J&K 2.0: Land Reforms


By Mallika Joshi (Jr. Associate, Lex Services)

In a bid to bring under the cover of uniform Indian legislation and to promote development and integrity, the Centre transformed the state of Jammu & Kashmir (“J&K”) into a Union Territory. Now the MHA brought into effect, the third Order vide which state laws of J&K have been repealed/substituted/amended. This leads to a complete makeover of multiple facets of governance in the now Union Territory of J&K, particularly, in terms of land reforms. With the easing of land laws, a large opportunity is presented for investment by corporations/individuals who are non-residents in the Union Territory.

PREVIOUS LAWS

The state of J&K was one of the first in the country to introduce land and agrarian reform. This gave rise to some infamous land laws in the state-

  1. Big Landed Estates Abolition Act, 1950 was enacted to set a ceiling of 186 kanals (roughly 22 acres) to the ownership of land. Any land excess of that was acquired by the State Government and redistributed among tillers, landless laborers etc., without any compensation to the landholder. The landholders were seen as intermediaries between tillers and State and hence this Act was enacted to remove intermediaries. This couldn’t be challenged as the State wasn’t covered under protective measures guaranteed for the same by the Constitution.
  2. Jammu and Kashmir State Land (Vesting of Ownership to Occupants) Act, 2001 also known as “Roshni Act”, was enacted in 2001 to regularize land grabbed illegally by charging the land holders a hefty fee which was then to be used to generate electricity in the state. The aim was to raise an ambitious Rs. 25,000 crores but in more than 2 decades of its existence, it raised only around Rs. 75 crores due to it being largely misused and controlled arbitrarily.
  3. Apart from these, other Acts like Jammu and Kashmir Land Revenue Act, 1996, Jammu and Kashmir Land Acquisition Act, Samvat 1990, Jammu & Kashmir Urban Ceiling Act, 1971, Jammu and Kashmir Land Grants Act, 1960, etc. were also in play. Their provisions mirrored the provisions of land laws prevalent in the rest of the country.

NEW ENACTMENTS

After Articles 35-A and 370 were abolished, removing the special status conferred on Jammu & Kashmir, the State has been a host to new legislative developments, land reforms being the latest and most crucial. The Jammu and Kashmir Reorganisation (Applicability of State Laws) Order, 2020 (“Order”) which was passed in March, 2020, was brought into effect in October, 2020. This Order has amended and/or substituted and/or repealed multiple laws.

Repealed: The Big Landed Estates Abolition Act, 1950, Roshni Act, 2001 (all transfers made under this Act have been declared null and void by the Order), Jammu & Kashmir Alienation of Land Acts, 1995, Jammu & Kashmir Urban Ceiling Act, 1971, etc. have been repealed. Substituted: Jammu and Kashmir Land Acquisition Act, Samvat 1990 has been substituted with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013).

Amended: Major amendments are seen in the Jammu & Kashmir Development Act, 2017 and the Land Revenue Act, 1996.

KEY INTRODUCTIONS:

ESTABLISHMENT OF THE INDUSTRIAL DEVELOPMENT CORPORATION

The new Order has amended the Jammu & Kashmir Development Act, 2017 to introduce the creation of an Industrial Development Corporation to promote rapid development and growth of industries in the Union Territory. This Corporation can hold any immovable/movable property as required to fulfil its purpose and can lease/rent/sell it. Its objective is to oversee development of industries and industrial areas, and ensure that establishments are self-secure.

PURCHASE OF LAND BY NON-RESIDENTS

The most widely received amendment passed by the Order is the transfer of land in the Union Territory to non-residents. This implies that Indian citizens, even if they do not have “domicile” in the Union Territory can now purchase land in the Union Territory. However, certain restrictions are still prevalent for purchase/conversion of agricultural land.

After this Order, spouses of domicile holders will also be considered domicile holders. Earlier they were just permanent residents in the state.

ESTABLISHMENT OF REVENUE BOARD

The Revenue Board is created in alliance with the Land Revenue Act, 1996 for the purpose of recognizing development areas in the Union Territory, identifying which land is required and acquiring the same. It can also declare specific land to be “eco-sensitive” and hence no sale of that land will be permitted.

The Board also oversees the acquisition of agricultural land for non-agricultural purposes by the Government. Earlier, this permission for the same had to be given by the Revenue Minster.

TRANSFER OF AGRICULTURAL LAND

Certain restrictions have been imposed on the transfer of agricultural land to a non-agriculturist by way of sale, gift, mortgage, etc. It is contingent on receiving permission from an Official, appointed under the Act for this specific purpose.

The non-agriculturalist holding agricultural land has to put the land to use within 5 years of its purchase.

In case of repurpose of agricultural land to residential/other purpose, the concerned structure built upon the land cannot exceed 400 sq. mtrs in total. Fragmentation of such land for said purpose is illegal.

REAL ESTATE (REGULATION & DEVELOPMENT) ACT, 2016

Under the new Order, the RERA, 2016 is made applicable to the Union Territory. This introduces housing and redevelopment projects and consequently, huge monetary investment in the real estate sector of the Union Territory. It will also bring about protection of consumer interest and delivery. The Jammu and Kashmir Real Estate (Regulation and Development) Bill, 2018 is yet to be approved. This provides for establishment of the RERA Tribunal in the Union Territory.

WELCOME CHANGE v ASSAULT ON HISTORY

The land laws in the State of Jammu and Kashmir were based on traditional agrarian laws mixed with unique demographic situations of the state, made to suit its requirements as a state which was under constant political rife. The new Amendments have introduced sweeping changes by making Central Acts like Civil Procedure Code, 1908, Criminal Procedure Code, 1973, Indian Stamp Act, 1899, Indian Penal Code,1860, Arbitration Act, 1996, etc. applicable to the Union Territory. Local residents are seeing this change with hostility as this leaves them without any protection and open to exploitation (under the garb of investment and development) of its land.

On the contrary, this move has been largely welcomed as it will promote investment in industries as well as housing projects in the Union Territory, which in turn will boost employment.

CONCLUSION

Jammu & Kashmir has always been in the middle pf political controversy, haunted by terrorism and stunted in development. By bringing the region under Central Acts, development scope has been much widened. Industries and real estate form a large part of a state’s economy in terms of providing employment, housing, investment, etc. as is seen in the country. Specific legislature is developed and provided for the protection of interest of all parties and now the same is being extended to the Jammu & Kashmir. While for the time being central laws are extended, specific rules and regulations as under the Acts will have to be created for the unique status of Jammu & Kashmir.

  1. Jammu & Kashmir Reorganisation Act, 2019
  2. Jammu and Kashmir Reorganisation (Applicability of State Laws) Order, 2020 (passed in March, 2020)
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