New land scam in Gujarat? Govt-owned leasehold lands up for grabs at concessional rates

The Gujarat government recently announced its decision to permanently allot leasehold government land and wasteland in city survey areas across districts in the state.

These lands, worth crores of rupees, have been leased to social and religious trusts, large industrialists, top officials, and politicians, as per reports. There are growing concerns that this land is being allotted at very low rates, leading to potential corruption amounting to crores of rupees.

The Gujarat government has decided that land will be allotted at different rates based on the nature of the lease–

If there is a legal lease of more than 30 years and it has been legally transferred, the allotment will be at 15% of the current jantri (government valuation) rate.

If land has only been leased (without legal transfer), it will be allotted at 30% of the jantri rate.

In cases where the lease has been illegally transferred, land will be given at 25% of the jantri rate.

If such land has only been leased (with no transfer), then it will be allotted at 50% of the jantri rate.

According to a resolution by the state revenue department, land valued up to ₹1 crore can be approved by the district collector. Proposals for land worth more than ₹1 crore must be sent to the state government for final approval. The resolution also states that applications must be made within two years, and stamp duty based on the jantri rate will be collected at the time of permanent allotment.

Although the government mentions that the lands are in “poor or disputed condition”, these plots have been in use for years and are, in fact, in good and usable condition, as per reports.

Usually, the government processes in such matters take years to complete. Surprisingly, in this case, a committee was formed in November 2023 to suggest amendments. The committee submitted its report by January 1, 2025, and the government implemented the recommendations and passed a resolution within less than four months.

The government of Gujarat can earn crores of rupees by cancelling the leases of the lands (bhada patta ni jamin) and selling these lands through public auction.

Instead, the government is providing the land to current occupants at concessional rates.

What’s more uncanny is that the rates are not even based on full jantri value, but rather on a maximum of 60% of jantri, which itself is usually four to five times lower than the market value. This means the land is effectively being sold for just 10% of its market value.

Land price depends on lease duration

In the case of short-term leases (7 to 30 years), the pricing is as follows:

For legal leases over 30 years with legal transfer: 20% of jantri rate.

For lease-only (no transfer): 40% of jantri rate.

For illegally transferred leases: 30% of jantri rate.

Lease-only and illegally transferred: 60% of jantri rate.

Additionally, if the holder belongs to SC, ST, or OBC communities, they will receive a further 20% concession.

Also read:

Non-agricultural land conversion made simpler in Gujarat, NA to be granted within 10 days