Uttarakhand Passes Land Reform Bill to Regulate Non-Resident Land Ownership

1. Recently, the Uttarakhand Legislative Assembly passed a significant amendment to the land ownership law, reshaping the future of land transactions in the state.
2. The Uttarakhand (Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950) Amendment Bill, 2025, aims to protect local interests, restrict land acquisition by outsiders, and address land misuse across the hill state.

Background: Evolving Land Laws in Uttarakhand

1. Since its formation in 2000, Uttarakhand has operated under the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950, albeit with several amendments tailored to the state’s unique geographic and socio-economic realities.
2. The first notable restriction came in 2003 under then Chief Minister N. D. Tiwari, who imposed limits on non-residents buying land in the hill areas.
3. This was designed to preserve the rights of local communities and safeguard the region's ecological and cultural landscape.
4. Subsequent governments modified these provisions. Notably, state government reduced the maximum permissible area for residential land purchases by non-residents from 500 square metres to 250 square metres.
5. However, in 2017, state government lifted the 12.5-acre ceiling on land acquisition for tourism, industry, and education, triggering widespread protests and accusations of facilitating land grabs.
6. In response to growing public discontent, the state government constituted a land reform committee in 2021, which submitted its recommendations in 2022. The 2025 amendment is a direct outcome of this process.

Current Context: Key Provisions of the Amendment Bill, 2025

The 2025 Amendment introduces sweeping changes aimed at restoring limits on land purchases, tightening oversight, and promoting sustainable development. Its provisions focus on four primary objectives:

1. Preserving Local Interests: Protecting agricultural and horticultural land from non-resident acquisition to preserve local identity and livelihoods.
2. Curbing Land Mafias: Preventing speculative and fraudulent purchases by powerful external entities.
3. Ensuring Sustainable Development: Regulating industrial and commercial expansion to maintain ecological balance.
4. Strengthening Land Governance: Centralizing land-related approvals and improving land record transparency.

Major Provisions at a Glance

1. Ban on Non-Resident Purchases in Hill Districts: Non-residents are now barred from purchasing agricultural and horticultural land in 11 out of Uttarakhand’s 13 districts.

• Only Haridwar and Udham Singh Nagar—identified as industrial hubs—are exempt, but transactions there require state government approval and land essential certificates.

2. 12.5 Acre Ceiling Reinstated: The amendment reintroduces the original 12.5-acre ceiling on land acquisition for tourism, industrial, educational, and other purposes across the 11 restricted districts.

• Additional land can only be obtained with prior approval from the state government.

3. 250 sqm Residential Cap: Non-residents may purchase up to 250 square metres of land for residential use, provided they submit an affidavit stating that they or their family own no other residential land in Uttarakhand beyond this limit.
4. Three-Year Usage Mandate: Land acquired for commercial, industrial, or institutional use must be utilized within three years. Failure to do so will render the transaction void, with land reverting to state ownership.
5. Digital Transaction Records: A dedicated digital portal will record all land transactions involving outsiders, enhancing transparency and deterring unauthorized dealings.
6. 30-Year Leasing Provision: The law permits leasing of agricultural, horticultural, or renewable energy land for up to 30 years, raising concerns about potential loopholes for external control despite ownership restrictions.
7. Centralized Approval Mechanism: District Magistrates will no longer have the authority to approve large-scale land purchases; such powers are now centralized with the state government to ensure consistency and oversight.
8. Land Use Regulation in Urban Areas: In municipal zones, land use must conform strictly to designated categories. Violations will result in forfeiture of the land to the state.