Kerala government struggles to recover lease arrears

15 Nov 2023 CW Team

A breakdown of the lease arrears reveals that Thrissur (Rs 1.65 billion), Ernakulam (Rs 1.10 billion), and Thiruvananthapuram (Rs 1 billion) collectively account for over 85% of the outstanding amount. The stay situation is particularly grim in these three districts, with 100% of the arrears under stay in Thrissur, 98% in Ernakulam, and 76% in Thiruvananthapuram. In contrast, the lease arrears in Kottayam, Pathanamthitta, Idukki, Palakkad, Malappuram, Wayanad, and Kasaragod are relatively meager, and no amount is under stay.

A comprehensive audit by the Comptroller and Auditor General (CAG) uncovered multiple irregularities and negligence in the assignment, registry, and leasing of government land. The audit report, accessed by The Times of India, highlighted non-compliance with land assignment rules, improper maintenance of land records, rent waivers leading to financial losses, land allotment to ineligible individuals, and inadequate monitoring of leased and assigned land.

The audit revealed that between 2017 and March 31, 2022, 6,410 hectares (15,840 acres) of land were assigned on registry to 33,808 beneficiaries, while 776 hectares (1,917 acres) were leased to 2,920 beneficiaries. The audit further noted that lease rents were not being revised as per the stipulated periodicity, nor were they being collected regularly, resulting in significant revenue losses for the government. Moreover, the government failed to take punitive measures, such as resuming possession of land in cases of default by beneficiaries.

Another critical finding of the land audit was the waiver of lease rents for land provided to clubs and other agencies, causing immense financial losses to the government. Out of the 1,183 lease cases examined in selected districts, the audit found that 51 lease cases amounting to Rs 1.66 billion were under stay orders from various courts, with some stays extending up to 23 years. This highlights the laxity of revenue authorities in getting these stays vacated.

The Kerala government is already struggling to recover over Rs 80 billion in revenue dues from individuals and organizations. The additional burden of Rs 4.36 billion in lease arrears further exacerbates the state's financial woes. Prompt action is required to streamline the land assignment and lease processes, address the stay orders, and collect the outstanding lease arrears to ensure that the government can effectively utilize its land resources for the benefit of its citizens."

The Kerala government is grappling with a hefty sum of Rs 4.36 billion in lease arrears, owed by individuals and organizations that are using government land on lease. This substantial amount, if recovered, would provide much-needed relief to the financially strained government. However, a staggering 88.90% of this amount is under stay from the court and the government, hindering its collection for several years.A breakdown of the lease arrears reveals that Thrissur (Rs 1.65 billion), Ernakulam (Rs 1.10 billion), and Thiruvananthapuram (Rs 1 billion) collectively account for over 85% of the outstanding amount. The stay situation is particularly grim in these three districts, with 100% of the arrears under stay in Thrissur, 98% in Ernakulam, and 76% in Thiruvananthapuram. In contrast, the lease arrears in Kottayam, Pathanamthitta, Idukki, Palakkad, Malappuram, Wayanad, and Kasaragod are relatively meager, and no amount is under stay.A comprehensive audit by the Comptroller and Auditor General (CAG) uncovered multiple irregularities and negligence in the assignment, registry, and leasing of government land. The audit report, accessed by The Times of India, highlighted non-compliance with land assignment rules, improper maintenance of land records, rent waivers leading to financial losses, land allotment to ineligible individuals, and inadequate monitoring of leased and assigned land.The audit revealed that between 2017 and March 31, 2022, 6,410 hectares (15,840 acres) of land were assigned on registry to 33,808 beneficiaries, while 776 hectares (1,917 acres) were leased to 2,920 beneficiaries. The audit further noted that lease rents were not being revised as per the stipulated periodicity, nor were they being collected regularly, resulting in significant revenue losses for the government. Moreover, the government failed to take punitive measures, such as resuming possession of land in cases of default by beneficiaries.Another critical finding of the land audit was the waiver of lease rents for land provided to clubs and other agencies, causing immense financial losses to the government. Out of the 1,183 lease cases examined in selected districts, the audit found that 51 lease cases amounting to Rs 1.66 billion were under stay orders from various courts, with some stays extending up to 23 years. This highlights the laxity of revenue authorities in getting these stays vacated.The Kerala government is already struggling to recover over Rs 80 billion in revenue dues from individuals and organizations. The additional burden of Rs 4.36 billion in lease arrears further exacerbates the state's financial woes. Prompt action is required to streamline the land assignment and lease processes, address the stay orders, and collect the outstanding lease arrears to ensure that the government can effectively utilize its land resources for the benefit of its citizens.

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