Section 118 of the HP Tenancy and Land Reforms Act :

There are a number of misconceptions attached to Section 118 of the HP Tenancy and Land Reforms Act. There’s no ban on purchase of land in the hill state, there are strict restrictions.

Section 118 does not put an absolute ban on the sale and purchase of land and property in Himachal. It restricts the transfer of land to a person who is not an agriculturalist of the state, including even the non-agriculturalists of the state. Section 118, however, has provisions through which, with the approval of the government, one can buy both land and property in the state.

Permissions required :

There’s no permission required to buy/lease a built-up property in the area falling within a municipal corporation, municipal committee, notified area committee and cantonment boards. One can also buy land/plot in the urban areas from the Himachal Pradesh Housing and Urban Development Authority and other government agencies. Again, no permission is required here either.

But what about buying land outside municipal limits, all of which is designated as agricultural land in the Act? “Section 118 doesn’t prohibit but regulates the sale of agricultural land. A non-agriculturalist needs to apply, state the purpose for which he wants to buy the land, and the government takes a decision on his request within a set time-frame,” adds the bureaucrat. “People are granted land for varied purposes, ranging from setting up an industrial unit, educational institution, tourism, etc. Also, people can get up to 4 acres of land to practise agriculture, and a maximum of 500 square metres for residential purposes.”

The permission is granted only if the government is satisfied with the stated purpose behind buying the land and the individual’s ability and background to carry out the project. While the bureaucrat claims the permission is generally granted, one needs to take the assertion with a pinch of salt. 

“Permissions are not denied generally at the secretariat and Cabinet level. But many applications are rejected at the entry-level (DC office), where they are scrutinised for documents and NOCs. It’s quite a cumbersome and time-consuming process,” says a property dealer who liaises with the authorities on behalf of his clients for permissions under 118. “For commercial projects, permissions are relatively easier. But for residential purposes, the process is more arduous and time-consuming.”

Idea behind Section 118 :

Come to think of it, a too lenient approval system would defeat the whole purpose behind inserting Section 118 in the HP Tenancy and Land Reforms Act in 1972. The Section was included to avoid the accumulation of land in the hands of a moneyed few, and prevent alienation of agriculturalists from their land. “Section 118 became mandatory for Himachal because there’s limited agricultural land because of mountainous terrain, and consequently landholdings, too, are small. Besides, back in 1972, when the clause was inserted, the state’s economy was entirely dependent on agriculture and horticulture. In this backdrop, transfer of land to non-agriculturalists would not only have hurt the farmers, but also the economy of the state.

Even today, close to 90 per cent of the state’s population lives in villages and is engaged in agriculture and allied activities. Agricultural land continues to be scarce, and close to 60 per cent of landholding is less than 6 bighas. With no protection, won’t these marginal farmers, when in distress, be susceptible to sell their land. For weaker and backward sections, protection is needed. A similar law ensures that no outsider, including the Himachalis, can buy land in the tribal district of Kinnaur.

Discontent within state :

Even as there’s general consensus across party lines in the state on the utility and continuity of Section 118, the non-agriculturalist Himachalis do harbour discontent. Section 118 equates them with non-agriculturalists from outside the state, and hence they need to follow the same procedure as any other person from outside the state to buy land.

The Section, however, allows the transfer of land to landless labourers, landless persons belonging to Scheduled Castes and Scheduled Tribes, village artisans and a few others. “There should have been a clause in Section 118 to safeguard the interests of landless Himachalis who have been residing here before 1972 .Those residing here before the Act was amended should not have been debarred from buying land. It has made several people second class citizens in their own state. It’s something people want the government to look into if ever any amendment is made to the Act.

 Section 118 is necessary :

Agricultural land continues to be scarce in Himachal, and close to 60 per cent of landholding is less than 6 bighas. With no protection, won’t these marginal farmers, when in distress, be susceptible to sell their land.

118 is regulatory :

Section 118 doesn’t prohibit but regulates the sale of agricultural land. A non-agriculturalist needs to apply, state the purpose for which he wants to buy the land, and the government takes a decision on his request within a set time-frame.

In News Recently :

The Section 118 of Himachal Pradesh has suddenly come into focus of regional politics. Section 118 of Himachal land tenancy provides restrictions on buying of agricultural land by non-agriculturists in the state. Only bona fide Himachalis with agricultural background can buy land in the state.

However, after the abrogation of Article 370 in Kashmir, the alliance partner of BJP in Punjab. Akali Dal president Sukhbir Badal said that Section 118 of Himachal is discriminatory in nature and should be abolished. The statement was resented by the leaders in Himachal Pradesh, as they feel all states should make such laws to protect their farmers. 

The first chief minister of the state Dr Y.S. Parmar has brought about the legislation of Section 118, sensing that the precious land of the state would be very vulnerable to land mafia and wealthy people outside.Though amendments have been made to Section 118 of Tenancy and Land Reform Act to facilitate industrial growth and investment, it is a contentious issue, which is politically volatile.

In recent time chief minister Jai Ram Thakur has rolled out the online module of permissions under section 118 of HP Tenancy and Land Reforms Act, 1972 starting from Mandi. THis module would go a long way in speedy disposal of section 118  cases. State govt. has not made any changes or amendments to section 118 but was only in favour of making the process a bit simple and transparent. The clearances of section 118 have now been made online so that the people could get it done at the earliest.