shri Ray stressed that this issue carries serious legal and fiscal implications for the Union Territory and called for immediate rectification to uphold constitutional principles and prevent future irregularities.