Kerala's Rs 408 Crore Land Lease Dues Trapped in Court Stays, Hindering Recovery
Kerala's Rs 408 Crore Land Lease Dues Trapped in Court Stays

Kerala's Massive Land Lease Dues Largely Frozen by Court Stays

In a significant blow to state revenue mobilization efforts, over 95% of lease dues payable to the Kerala government by private individuals and organizations allotted government land are currently entangled in court stays. This legal gridlock is severely constraining recovery efforts and weakening the state's financial position.

Staggering Figures Reveal Recovery Challenges

According to the latest revenue department data, the total lease dues to be recovered stand at a substantial Rs 408.53 crore. Of this massive amount, a staggering Rs 390.81 crore is under court stay, leaving the government with very limited scope for immediate recovery. This means that less than 5% of the total outstanding amount is currently legally recoverable without navigating complex legal hurdles.

Poor Recovery Even from Non-Stayed Amounts

The situation becomes even more concerning when examining the recovery rate from amounts not constrained by legal obstacles. Of the remaining due amount of Rs 17.72 crore that is theoretically recoverable, the government has collected only Rs 3.17 crore so far, representing a mere 17% recovery rate. This leaves Rs 14.55 crore still pending from what should be the most accessible portion of the outstanding dues.

District-Wide Disparities in Pending Dues

A district-wise breakdown of the legally recoverable amount reveals significant disparities across Kerala:

  • Thiruvananthapuram leads with Rs 8.08 crore in pending dues, representing the highest amount among all districts
  • Malappuram follows with Rs 1.93 crore pending
  • Alappuzha has Rs 1.15 crore outstanding
  • In the remaining districts, the dues are comparatively marginal, running into only a few lakhs

Contrasting Enforcement Actions Across Districts

Enforcement action in terms of notices and lease cancellations presents a contrasting picture that raises questions about administrative consistency. Pathanamthitta recorded the highest number of notices issued for lease dues, with 163 notices served to defaulters. This district also saw the highest number of lease cancellations due to accumulation of arrears, with 104 lease cases terminated for non-payment.

Interestingly, despite having the highest pending recovery amount, no lease cases were cancelled in Thiruvananthapuram so far, though 27 notices were issued to defaulters. This discrepancy suggests varying approaches to enforcement across different administrative regions within the state.

Litigation Lock and Administrative Questions

The figures clearly underline that the bulk of arrears is effectively locked up in litigation, with dues under stay accounting for an overwhelming share of the outstanding amount. This legal bottleneck has created a significant barrier to revenue collection that cannot be easily overcome through standard administrative measures.

Furthermore, the low recovery rate even in cases free from legal constraints raises serious questions about administrative seriousness in pursuing revenue collection. The 17% recovery rate from non-stayed amounts suggests either inadequate follow-up mechanisms, insufficient enforcement resources, or possibly both.

Potential Solutions Under Consideration

Meanwhile, the revenue department has proposed a one-time settlement of lease dues, structured as an amnesty scheme to encourage defaulters to come forward and clear their outstanding amounts. This proposal remains under consideration by the finance department, awaiting a final decision that could potentially unlock some of the frozen revenue.

Until a decision is taken on this settlement proposal, and unless the legal bottlenecks are addressed through either court resolutions or legislative measures, a significant portion of the Rs 408.53 crore in outstanding lease dues is likely to remain beyond the government's immediate reach, continuing to strain state finances and revenue projections.