Examiner News Desk | Srinagar:
The Kashmir Chamber of Commerce and 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.
The Chamber cautioned that the proposed policy framework, if notified in its present form, could have far-reaching implications for commerce, tourism and industry across the Union Territory.
Among its major concerns, KCCI opposed the proposal to levy a fresh premium of up to 150 per cent of the prevailing circle rate for the renewal of commercial leases for an additional 33-year term. The Chamber described the proposal as arbitrary, arguing that lease renewal is merely an extension of an existing agreement and should not be treated as a fresh allotment of government land, particularly when the original premium and development charges had already been paid.
KCCI also objected to the proposed charges for converting commercial leasehold properties into freehold, stating that they are significantly higher than the three per cent of the circle rate proposed for residential properties. It further expressed concern that holders of older commercial leases may be excluded from the benefits of freehold conversion under the proposed framework.
The Chamber highlighted several other issues in the draft policies, including the absence of compensation for buildings constructed on leased land, the proposed one-year time limit for completion of construction—which it termed impractical given the time required for statutory approvals—and a five-year rent revision cycle, which it said offers inadequate certainty for long-term business planning.
Seeking greater public participation in the policymaking process, KCCI urged the government to widely publicise the draft policies through local and regional newspapers. It said many members of the business community remain unaware of the proposed provisions and the deadline for submitting objections, and called for an extension of the consultation period to enable broader stakeholder participation.
According to the Chamber, the proposed policies would primarily affect micro, small and medium enterprises (MSMEs), hoteliers and tourism operators, sectors that play a vital role in employment generation and the regional economy. It also urged the government to factor in Jammu and Kashmir’s unique economic challenges while finalising the policy framework.
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 built on leased land, and rent revisions should be carried out at intervals of at least ten years. It also recommended benchmarking the final policies against similar frameworks in Punjab, Haryana, Himachal Pradesh and Delhi.
The Chamber has requested the Housing & Urban Development Department to hold a comprehensive stakeholder consultation before finalising the policies, stating that a consultative approach would help address the concerns of the business community while ensuring balanced and sustainable policy implementation.
