Government mulls making Sec 118 less cumbersome to facilitate land purchase by non-Himachalis

The state government is mulling to make amendments in Section 118 of Tenancy and Land Reform Act, 1972 to make purchase of land for investors less cumbersome so as to promote industrial development.

The Revenue Department has been deliberating on the issue for long in view of the complications involved in seeking relaxation for land purchase, especially by industrialists in Himachal due to Section 118 of Tenancy and Land Reform Act, 1972. The issue is likely to be placed before the Cabinet in its meeting on October 25.

Chief Minister Sukhvinder Singh Sukhu has, in the past, has indicated the need for making amendments to simplify the Section 118 of the Tenancy and Land Reform Act, 1972. However, considering the sacrosanct nature of the Act, no regime has dared to make amendments in the Act, for fear of being termed as anti-Himachal.

Several instances of benami land deals, where the wealthy people bought huge chunks of land in Himachal in the name of locals circumventing Section 118, have been detected from time to time. These include several tourism related projects, especially hotels and real estate housing projects, mainly in Kasauli-Barog area of Solan district, Kullu-Manali, Shimla and Kangra districts.

Section 118 of Tenancy and Land Reform Act bars outsiders, including investors, realtors as well as individuals from purchasing land in Himachal. However, the Revenue Department grants permission for purchase of land for residential, industrial, tourism, religious and other purposes to people who are non-Himachalis in relaxation of the Act.

In the last three years, a total of 215 cases under Section 118 have been approved till July 31, 2025. Out of this, the maximum number of about 110 were for residential purposes, while 75 were for setting of tourism projects. The remaining cases were for various purposes like real estate projects, housing board colonies, petrol pumps and other uses.

Various industrial associations have, from time to time, been seeking relaxation and simplification of Section 118. They rue that it is due to the lengthy and time consuming procedures that the completion of their industrial projects gets inordinately delayed. Some of the independent power producers, who were allotted hydel projects in the past, surrendered due to restrictions on purchase of and obtaining of permissions, which go right up to the Cabinet.

Successive governments have been in favour of simplifying the process for purchase of land by people from outside Himachal as it is viewed as a hurdle in industrial investment, owing to lengthy and complicated procedures for applying and seeking NOCs from a number of agencies. Several projects, especially those pertaining to hydel power, have been delayed as purchasing land in relaxation of the Tenancy and Land Reform Act has proved to be a very lengthy procedure.

It was during the tenure of the first Chief Minister Dr Yashwant Singh Parmar that the Tenancy and Land Reform Act, especially Section 118, was enacted to prevent land sharks from buying huge chunks of land in Himachal. As such, only Himachalis, who own agricultural land, can purchase land without permission.

Even people, who are Himachalis but do not own agricultural land or have been residing in the state since generations, have to seek permission from the Revenue Department in relaxation of Section 118 of the Tenancy and Land Reform Act, 1972 to buy land.