House sends Section 118 changes to select panel for detailed review

The Himachal Pradesh Vidhan Sabha has put on hold the proposed amendment to Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, 1972, opting instead for a closer examination through a Select Committee. The decision came on the final day of the winter session in Dharamsala, where Speaker Kuldeep Singh Pathania accepted a request by BJP MLA Randhir Sharma, supported by Chief Minister Sukhvinder Singh Sukhu, to refer the Bill for detailed scrutiny.

The select committee will include legislators from both the ruling Congress and the opposition BJP. Pathania announced that the panel will study the Bill and present its report during the Budget session. Revenue Minister Jagat Singh Negi, who introduced the amendment Bill on December 2, will constitute the committee and issue the formal notification.

The proposed amendments aim to modernise Section 118, a provision originally crafted to regulate land transfers to non-agriculturists. While the law has historically protected local land interests, the government argues that Himachal Pradesh’s socio-economic landscape has evolved considerably, requiring a more flexible framework to attract investment and support new business models.

Chief Minister Sukhu noted that many sincere investors have struggled to meet project deadlines due to unexpected delays. To address this, the Bill proposes a mechanism for granting time extensions upon payment of a prescribed penalty. The government believes this will reduce project failures and improve investment confidence.

Another major proposal seeks to exempt building leases of up to 10 years from Section 118 restrictions, a move aimed at stimulating economic activity in rural areas. Additionally, the Bill intends to make real estate transactions more accessible by allowing non-agriculturists to purchase completed buildings or flats directly from private developers.

A significant reform in the Bill concerns co-operative societies operating in village areas. Though these bodies are farmer-driven, their legal status currently prevents them from acquiring or receiving land as agriculturists. The government now proposes granting them the ability to acquire land without seeking special permission under Section 118. This change is expected to empower farmers, open new avenues for local enterprises, generate employment and strengthen the rural economy.

With bipartisan agreement on the need for deeper study, the Select Committee’s assessment will now shape the future course of land reforms in Himachal Pradesh.