Land Scams in Himachal Pradesh

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Himachal Pradesh’s unique topography and limited cultivable land have led to strict regulations on land ownership. The Himachal Pradesh Tenancy and Land Reforms Act, particularly Section 118, prohibits non-agriculturists (typically non-Himachalis) from purchasing agricultural land. While designed to preserve local interests, this provision has inadvertently encouraged a shadow economy of benami transactions, fraudulent certificates, and bureaucratic collusion.

Over the past decade, a series of land scams, unauthorized real estate developments, and manipulation of revenue records have raised serious questions about enforcement, political will, and systemic accountability.

Real estate developers have frequently used local proxies to purchase land, violating Section 118 by executing deals in the names of local farmers or residents.

• A 2025 case near Kasauli saw 90 luxury flats, worth nearly ₹200 crore, built on benami land. Investigations found non-Himachalis acquired 45 bighas using fraudulent documents.
   
• In Solan district, hundreds of similar deals were traced back to organized developer networks that acquired land with fake farmer certificates.
   
• In another case, a man used a forged Krishak Pramaan Patra (farmer certificate) to purchase land in Palampur. Authorities revoked the mutation and issued notices to the patwari involved.
   

These transactions often remain undetected for years until complaints or vigilance inquiries surface. The use of poor villagers as paper owners remains a common method for large land grabs.

The state has witnessed an explosion in unauthorized constructions, particularly in urban fringes and tourist towns like Shimla, Dharamshala, and Palampur.

• By 2017, the government recorded over 25,000 unauthorized structures, many outside designated planning areas.
   
• Laws were amended to regularize these, but constructions on encroached land or forest land were excluded.
   
• In the wake of deadly monsoon floods in 2023, experts highlighted how unchecked construction on steep slopes and dumping of debris into rivers aggravated landslides and flooding.
   

The illegal conversion of agricultural or forest land into commercial plots and guesthouses remains a major contributor to ecological instability.

One of the most troubling patterns has been the encroachment of forest land, especially by orchardists and real estate agents under the guise of horticulture.

• In districts like Shimla, Kinnaur, and Kullu, wealthy growers and builders have been found illegally occupying dozens of hectares of forest land.
   
• These lands are then claimed under the Forest Rights Act, even though they were cleared and developed in violation of environmental laws.
   
• In one case, the High Court directed the Enforcement Directorate to prosecute holders of over 10 bighas of encroached forest land under anti-money laundering laws.
   
• Official data shows that over 18,000 encroachment cases on forest land were recorded in the past two decades, covering nearly 5,700 hectares — only a portion of which has been reclaimed.
   

Even in tribal areas, the misuse of ‘nautod’ allotments and attempts to acquire Scheduled Area land for hotels or resorts have led to resistance from local communities.

Many land scams have involved fraudulent mutations, backdated sales, and forged ownership documents with active participation — or at least negligence — by government officials.

• In a notable case from Palampur (2024–25), 101 kanals of land were transferred using a fake death certificate. The woman named as deceased was found alive in Punjab. Six individuals posed as heirs to claim and sell the land.
   
• Another case in Chamba involved deliberate tampering of plot numbers to undervalue land and cheat the government of stamp duty. The revenue officials, including the then-tehsildar and two kanungos, were named in an FIR.
   
• In some cases, revenue officials processed mutations within days, without verification or serving notice to the existing occupants, indicating clear administrative connivance.
   

These frauds often come to light years later, leaving the rightful owners with lengthy legal battles to recover their property.

Various governments and courts have attempted to address these issues through administrative action and legislative changes:

• Illegal structures have been regularized under specific conditions, though many remain in violation.
   
• Enforcement agencies have seized benami assets and registered criminal cases against officials and developers involved in fraudulent transactions.
   
• High Courts have repeatedly directed authorities to act against encroachers and penalize public servants complicit in record tampering.
   
• In 2024, vigilance inquiries were launched in several districts, and revenue officers were suspended or transferred in connection with mutation fraud and misuse of land titles.
   

Despite these actions, opposition parties and civil society groups argue that enforcement is sporadic and often influenced by political patronage.

 Land scams in Himachal Pradesh — particularly in connection with real estate development — reflect a deeper administrative malaise. While Section 118 was designed to protect the state’s agrarian identity and fragile ecology, it has also created perverse incentives for fraud and corruption. Developers, aided by intermediaries and complicit officials, continue to circumvent legal restrictions with impunity.

Encroachments on forest land, fake ownership documents, forged certificates, and the weaponization of bureaucratic loopholes have become common features in Himachal’s land landscape. Without structural reforms, digital land records, stricter audits, and depoliticized enforcement, the damage to both public trust and the environment will only deepen.