Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Jun 26: The state government is facing a deep financial crisis and dismal cash crunch. With no other avenue in sight to recover from this situation, it has been planning to sell government land.

A number of companies and institutions have taken government land on lease for multifarious purposes. Organizations and institutions have taken government land on lease to run schools, colleges, religious trusts etc. The government has realized that these lands cannot be taken back. At present, a system of annual or periodical renewal of lease is in vogue.

Law minister Madhuswamy, said at the cabinet meeting on Thursday June 25, that the government proposes to sell this land to the lessees instead of renewing the lease during this year.

A large number of leased government lands are being renewed for a pittance in many cases. Now the lessees are being offered the choice to acquire the land by paying the present market price. The government knows that the current system of lease does not bring it money as the lease is renewed periodically at a fraction of the lease rate for private properties. Therefore, the government feels that it can recoup the losses in revenue to some extent by selling the land at the guidance prices.

The government will ask those who have taken the land on lease to buy the land. If they are reluctant to buy, the land has to be given back to the government. The cabinet meeting has taken a decision not to renew the land leases falling due during the next year. Discussions on the pros and cons of such a measure have begun among the people and political parties. At the same time, the government wants to sell only certain pieces of land which have been chosen as per its discretion.