Friday, April 19, 2024

Govt plans to make lease agreement mandatory

Date:

Chandigarh, January 4:  After 132 years, the state is all set to shed an important legacy of the British Raj. The state Revenue Commission has proposed its own Punjab Land Leasing and Tenancy Bill, which seeks to secure the ownership of land owners and provide security of tenure to tenants.

The draft Bill, Punjab Land Leasing and Tenancy Bill, 2019, prepared by the Revenue Commission headed by Justice SS Saron (retd), paves the way for legalising leasing of land for agriculture purpose for a period of less than one year to a maximum of 15 years. Once enacted, the Bill seeks to make it mandatory for lease agreements to be made for land.

“In the state, where large tracts of agriculture land are now tilled by lessees rather than land owners, especially in the NRI belt of Doaba, the legalising of land leases will be a game-changer. Prohibitions and restrictions under the existing state laws governing agricultural land leasing have forced landowners and lessee cultivators to have informal agreements only for cultivating land and thereby deprived the lessee cultivators of the benefits that were normally due to them,” Justice Saron told The Tribune here today.

“The draft law seeks to create security among landowners to lease out agricultural land and will ensure that land left fallow by NRIs in the Doaba region for the fear of losing ownership rights to lessees will be put to use,” added the commission chairman. Formalising lease agreements will also provide landless farmers a means of livelihood and access to bank credit and insurance cover.

As per the draft Bill, which is now in the public domain, the land owner will be entitled to receive the possession of the leased land, minus any encumbrances accrued by the lessee during the period of lease, on the termination of the lease. The draft Bill is clear that leasing of land shall now affect the ownership rights or mortgage rights of the owner during the period of lease. As per the existing laws framed in 1887, the occupancy rights by tenants for up to 20 years allowed them some proprietary rights on the land.

The draft Bill also protects the lessee as it makes clear that even in cases where the land is sold, there is redemption in mortgage, succession or land is gifted or transferred, the lessee will continue to be in the possession of the leased land till the expiry of the lease period. In cases where land owner fails to make any disclosure, it entitles the tenant to terminate the lease and claim compensation from the owner. The lessee will have to pay the rent as either agreed upon in the lease or on June 1 and December 1 during the entire period of lease. In case of death of the tenant, his heir shall be the lessee or can opt out of the agreement after paying the lease money till the end of the agriculture year.

Source Tribune India

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