Kashmir Chamber Seeks Changes to Draft Lease, Rent Policies; Flags Impact on Trade, Tourism
SRINAGAR: The Kashmir Chamber of Commerce & Industry (KCCI) has submitted a detailed representation to the Housing & Urban Development Department, Government of Jammu & Kashmir, raising objections to several provisions of the Draft Jammu & Kashmir Lease Policy, 2026 and the Draft Jammu & Kashmir Rent & Licensing Policy, 2026.
In its submission, the Chamber said the draft framework, if notified in its present form, could adversely affect commerce, tourism and industry across the Valley.
Among its principal objections, KCCI opposed the proposal to levy a fresh premium of up to 150 per cent of the prevailing circle rate for renewal of commercial leases for a further 33-year term. The Chamber termed the proposal arbitrary, arguing that renewal merely extends an existing lease that has remained compliant with its conditions and should not be treated as a fresh allotment of government land, as the original premium and development charges had already been paid at the time of allotment.
The Chamber also objected to the proposed charges for conversion of commercial leasehold properties into freehold, stating that they are substantially higher than the three per cent of circle rate proposed for residential conversions. It further expressed concern over provisions that, according to the representation, would exclude holders of older commercial leases from eligibility for freehold conversion.
KCCI highlighted several other issues in the draft policies, including the absence of compensation for buildings constructed on leased land, a one-year construction completion period which it described as impractical in view of the time required for statutory approvals, and a proposed five-year rent revision cycle under the Draft Rent & Licensing Policy, saying the provision does not provide adequate certainty for long-term business planning.
The Chamber also urged the government to ensure wider public dissemination of the draft policies through publication in local and regional newspapers so that all affected stakeholders are informed. It said a significant section of the trading and business community remained unaware of the draft provisions and the deadline for submitting objections, and requested an extension of the public consultation period to facilitate broader stakeholder participation.
According to the representation, the proposed policies would primarily affect micro, small and medium enterprises, hoteliers and tourism operators, sectors that contribute substantially to employment in Jammu and Kashmir. It also referred to the region’s recurring economic disruptions and called for the policy framework to take local conditions into account.
Among its recommendations, KCCI proposed that commercial lease renewals should not attract any fresh premium, freehold conversion charges should be capped at five per cent of the circle rate, compensation should be provided for structures constructed on leased land, and rent revisions should be undertaken over a minimum ten-year cycle. It also suggested that the final policy be benchmarked against comparable frameworks in Punjab, Haryana, Himachal Pradesh and Delhi.
The Chamber has requested the Housing & Urban Development Department to hold a stakeholder consultation before finalising the policies, saying a consultative approach would help address concerns of the business community while ensuring balanced policy implementation.
