Srinagar, July 2: The Kashmir Chamber of Commerce & Industry (KCCI) has submitted a detailed representation to the Housing & Urban Development Department, raising strong objections to several provisions of the Draft Jammu & Kashmir Lease Policy, 2026, and the Draft Jammu & Kashmir Rent & Licensing Policy, 2026.
The Chamber has cautioned that, if notified in their current form, the proposed policies could have significant adverse implications for commerce, tourism and industry across Jammu & Kashmir.
At the centre of KCCI’s concerns is the proposal to impose a fresh premium of up to 150 per cent of the prevailing circle rate for the renewal of commercial leases for another 33-year term. The Chamber described the proposal as arbitrary and disproportionate, arguing that lease renewal merely extends an existing, compliant lease and should not be treated as a fresh allotment of government land.
According to the representation, the original leaseholders had already paid the required premium and development charges at the time of the initial allotment, making an additional premium at the renewal stage unjustified.
KCCI has also objected to the proposed charges for converting commercial leasehold properties into freehold, stating that they are significantly higher than the three per cent circle rate applicable to residential conversions. It further expressed concern over provisions that reportedly exclude existing leaseholders under older lease agreements from the freehold conversion process.
The Chamber highlighted several other issues in the draft policies, including the absence of compensation for buildings constructed on leased land, a one-year construction completion deadline that it termed impractical due to lengthy statutory approval processes, and a proposed five-year rent revision cycle under the Rent & Licensing Policy, which it said would undermine long-term business planning and investment certainty.
In its representation, KCCI also urged the government to ensure wider public dissemination of the draft policies by publishing them in local and regional newspapers, arguing that a large section of the business community remains unaware of the proposed provisions and the deadline for submitting objections.
The Chamber has requested an extension of the public consultation period to enable broader stakeholder participation before the policies are finalised.
KCCI noted that the proposed policies would primarily affect micro, small and medium enterprises (MSMEs), hoteliers and tourism operators, sectors that collectively generate substantial employment in Jammu & Kashmir. It also pointed to the region’s repeated economic disruptions in recent years, urging the government to frame the policy with greater sensitivity to prevailing local conditions.
Among its recommendations, the Chamber has proposed that commercial lease renewals should not attract any fresh premium, while freehold conversion charges should be capped at five per cent of the prevailing circle rate. It has also sought fair compensation for structures built on leased land, a minimum ten-year interval for rent revisions, and benchmarking of the final policy against similar frameworks in states such as Punjab, Haryana, Himachal Pradesh and Delhi.
The Chamber has urged the government to adopt a consultative approach and convene a meeting with stakeholders before finalising the policies.
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