CM Sukhu rakes up issue of relaxation in Section 18 of Land Reform & Tenancy Act

With the state facing a severe financial crunch, Chief Minister Sukhvinder Singh Sukhu has opened up a pandora’s box by stating that there is need to make some relaxation in Section 118 of the Land Reform and Tenancy Act, 1972 to make land purchase less cumbersome, especially for investors.

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It was yesterday while replying to the debate on the grim financial health of the state in the Vidhan Sabha that Sukhu touched this contentious issue. There has been demand from industry stakeholders from time to time on the need for making Section 118 less stringent but no government in the past has touched the issue. Even the smallest attempt to relax Section 118 in the past has drawn the ire of everyone.

The Section 118 primarily bars purchase of land by non-Himachalis, without seeking relaxation from the Revenue Department. Land can be bought by people from outside Himachal for residential, farming, industry or any other commercial activity but only after obtaining the necessary permissions from the Revenue Department which can often prove to be very cumbersome and time consuming. Section 118 is perceived to be one of the biggest impediments in flow of investment in the state.

Leader of Opposition Jai Ram Thakur on becoming the Chief Minister in 2017 had also stressed the need for simplifying the norms for purchase of land by outsiders in Himachal to facilitate investment in the potential revenue generating sectors of industry, power and tourism. However, there was no headway and the BJP regime did not touch the sacrosanct Section 118, fearing political backlash.

Interestingly, Jai Ram Thakur, while he was Chief Minister, hastily withdrew a relaxation in Section 118 that his regime made in August 2018. This relaxation in norms covered all employees, be it from Himachal or outside and their wards who could buy land without any permission. The relaxation was withdrawn following widespread criticism and possibility of its misuse.

Rajiv Aggarwal, president, Baddi Barotiwala Nalagarh Industries Association, said tedious procedure of seeking permission under section 118 of the HP Tenancy and Land Reforms Act are a major impediment for investment as years are lost in seeking this clearance. “A lot of time is consumed in settling series of objections raised by the officials and there is no time-frame for dealing with such cases in addition to lack of accountability of the officers. It remains to be seen whether investor-friendly changes are made in the act,” he remarked.

The clause of Section 118 had been put in place in 1972 by the first Chief Minister Dr Yashwant Singh Parmar as a protection of scare land in the hill state from being purchased by outsiders. Although successive government, both of the Congress and the BJP, spoke about the need to make Section 118 less stringent so that it does not prove to be a hindrance in investment but eventually both parties desisted from tinkering with it for fear of backlash.

Bars land purchase by non-Himachalis

The Section 118 primarily bars purchase of land by non-Himachalis, without seeking relaxation from the Revenue Department. Land can be bought by people from outside Himachal for residential, farming, industry or any other commercial activity, but only after obtaining the necessary permissions from the Revenue Department which can often prove to be very cumbersome and time consuming. Section 118 is perceived to be one of the biggest impediment to flow of investment in the state.