KCCI Submits Representation Against Draft J&K Lease & Rent Policies, 2026
By: News Desk | 02 July 2026
The Kashmir Chamber of Commerce & Industry (KCCI) has formally submitted a comprehensive representation to the Housing & Urban Development Department, Government of Jammu & Kashmir, voicing strong objections to several provisions contained in the Draft Jammu & Kashmir Lease Policy, 2026 and the Draft Jammu & Kashmir Rent & Licensing Policy, 2026.
The Chamber has cautioned that the proposed framework, if adopted without revision, could have far-reaching consequences for commerce, tourism, and industry across the Valley, potentially destabilising sectors that form the backbone of the regional economy.
Key Concerns Highlighted by KCCI
- Lease Renewal Premiums:
- Proposal to levy a fresh premium of up to 150% of prevailing circle rate for renewal of commercial leases for a further 33-year term.
- KCCI termed this measure arbitrary and disproportionate, stressing that renewals are continuations of existing leases, not fresh allotments.
- The Chamber emphasised that original premiums and development charges were already recovered at the time of initial allotment.
- Freehold Conversion Charges:
- Commercial conversion charges proposed at significantly higher rates compared to residential conversions (3% of circle rate).
- Exclusion of older leaseholders from freehold conversion seen as discriminatory.
- Compensation & Construction Timelines:
- No provision for compensation for buildings constructed on leased land.
- One-year construction completion timeline deemed impractical given statutory clearance requirements.
- Rent Revision Cycle:
- Proposed five-year rent revision cycle under Rent & Licensing Policy described as inadequate for long-term business planning.
- KCCI recommends a minimum ten-year cycle to ensure stability.
Demand for Wider Dissemination & Stakeholder Participation
KCCI has urged the Government to ensure wider public dissemination of the Draft Policies, including publication in local and regional newspapers. The Chamber noted that a large section of the trading and business community remains unaware of the draft provisions and timelines for filing objections.
Accordingly, KCCI has requested an extension of the deadline for public submissions to allow meaningful stakeholder participation.
Impact on Key Sectors
The representation underscores that the majority of affected leaseholders are micro, small and medium enterprises (MSMEs), hoteliers, and tourism operators. These sectors collectively account for a significant share of employment in Jammu & Kashmir.
Given the Valley’s recurring economic disruptions, KCCI stressed that the policy must be calibrated with sensitivity to local conditions and avoid imposing disproportionate financial burdens on already fragile businesses.
Recommendations by KCCI
- Lease renewals to be premium-free.
- Freehold conversion charges capped at 5% of circle rate.
- Provision of fair compensation for constructed structures.
- Rent revisions phased over a minimum ten-year cycle.
- Benchmarking of final policy against comparable states such as Punjab, Haryana, Himachal Pradesh, and Delhi.
Call for Consultative Approach
The Chamber has urged the Government to adopt a consultative approach and convene a stakeholder meeting with the Department before finalising the policy.
KCCI emphasised that inclusive dialogue will ensure that the final framework is balanced, equitable, and conducive to sustainable economic growth in Jammu & Kashmir.
PRESS RELEASE
No: KCC&I/H/07/2026/5181 2ND JULY, 2026
The Kashmir Chamber of Commerce & Industry (KCCI) has formally submitted a detailed representation to the Housing & Urban Development Department, Government of Jammu & Kashmir, raising substantive objections to key provisions of the Draft Jammu & Kashmir Lease Policy, 2026 and the Draft Jammu & Kashmir Rent & Licensing Policy, 2026.
The Chamber has cautioned that the draft framework, if notified in its present form, could materially disrupt commerce, tourism and industry across the Valley.
The representation objects to the proposal to charge a fresh premium of up to 150 percent of the prevailing circle rate for renewal of commercial leases for a further 33-year term, which the Chamber has characterised as arbitrary and disproportionate to the nature of a renewal. KCCI has argued that renewal merely continues an existing, fully compliant lease and does not constitute a fresh allotment of Government land, given that the original premium and development charges were already recovered at the time of the initial lease.
The Chamber has further raised concern over the disproportionately high charges proposed for conversion of commercial leasehold properties into freehold, which significantly exceed the 3 percent of circle rate applicable to residential conversions, and has objected to provisions that would reportedly exclude existing leaseholders under older leases from freehold conversion altogether.
Additional objections outlined in the submission include the absence of compensation for buildings constructed on leased land, a one-year construction completion timeline considered impractical given the time required for statutory clearances, and a proposed five-year rent revision cycle under the Rent & Licensing Policy, which the Chamber has described as insufficient for long-term business planning.
Separately, KCCI has asked the Government to ensure wider public dissemination of the Draft Policies, including publication in local and regional newspapers, so that the stakeholders likely to be affected are adequately informed.
The Chamber has noted that a large section of the trading and business community remains unaware of the draft provisions and the timeline for filing objections, and has accordingly requested an extension of the deadline for public submissions to allow for meaningful stakeholder participation.
The representation notes that the majority of affected leaseholders are micro, small and medium enterprises, hoteliers and tourism operators, sectors that account for a significant share of employment in Jammu & Kashmir. It further highlights the region’s recurring economic disruptions as grounds for the policy to be calibrated with greater sensitivity to local conditions.
Among its key recommendations, KCCI has called for lease renewals to be made premium-free, freehold conversion charges to be capped at 5 percent of circle rate, fair compensation to be provided for constructed structures, and rent revisions to be phased over a minimum ten-year cycle. The Chamber has also recommended benchmarking the final policy against comparable states, including Punjab, Haryana, Himachal Pradesh and Delhi.
The Chamber has urged the Government to adopt a consultative approach and has requested a stakeholder meeting with the Department for further discussion before the policy is finalised.
Faiz Ahmad Bakshi
Secretary General
The Kashmir Chamber of Commerce & Industry INC.
2ND FLOOR, MOHIDIN TRUST BUILDING, RESIDENCY ROAD, SRINAGAR-KASHMIR-190001
TEL: 0194-2455446/2482176
FAX : 0194: 2452517
E-MAIL : thekashmirchamber@gmail.com
Website : www.thekcci.in
