Member of Parliament Bishnu Pada Ray has called on the Andaman & Nicobar Administration to review and reform the current system of fixation and application of “circle rates” in the islands, citing serious legal, constitutional, and fiscal irregularities. The appeal comes ahead of a scheduled meeting regarding the functioning of the Registration and Revenue Departments.
In a detailed letter addressed to the Chief Secretary, Ray highlighted that the present method for determining circle rates lacks legal backing under the Indian Stamp Act and the Registration Act. He noted that the Stamp Act applies to instruments and not land and that the A&N Administration has not framed specific rules to authorize such rates. As a result, the existing circulars governing circle rates are without statutory authority and violate Article 265 of the Constitution, which prohibits taxation without legal sanction.
Ray further pointed out that the power to fix land rates legally resides under Section 45 of the Andaman & Nicobar Islands Land Revenue and Land Reforms Regulation, 1966. The law requires a transparent process including public notification, opportunity for objections, and final approval by the Administrator. Since this procedure has not been followed, the current circle rates are both legally and procedurally defective.
The MP also flagged serious fiscal and administrative consequences arising from inflated and unnotified circle rates. He emphasized that such rates have led to distortions in property valuations and taxation, and were even cited in determining bank loan values in a recent financial scam currently under investigation. He urged the Administration to conduct a forensic audit of past circle rate revisions to identify accountability for unauthorized circulars.
To address these issues, Ray suggested a series of corrective measures: the adoption of proper statutory procedures 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 integration of duly notified land rates into the Registration Department’s online portal.
The MP stressed that the current system poses significant legal and fiscal risks for the Union Territory and underscored the urgency of reform to uphold constitutional principles and prevent future irregularities. He called for immediate administrative action to restore transparency and legality in land valuation and registration processes.
The appeal from the MP places renewed focus on the need for strict adherence to statutory procedures and accountability within the administration, aiming to safeguard public trust and ensure fiscal compliance in the islands’ property and registration framework.
