AHMEDABAD: The Gujarat government's proposal to revise circle rates (Jantri) has triggered widespread opposition from various stakeholders, with the majority advocating for rate reductions rather than increases.
This development comes just a year after the controversial rate hike in 2023, which faced significant resistance and required implementation delays.
Learning from past experiences, the government has adopted a more consultative approach this time, inviting public feedback before proceeding with any changes. However, this initiative has revealed deep divisions among different interest groups.
Of the approximately 10,000 responses received, an overwhelming 85 per cent favour reducing current rates, while only 15 per cent support an increase.
The farming community is divided on the issue. Farmers like Shankar Thakor from Gandhinagar district, whose lands fall under the proposed 'Bharat Mala' project, strongly support the rate increase. Their motivation stems from the potential for higher compensation in case of land acquisition.
Conversely, farmers whose properties are already included in town planning schemes and have previously benefited from price appreciation oppose any further rate hikes.
The real estate sector has emerged as a unified voice against the proposed increase. Nirmal Patel, a Gandhinagar-based developer, argues that the market is already struggling with current pricing levels. He warns that higher circle rates would inflate property prices beyond sustainable levels, potentially dampening both residential and commercial real estate activities in the Gandhinagar-Ahmedabad region.
The government's previous attempt to increase circle rates in 2023 serves as a cautionary tale. That decision met with such strong opposition that authorities were forced to delay implementation by six months and eventually introduced relaxations to the revised rates.
This history of resistance, combined with the current overwhelming negative feedback, suggests that the government may need to carefully reconsider its approach to avoid another policy setback.