Kerala all set to launch One Time Settlement scheme to recover ₹700 cr land lease arrears

The Kerala Revenue Department is preparing to introduce a one-time settlement scheme aimed at recovering over ₹700 crore in outstanding lease arrears from government-owned land. The scheme will provide lessees with discounts ranging from 25% to 50% on their total dues. However, large-scale plantations with leases predating the formation of Kerala will not be eligible.

The arrears stem from a diverse range of lessees – individuals, firms, organizations, and institutions – who lease land for various purposes, including agriculture and commercial ventures. While annual lease rates are linked to land market value (currently 0.5% to 5%), rising real estate prices have made these rates unsustainable for many, leading to significant arrears. The Comptroller and Auditor General (CAG) has previously flagged the issue of unrecovered arrears.

Currently, Ernakulam district accounts for the highest amount of arrears at ₹280 crore, while Idukki district has the most cases, totaling ₹6 lakhs. The land is leased under the Land Assignment Rules of 1964 (rural areas) and 1995 (urban areas), requiring upfront payment for the first year and subsequent payments before April 30th annually, with interest and potential lease cancellation for non-compliance.

(Source：Onmanorama)