Haryana Enacts New Law to Facilitate Agricultural Land Leasing While Safeguarding Landowner Rights

The Haryana Legislature has enacted The Haryana Lease of Agricultural Land Act, 2024, which received the assent of the Governor of Haryana on December 3, 2024, and was subsequently published in the Official Gazette on December 19, 2024, thereby coming into force on that date. This significant legislation, designated as Haryana Act No. 23 of 2024, aims to establish a formal mechanism for the recognition and facilitation of agricultural land leasing across the state. The Act applies to all agricultural land under cultivation within Haryana, with specific exclusions for land owned by the Central or State Government, municipal bodies, Gram Panchayats, or land recorded as 'shamilat deh' or 'Jumla Malkan Wa Digar Haqdaran Arazi Hassab Rasad Raqba' (common purpose land). It introduces a structured framework for lease agreements, defining the rights and obligations of both lessors (landowners) and lessees (cultivators) and establishing clear procedures for dispute resolution.

Under the new Act, any person intending to lease agricultural land must enter into a written lease agreement, which is mandated to be registered in accordance with the provisions of the Registration Act, 1908. These agreements must specify details such as the names and addresses of parties, land reference details, lease period aligned with crop cycles, lease amount, payment dates, and conditions for renewal or premature termination. A crucial provision of the Act ensures that while the lease agreement and its period are to be entered in the remarks column of the Record of Rights, such an entry "shall not create any permanent tenancy or occupancy tenancy rights or otherwise under any State law for the time being in force." This directly addresses a long-standing concern among landowners regarding the potential loss of ownership rights when leasing out their land. The Act further stipulates that possession of the leased land shall immediately revert to the landowner upon the expiry or termination of the lease, without requiring any further action on the lessor's part.

The legislation provided: “AN ACT to provide a mechanism for recognition of leasing of agricultural land and to permit and facilitate lease of agricultural land, protecting the ownership rights of land-owners and for matters connected therewith and incidental thereto.” This core intent underpins the Act's provisions, which grant lessees the right to cultivate the land without interruption and to obtain crop loans from financial institutions without creating a permanent encumbrance on the land. Lessees are, however, prohibited from subletting the land (though engaging labour is permitted) or using it for non-agricultural purposes. The Act also outlines conditions under which lessees, with prior consent from lessors, can make improvements to the land for agricultural productivity, with provisions for deducting costs from lease money. In the event of damage to standing crops due to natural calamities, the lessee is entitled to receive compensation or relief provided under relevant schemes.

The Act establishes an exclusive dispute resolution mechanism, vesting jurisdiction with the Assistant Collector 1st Grade for initial applications, with an appeal lying to the Collector. These revenue officers are mandated to decide disputes within specified timelines, and civil courts are explicitly barred from exercising jurisdiction over matters concerning lease agreements made under this Act. The legislation also details various grounds for termination of lease agreements by either party, including non-payment of lease amount, misuse of land, or material breach of terms. In cases where a lessee fails to vacate the land after lease expiry or termination, the Assistant Collector 1st Grade is empowered to ensure the lessor's reinstatement of possession. The Act has an overriding effect over any inconsistent provisions in other State laws, though it clarifies that rights accrued, actions taken, or cases pending under prior laws will continue to be governed by those respective laws. This comprehensive framework aims to formalize agricultural land leasing, offering security to landowners and operational clarity to cultivators, thereby fostering agricultural investment and productivity in Haryana.

Keywords: Haryana, Agricultural Land Lease, Landowner Rights, Lessee Rights, Crop Loan, Dispute Resolution, Revenue Officers, Tenancy, Land Improvement, Haryana Act 2024

Geo Tags: India, Haryana District: Not Applicable