Periodic revision of guidance value essential for fair land compensation: Karnataka Minister Krishna Byre Gowda

Periodic revision of land guidance value is necessary to ensure that farmers receive fair compensation during land acquisition and to prevent distortions in land transactions, Revenue Minister Krishna Byre Gowda told the Karnataka Legislative Council on March 11.

Replying to BJP member K.S. Naveen in the Council, the Minister said regular revision of guidance value would help bridge the gap between official rates and prevailing market prices, while also reducing the scope for unaccounted cash transactions in land deals.

Pointing to the wide gap between guidance value and market price of land in several parts of Karnataka, he said, “In some areas, the guidance value of land may be around ₹2 lakh while the actual market value ranges between ₹70 lakh and ₹80 lakh. Such a large difference encourages transactions involving unaccounted money.”

Periodic revision of guidance value, he said, would help align official values with market realities, curb black money in property transactions, and ensure that farmers receive fair and reasonable compensation when their land is acquired for public projects.

Compensation continues to be based on 2019 value

Mr. Naveen raised concerns that compensation in several land acquisition cases continues to be calculated based on the 2019 guidance value, even though the State Government had revised the guidance value in 2023. He sought to know whether this had resulted in financial loss to farmers whose land was acquired.

Responding to the query, Mr. Byre Gowda said compensation for land acquisition is determined in accordance with the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

He explained that once a preliminary notification for land acquisition is issued, the guidance value applicable at that time is considered for calculating compensation. Subsequent revisions to guidance value cannot be applied to such cases.

Average of three years

Instead, the compensation is determined based on either the existing guidance value at the time of notification or the average value of registered sale deeds in the preceding three years, whichever is higher.

Mr. Naveen, however, argued that using older guidance values as the basis for compensation could result in injustice to farmers, particularly when land prices increase substantially over time.

Acknowledging the concern, Mr. Byre Gowda said delays in revising guidance values could indeed cause hardship to farmers in certain situations. “The government acquires land for various public purposes. If guidance values are not revised periodically, farmers may suffer losses. That is why we have been advocating revision of guidance values from time to time,” he said.