Uttarakhand Congress on Saturday raised questions over the Pushkar Singh Dhami-led BJP government's plan to lease out about 7,000 bighas of land to private investors for 90 years, terming the move detrimental to the state's interests.
State Congress president Ganesh Godiyal and the party's 'Chargesheet' Committee Chairman Karan Mahra said at a press conference here that the government intends to benefit major corporate houses by handing over the state's prime government land to private entities.
Mahra accused the chief minister of acting like a "property dealer," stating that the government has created a land bank comprising approximately 7,000 bighas of vacant or underutilised government land belonging to various departments.
Congress alleges land lease plan favours corporate houses
The Congress alleged that these lands are intended for commercial use, including hotels, luxury resorts, villas, commercial townships, wellness centres, and private schools.
According to Mahra, the proposed arrangement would also permit the sub-leasing of the leased land and allow it to be mortgaged to secure bank loans.
He stated that conditions for eligible companies include an annual turnover of at least Rs 500 crore over the past three years, a minimum net worth of Rs 60 crore, experience in operating at least 1,000 rooms in the premium hospitality sector, and a presence in over 25 countries or a tie-up with an international five-star brand.
Mahra noted that the terms stipulate the payment of only 25 per cent of the prescribed amount within 30 days, with the remaining 75 per cent to be deposited over the next 10 years.
He alleged that these conditions were framed to benefit large corporate houses.
Mahra also questioned the decision to determine the lease rent for commercial land based on the circle rates applicable to agricultural land, stressing that this could result in a massive revenue loss for the state exchequer.
The Congress leader also questioned whether the 90-year lease could pave the way for converting the land into freehold property in the future.
Opposition raises concerns over local land rights
Leader of the Opposition Yashpal Arya, who was also present at the presser, alleged that the government is disregarding the rights of local people regarding water, forests, and land.
Questioning the formation of the Uttarakhand Investment and Infrastructure Development Board, he alleged that it is being used to hand over the state's prime land to corporate houses.
Citing the George Everest Estate in Mussoorie, Arya pointed out that tourism facilities were developed there at a cost of crores of rupees using an Asian Development Bank loan; subsequently, approximately 142 acres of land and the developed facilities were handed over to a private operator for 15 years at an annual license fee of around Rs 1 crore. He also raised questions regarding alleged business ties between the companies that participated in the tender and the fact that some competing firms later became shareholders in the winning company.
One bigha is approximately 2,529 square meters.