Uttar Pradesh Nazul Property Bill, 2024

Reference

Recently, the Uttar Pradesh Nazul Property (Management and Use for Public Purpose) Bill, 2024, passed by the Uttar Pradesh Legislative Assembly, has been referred to the Select Committee by the Uttar Pradesh Legislative Council.

About Nazul Land

• Nazul land refers to ‘land owned by the state government but not administered directly as state property throughout the state’.
• It also includes all properties for which lease, licence or possession is granted under any law declared by the government through notification.
• These lands are spread across several cities in Uttar Pradesh where people have settled after getting lease renewal (lease period can be from 15 to 99 years).
• For example, Prayagraj city has about 71 lakh sqm of Nazul land.

About Uttar Pradesh Nazul Property Bill

• The Uttar Pradesh Nazul Property (Management and Use for Public Purpose) Bill, 2024 was passed in the monsoon session of the UP Legislative Assembly on July 31, 2024.
  • Earlier on March 7, 2024, the Uttar Pradesh government had issued an ordinance regarding Nazul land.
• The purpose of this bill is stated to be to streamline Nazul land management and prevent unauthorized privatization.

Key provisions

• According to this bill, after the implementation of the law, no Nazul land will be transferred full ownership in favour of any private person or private institution.
• Instead, this land will be used for public purposes.
• Any court proceedings or applications to transfer Nazul land to private individuals or entities will be quashed and it will be ensured that these lands remain under government control.
• If any money has been deposited in this regard, it will be refunded at the interest rate of State Bank of India’s Marginal Cost of Funds Based Lending Rate (MCLR) from the date of such deposit.
• It also empowers the government to extend lease for existing lessees who pay rent regularly and comply with the terms of the lease.

Issue of controversy

• The controversy over the Bill is mainly due to the provision that allows the government to continue or terminate existing leases based on compliance with the lease conditions.
• The Bill provides that all existing Nazul land leaseholders must provide details about their land and building use compliance to the District Magistrate within three months of the enactment of the Bill.
• Failure to submit this information may have adverse consequences with regard to the extension of the lease. The Bill also provides that after the lease period expires, the land will be repossessed by the State Government.