No policy for reconsideration of lease extension: Govt to HC

Hundreds of leased properties likely to be reauctioned

Excelsior Correspondent
SRINAGAR, Sept 18: As the Government has no policy for reconsideration of lease extension, hundreds of properties across Jammu and Kashmir whose leases have expired are likely to face re-auction.

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The fate of the hundreds of expired leased properties depends upon the outcome of the PIL and various litigations of Gulmarg hoteliers pending before the High Court.
The Government today informed the court that there is no such policy before the authorities to reconsider the issue. The Counsel said the Government defends the matter including challenge of validity of amended J&K Land Grants Act by the hoteliers in various petitions and is ready to argue it on merits.
“For we were informed on the previous date by learned Senior Counsel for the petitioner that even though these petitions are pending for years, but since the matter was being considered/examined by the Government, the proceedings were deferred. Today, however, Senior Counsel for the respondents submitted that he has no such instructions and is ready to argue the matter on merits”, read the Court order.
It is noted here that Rule 12 of in the amendment of Land Grants stated that after expiry of lease, such leases shall again be put to the auction as per the provision and the Deputy Commissioner shall be the authority for issuing the notice of Auction as per Form-II.
An official said that there are hundreds of properties in J&K whose leases have expired and their fate will depend on the outcome of Gulmarg hoteliers’ petitions pending before the Court.
The properties whose leases have expired are mostly in Gulmarg, Pahalgam, Srinagar, Jammu, Katra and Samba.
The HC observed that the issue involves the public exchequer and adjourned the Public Interest Litigation pertaining to the lease rights of hotels in Gulmarg tourist resort for final arguments after the Government submitted before the court that there is no such policy at present with the authorities for reconsideration of the issue.
It is noted that the Government has passed J&K Re-Organization (Adaption of State Laws) 2020 by virtue of which the amendment in the J&K Land Grants Act of 1960 stands carried through SO 668 of 2022 and its application to the lease hold rights enjoyed by the hoteliers through lease deed has been challenged by the hoteliers of Gulmarg in a batch of petition which are also pending before the court.
The counsel contended before the bench that the Government will defend the case and sought decision into the matter on merits. With these submissions, the Division Bench of Chief Justice Arun Palli and Justice Rajnesh Oswal adjourned the matter and clarified that the matter be heard and considered finally on next date of hearing without giving any adjournment into the matter.
Meanwhile, the court has observed that both the parties need to calculate the user occupational charges of the hotels post expiry lease as these hoteliers are under illegal occupation after expiry of lease. Sr. AAG Mohsin Qadri put some communication before the court in sealed cover which the court after perusal, handed over back with seal and asked the Government counsel to examine the issue in its entirety so that the court can passed some orders on the issue of expiry of leases.
The amendment as also the SO of 2022 have been challenged on the ground that Section 96 of the Reorganization Act has delegated legislative powers to the Central Government whereby the executive is conferred with such authority to make adaptation and modifications to law as specified in the schedule of the Act with the stipulated time period of one year from the appointed date.
The hoteliers submitted that the impugned legislative action of delegating the powers of the legislature to the Central Government is excessive in nature and beyond the Constitutional realm. “The operation of Section 96 legislative powers have been expressly granted to the Central Government in pursuance of which the amendments in the Land Grants Act have also been carried into effect and any deviation there form renders the validity of section 96 of the Act as ultra vires the Constitution”, read one of the grounds taken by the hoteliers.
The hoteliers prayed that Section 96 of the J&K Reorganization Act 2019 and the orders passed thereunder be declared as ultra vires to the Constitution and the J&K Adaption of State Laws 2020 to the extent of amendment in Land Grants Act 1096 be declared as unconstitutional and illegal.
It is noted that the Gulmarg Development Authority (GDA) in the month of November, 2019 had admitted before the court that most of the leases have expired and rent for several properties have not been recovered and till date the authorities at the helm of affairs have failed to deal with the illegal occupants of public property and the court had taken tough stand on retention and withholding of public property beyond time limit.
The SRO 580 of 1977 in vogue at that time also revealed that the maximum period for which a lease could be granted was 40 years and no extension beyond this period is permissible and the status report of CEO revealed that most of the leases granted to persons have expired and even ground rent has also not been received from the lessees.