99-year contract to no longer exist: Government land to be leased for only 12 years; applies to currently leased land also

THIRUVANANTHAPURAM: The move to end the system of leasing government land for up to 99 years is underway. The state government has formulated a draft bill to reduce the lease period to a maximum of twelve years. If this becomes law, it will also apply to land that has already been leased. However, it will not apply to large plantations that have been leased since the royal period.

The new policy will apply to government-owned land as per the Land Registry Act of 1964 in rural areas and as per the Act of 1995 in the municipal and corporation sectors.

The Comptroller and Auditor General had pointed out that more than Rs 1,000 crore in lease arrears are yet to be collected in Kerala. The government often collects a small amount by giving a discount on the arrears. The lease amount is also reduced. The current system charges 0.5 percent to 5 percent of the market value of the land based on the use of the leased land. The government assesses that the arrears are increasing due to the high market price being used to determine the lease amount. The lease party will be divided into two groups: government and non-government institutions, and those with income and those without income. It is indicated that this will also be a criterion in determining the lease amount.

Lease payments can be collected without incurring arrears

• With the digital payment system, lease payments can be collected safely and in a timely manner.

• Officials can accurately assess information regarding lease renewals and arrears. An electronic lease register will be possible since the records of all government lands are available on the ReLIS portal.

• The minimum lease period is one day and the maximum is 12 years. A maximum of five years of lease will be granted to private institutions and others and it can be extended up to five times.

• One-fourth of the annual lease amount must be paid first if the lease period is three months. In cases up to one year, the entire amount for one year must be paid.

• Leases are granted to government departments, semi-government, local bodies, cooperative institutions, private institutions and private individuals.

50 times the land tax

The basic lease rate (BLR) is 50 times the current land tax as per the Kerala Land Tax Act, 1961. The same rate is currently applicable in all local body limits. However, since the land tax is now different in gram panchayats, municipalities and corporations, the lease rate will also vary accordingly.

"Currently, the lease rate is the same for all land. The amendments are being brought to determine the amount according to the classification and to avoid the accumulation of rent arrears."

-K. Rajan,

Revenue Minister