Jammu and Kashmir's apex trade bodies have raised strong objections to the proposed J&K Lease Policy, 2026 and Rent & Licensing Policy, 2026, warning that several provisions could adversely impact businesses, tourism and investment, while urging the government to extend the deadline for public objections and hold wider stakeholder consultations before finalising the policy.
The Kashmir Chamber of Commerce and Industry (KCCI) and the Chamber of Commerce and Industry (CCI), Jammu, have separately submitted detailed representations to the Housing and Urban Development Department, flagging what they described as onerous financial provisions, inadequate consultation and procedural shortcomings in the formulation of the draft policies.
KCCI, in its representation, cautioned that the proposed framework, if notified in its present form, could materially disrupt commerce, tourism and industry across Jammu and Kashmir.
The Chamber objected to the proposal of charging a fresh premium of up to 150 per cent of the prevailing circle rate for renewal of commercial leases for another 33 years, describing it as arbitrary and disproportionate.
KCCI argued that lease renewal merely extends an existing, fully compliant lease and does not amount to a fresh allotment of government land, as the original premium and development charges had already been paid at the time of allotment.
It also opposed the proposed charges for converting commercial leasehold properties into freehold, saying they are disproportionately higher than the three per cent circle rate proposed for residential properties. The Chamber further objected to provisions that reportedly exclude holders of older commercial leases from freehold conversion.
Other concerns flagged by KCCI include denial of compensation for structures built on leased land, a one-year construction completion deadline which it termed impractical given the time required for statutory approvals, and a proposed five-year rent revision cycle, saying it would adversely affect long-term business planning.
The Chamber has also urged the government to publish the draft policies in local and regional newspapers and extend the deadline for filing objections, noting that a large section of the business community remains unaware of the proposed changes.
KCCI President Javid Ahmad Tenga said the draft policy, in its present form, required wider consultation to ensure it addressed the realities of Jammu and Kashmir's economy.
"The objective of any policy should be to encourage enterprise, investment and employment, not create uncertainty for businesses that have operated on government leasehold land for decades. We have requested the government to adopt a consultative approach, extend the timeline for public feedback and address genuine concerns of stakeholders before the policy is finalised. A balanced policy will safeguard government interests while protecting businesses that contribute significantly to the Union Territory's economy," Tenga said.
Among its recommendations, KCCI has sought premium-free lease renewals, a cap of five per cent of the circle rate for commercial freehold conversion, fair compensation for existing structures, a minimum ten-year rent revision cycle and benchmarking of the policy with similar frameworks in Punjab, Haryana, Himachal Pradesh and Delhi.
Meanwhile, the Chamber of Commerce and Industry, Jammu, also sought a 30-day extension for submitting objections, alleging that the notification, though dated June 5, became available to the public only on June 17 and was published in newspapers on June 18, leaving stakeholders with insufficient time to study the draft.
CCI Jammu President Arun Gupta said the proposed policy would affect thousands of traders, hoteliers, industrial units, property owners, tenants and employees, making wider public consultation imperative.
He said the Housing and Urban Development Department should have consulted trade bodies and stakeholder organisations before drafting the policy and subsequently published the complete draft in newspapers instead of limiting its availability largely to the department's website.
Gupta also pointed to technical issues on the department's website that allegedly prevented stakeholders from downloading the policy documents, making it difficult for many to file objections.
While welcoming certain relief proposed for residential leaseholders, Gupta described the denial of freehold conversion for commercial lease properties as unjustified.
"Commercial leaseholders were allotted undeveloped land after paying substantial premiums to the government. They invested heavily in developing these properties, constructed permanent structures, generated employment and raised loans from banks. Treating them as having no rights over these properties is unfair. The government must remember that these are small traders, not large corporate houses," he said.
CCI Jammu also objected to the proposed 150 per cent premium for lease renewal, the high charges for commercial freehold conversion, denial of compensation for buildings on leased land, the one-year construction timeline and the proposed five-year rent revision cycle, urging the government to revise the draft after meaningful consultations with stakeholders.