More than two and a half years have passed since the Jammu and Kashmir Government notified the J&K Land Grants Rules, 2022, aimed at bringing transparency, accountability, and efficiency to the leasing of Government land. Yet, the rules remain unapplied in one of the most lucrative and strategically significant regions – Gulmarg. This inaction, despite clear mandates and legal authority, is not only baffling but a missed opportunity for the revenue-deficient Union Territory to generate substantial and sustainable financial resources. The Union Territory of Jammu and Kashmir is facing a persistent revenue deficit, relying heavily on Central grants to meet its developmental and administrative needs. Under such circumstances, every opportunity to generate internal revenue must be seized, and the Gulmarg lease issue presents one such golden window. The notified rules offer a robust legal framework for the retrieval of Government land post lease expiry and mandate transparent re-auctioning of such land. However, despite all but two hotel leases having expired, the Government has neither retrieved the land nor initiated the re-auctioning process.
The significance of this lapse becomes clearer when one considers the history of these leases. Most of the hotel properties in Gulmarg were allotted decades ago under outdated policies at negligible rent and lease premiums, totally disproportionate to the current market value. Over time, these leaseholders – many of them influential – have reaped immense profits through their operations on prime Government land without offering any meaningful return to the public exchequer. Even worse, a number of these hoteliers have allegedly illegally encroached upon additional land beyond their original leasehold – clear violations that the Government is empowered to address but continues to ignore.
The 2022 Rules are unambiguous. No lease shall be renewed, and expired leases will be re-allotted only through open and competitive bidding. Any violation of lease terms renders the agreement automatically void, empowering the Government to resume the land without compensation. Yet, the reality is starkly different – expired leases continue as if nothing has changed, and the Government’s silence is steadily eroding public trust in its commitment to governance and fiscal prudence.
It is also pertinent to note that Gulmarg, being an ecologically fragile and legally protected zone, is under strict judicial restrictions regarding fresh constructions. This elevates the value of existing hotel properties manifold, as new entrants to the hospitality sector are left with no option but to compete for existing infrastructure. This unique scenario creates a seller’s – or, in this case, lessor’s – market. Global and national hospitality chains would vie for the opportunity to operate in Gulmarg, potentially raising astronomical sums in lease premiums, annual rents, and associated tourism-linked taxes. But this potential remains untapped due to Government inaction.
One may argue that the current hotel operators can still participate in the upcoming auctions and retain their properties – provided they match the highest bid. There is nothing unfair in this. It ensures transparency, gives equal opportunity to all stakeholders, and most importantly, fetches the rightful economic value of public land. What is clearly unfair, however, is allowing the current leaseholders to continue enjoying Government property post lease expiry while depriving the exchequer of its legitimate income. Moreover, the illegal occupation of additional land by some hotels is tantamount to encroachment. These portions must be immediately reclaimed and put to public auction, especially in light of the restrictions on fresh development in the region. Every square foot of land in Gulmarg is valuable – environmentally, economically, and strategically.
The financial health of the UT depends on smart governance, especially in tourism and land management – two of its most potent revenue sources. The continued inaction by the administration is puzzling and deeply problematic. If the Empowered Committee constituted under the Rules is inactive, it reflects either bureaucratic inertia or deliberate delay. In either case, the Government must act decisively. A time-bound policy must be drafted and implemented to ensure that all expired leases are re-auctioned in a transparent manner, with special emphasis on evicting illegal occupants and retrieving encroached land.
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