The Kerela government is facing a financial setback as lease arrears totalling Rs 436 crore remain unrecovered due to legal complications, with 88.90% currently under court-ordered stay. Thrissur, Ernakulam, and Thiruvananthapuram contribute to over 85% of the outstanding amount. An audit by the Comptroller and Auditor General (CAG) revealed irregularities in land assignments and leasing practices, including non-compliance with rules, non-maintenance of land lists, lapses in monitoring leased and assigned land, and a significant monetary loss due to the waiver of lease rent for certain entities. Resolving legal hurdles and streamlining land management practices are crucial for revenue recovery.
In a financial setback for the cash-strapped government, lease arrears totalling Rs 436 crore are yet to be recovered from individuals and organizations utilizing government land. These arrears, which could provide much-needed relief to the government, are entangled in legal complications, with a staggering 88.90% currently under court-ordered stay. According to data obtained by TOI, Thrissur (Rs 165.53 cr), Ernakulam (Rs 110.73 cr), and Thiruvananthapuram (Rs 100.04 cr) collectively contribute to over 85% of the outstanding amount. However, the situation is even more dire in these three districts, with 100% of arrears under stay in Thrissur, 98% in Ernakulam, and 76% in Thiruvananthapuram. The lease arrears issue is not only a financial concern but also involves serious irregularities in land assignments and leasing practices, as revealed by an audit conducted by the Comptroller and Auditor General (CAG). The audit uncovered numerous illegalities and oversights in the assignment and leasing of government land, totalling 6,410 hectares assigned on registry to 33,808 beneficiaries and 776 hectares given on lease to 2,920 beneficiaries from 2017 to March 31, 2022. The audit highlighted non-compliance with rules governing land assignment, non-maintenance of land lists, and lapses in monitoring leased and assigned land. It further revealed that lease rents were not regularly collected or revised as per existing rules, resulting in a loss to the exchequer. The government's failure to take punitive measures for defaulting beneficiaries, such as resuming the land, was also noted. Additionally, the audit identified a significant monetary loss to the government due to the waiver of lease rent for land allocated to clubs and other entities. Out of 1,183 lease cases in selected districts, 51 cases totalling Rs 166.71 crore were under court-ordered stay, some lasting up to 23 years, indicating a lack of initiative on the part of revenue authorities to lift these stays. As the government grapples with recovering over Rs 8,000 crore in revenue from individuals and organizations, the pending lease arrears underscore the urgency for resolving legal hurdles and streamlining land management practices. This story was earlier published in Times of India
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