J&K High Court hearing on expired leases of Gulmarg hoteliers


Srinagar (J&K), Sept 18: The Jammu and Kashmir Government today told the High Court that there is no policy to reconsider lease extensions, leaving hundreds of expired properties across the Union Territory, including hotels in Gulmarg, at risk of being re-auctioned.

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Govt’s Stand in Court

The Government counsel informed the bench that the validity of amendments made to the J&K Land Grants Act is already under challenge in multiple petitions filed by hoteliers. He added that the Government is prepared to defend the case on merits, stressing there is no mechanism to re-examine expired leases.

The court recorded that while earlier proceedings were deferred on the expectation of a Government review, no such instructions now exist.

Legal Background

As per Rule 12 of the amended Land Grants Act, once leases expire, they must be re-auctioned, with the Deputy Commissioner authorised to issue auction notices. Hundreds of leases have already expired in Gulmarg, Pahalgam, Srinagar, Jammu, Katra, and Samba, and their fate depends on the outcome of the pending petitions.

Court’s Observation

Hearing a PIL on lease rights of Gulmarg hoteliers, the Division Bench of Chief Justice Arun Palli and Justice Rajnesh Oswal adjourned the matter for final arguments. The bench observed that the issue directly impacts the public exchequer and clarified that no further adjournments will be granted.

The court also directed both parties to calculate user occupation charges of hotels that continue to operate despite lease expiry, terming them as illegal occupants of public property.

Pending Investigations and Challenges

The Government submitted sealed communications regarding lease matters, which were returned by the court with directions to examine the issue comprehensively. Petitioners have challenged amendments brought through the J&K Reorganisation (Adaptation of State Laws) 2020 and SO 668 of 2022, arguing that powers under Section 96 of the Reorganisation Act were excessively delegated to the Central Government and are unconstitutional.

Hoteliers contend that these amendments undermine legislative authority and render Section 96 ultra vires to the Constitution. They have sought a declaration that the amendments to the Land Grants Act are illegal.

History of Lease Issues

Earlier, the Gulmarg Development Authority had admitted that most leases had expired and ground rent had not been collected. The High Court had taken a stern view on illegal retention of public property, noting that under SRO 580 of 1977, the maximum lease period was 40 years with no extension permissible.

  • Issue: Expired property leases across J&K, especially hotels in Gulmarg
  • Govt stand: No policy to reconsider lease extensions
  • Court: Adjourned for final hearing, no further delays
  • Legal challenge: Validity of amendments to Land Grants Act questioned
  • Implication: Hundreds of properties may face re-auction

Source: Agencies

Labels: J&K High Court, Land Grants Act, Gulmarg, Lease Extension

Tags: #JammuKashmir #HighCourt #LandGrantsAct #Gulmarg #LeaseExtension

Disclaimer: This article is a rewritten summary based on reporting by Agencies. Jammu News Portal does not assume responsibility for the accuracy of external content.

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