BCCI submits a memorandum to the Bihar Government on circle rate revision and registration issues.

Patna, January 19, 2026: A delegation of the Bihar Chamber of Commerce and Industries (BCCI) met the Secretary, Prohibition, Excise and Registration Department, Government of Bihar, and submitted a detailed memorandum highlighting concerns over the opposed revisions of circle rates and practical difficulties in the property registration process.

BCCI President P. K. Agarwal said the delegation informed the Secretary that inconsistent and steep increases in circle rates were adversely impacting the real estate, construction, and allied industries.

The BCCI delegation mentioned that exceeding the circle rate puts an additional tax burden:

He noted that when circle rates exceed prevailing market values, they impose an additional income tax burden, discourage property transactions, slow down market activity, and ultimately affect state revenue.

Explaning the key suggestions in the memorandum, Agrawal said land valuation should be based either on the average of the highest sale prices over the last two to three years or linked to inflation.

The BCCI recommended that revisions in circle rates be limited to a maximum of 5 percent once every three years, instead of annual hikes, to ensure rational valuation and market stability.

On the valuation of flats, the BCCI objected to the existing system, stating that area-wise variations in construction costs already account for land value.

Adding a proportional land cost separately results in double-counting. The Chamber proposed that flat rates should be fixed, inclusive of land value, and that a uniform rate be applied across the state.

Seeking relief in the registration of shops:

Regarding the registration of shops and offices, the Chamber suggested allowing discounts of up to 50 percent for properties located on interior roads, upper floors, and lower ground floors, considering the significant price differences compared to shops on main roads and ground floors.

The memorandum also recommended adopting CPWD or Bihar Building Construction Department guidelines for determining construction costs during registration, including for old buildings, and allowing additional depreciation for buildings over 50 years old.

Other key suggestions included registering housing units for Economically Weaker Sections (EWS) and low-income groups (LIG) at government-prescribed rates with stamp duty concessions, simplifying and rationalizing registration fees for lease deeds, removing the time limit for document rectification, and expanding and clarifying the definition of blood relatives for powers of attorney.

The BCCI further proposed that the maximum cap on lease deed registration fees be aligned with the rates currently applicable in Uttar Pradesh.

The Secretary, Prohibition, Excise and Registration Department, heard the delegation’s concerns and assured them that the suggestions would be examined at the departmental level.

The delegation included BCCI Vice President N. K. Thakur, Chairman of the Urban Development Sub-Committee, Rajesh Chaudhary, and other members.

Also Read: BCCI urges the Bihar government to set up MSME facilitation councils in every division.

EOM.