The proposed plot for mall. (Image: TheHindu)
Bihar Raiyati Land Purchase Policy 2026: The Bihar government has come up with a new policy to buy private land for various public projects. This policy includes higher compensation for the landowner. Under the new policy, the value of the land is valued at four times the market rate and circle rate in rural areas and twice the market rate and circle rate in urban areas. Additionally, the land owner is entitled to get an extra 10%.
This new policy was approved on 27 May 2026 by the State Cabinet and officially notified on 29 May. It will assist government departments in acquiring land through mutual consent.
Valuation:
Depending on whether the land is urban or rural the compensation will be based on the highest of the market rate/circle rate:
For example, if the land is a rural piece of land and the value of the land based on the highest of the market rate/circle rate is ₹10 lakhs then the compensation will be 4 times this amount. This would be ₹40 Lakhs. Adding the extra 10% incentive would give an additional ₹4 Lakhs making it a total of ₹44 Lakhs.
If the land is urban then the compensation will be 2 times the value. So, using the same example as above it would be ₹20 Lakhs. Adding the extra 2 Lakhs would make it a total of ₹22 Lakhs.
This new policy is for acquiring private or raiyati land by Central Government and Bihar Government departments and other eligible bodies.
This could be because they need land for roads, bridges, hospitals, schools or other public infrastructure. The government will aim to acquire suitable land from private owners via mutual consent if they do not have enough land.
Contrary to what you may think, this policy is for acquiring eligible land for specific projects. The actual acquisition will depend on the procedure and if the landowner agrees.
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A committee system has been set up under the Revenue and Land Reforms Department depending on the estimated cost of the land.
If land is being acquired for less than ₹100 Crore then a committee under the District Magistrate will assess the proposal at the district level. If the land is more than ₹100 Crore then a committee will be formed under the Divisional Commissioner.
According to reports, proposals for land acquisition at the district level will be passed on for approval within one month. The Divisional Commissioner will have 15 days to decide on the proposal. Proposals for higher amounts will go through the divisional process.
If your land may be needed for a government project then you should check that the land is in your name and has the correct land records. You should also check that the compensation is based on the correct market rate/circle rate and that the compensation has been calculated correctly.
You should also check that the extra 10% incentive has been calculated correctly. Check what exemptions there are and ensure that the land is being acquired based on the notified policy.
As the policy is based on mutual consent, you should take time to read through the terms of the acquisition and ask the relevant district authorities for any clarifications.
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