Summary of this article
Section 118 restricts any transfer of agricultural land to any non-Himachali.
State's socio-economic landscape has evolved since the last upgrade in 1972.
The proposed amendments have resulted in strong opposition.
The Himachal Pradesh government has introduced a bill in the state assembly that seeks to relax provisions related to the Tenancy and Land Reforms Act of 1972. This bill was introduced to simplify land acquisition rules for business, real estate, and cooperative business ventures.
What is Section 118?
As per the original Act, Section 118 restricts any transfer of agricultural land to any non-Himachali. Constructed properties of non-agricultural intent can be sold to non-Himachalis with explicit government permission. This provision ensures the protection of the land rights of native Himachalis and prevents outsiders from easily acquiring land.
The proposed changes are being laid out in the Himachal Pradesh Tenancy and Land Reforms (Amendment) Bill, 2025, to relax these safeguards.
If a cooperative is made up of farmers, it will no longer need a special permission under Section 118 to buy land. This will make it easier for these cooperatives to start projects and businesses together.
Finished houses and flats in Himachal can now be purchased or rented without Section 118 approval. Anyone who buys these properties later also won't need this permission.
This amendment aims to reduce paper and government delays for people and companies looking for business, real estate, or cooperative projects. This will fast-track the projects and also attract investments.
The government emphasizes that the state's socio-economic landscape has evolved since the last upgrade in 1972, and the existing framework is not serving the genuine investments. Hence, this bill came into force.
Government’s Rationale
As per the bill, the main objective is to facilitate ease of doing business, encourage cooperative models among farmers, and enable land use for non-agricultural activities to generate more revenue and raise incomes.
Exempting farmer-run cooperatives from Section 118's strict approvals, the state government argues it is a vital step in empowering these cooperatives to use land more liberally. For ventures like agro-processing, small-scale industries, and rural enterprises, this change can bring about a boost to local economies.
Similarly, allowing non-agriculturists to buy or lease constructed properties is seen as a measure to promote real estate, tourism, and settlement in the state. This sets them up to speed with broader future development goals.
Opposition and Concerns
The proposed amendments have resulted in strong opposition from several quarters of the state. Critics, including political parties and local interests, have warned that loosening Section 118 will open doors for outsiders and corporate entities to buy vast spaces of land, which will compromise the land security of the locals, farmers, and Himachali landowners.
They fear that this could erode Himachal's identity and lead to the displacement of small and marginal farmers. Environmentalists add that this liberation might accelerate construction in fragile hill terrain, which will increase risks of ecological damage, landslides, and disruption of traditional livelihoods.
If this amendment passes, it will mark one of the most significant relaxations of land-tendency laws in Himachal Pradesh. For cooperatives, developers, and investors, it opens possibilities for faster acquisition. This decision also concerns many due to the idea of outsiders acquiring land and diluting locals' rights.
