Bengal reviews leasehold land use from TMC era, may cancel misused leases
Synopsis
Key Takeaways
The West Bengal Land and Land Revenue Department has launched a comprehensive review of leasehold land allotted to private entities during the previous Mamata Banerjee-led All India Trinamool Congress (TMC) government, examining whether such parcels were used for their sanctioned industrial purposes or left idle. The review, confirmed by a senior department official on 31 July, marks the current administration's first formal audit of inherited land-lease commitments.
Why the Review Was Ordered
According to a senior officer from the department, the audit has two distinct objectives. The first is to determine whether leasehold land has been put to the industrial use for which it was originally granted — or whether it has remained unused for an extended period.
'In case of total non-utilisation of the land for the project it was being taken for, the state government might take back the land from the individual or entity to whom the land was given on leasehold, so that the same land could be allotted to any other party for industrial project purposes,' the official said.
For cases of partial utilisation, the department intends to seek clarification on project timelines on a case-by-case basis and may impose realistic deadlines for completion.
Penalties for Unauthorised Land Use
The second objective targets a separate category of concern: leasehold land that was reportedly diverted to uses not sanctioned under the original lease agreement, without prior approval from the competent authority.
'Clarification would be sought from the individual or entity to whom the land was given on why that land was utilised for a non-scheduled purpose. Thereafter, the state government will evaluate such cases and consider imposing a financial penalty and even cancellation of the lease,' the official said.
The department noted that multiple instances of such unauthorised diversion had come to its notice, prompting the structured review.
West Bengal's New Land Policy Backdrop
The audit sits within a broader shift in how West Bengal approaches land acquisition for industry. The state has recently adopted a direct land-purchase policy, under which the government buys land directly from original owners before transferring it for infrastructure or industrial use — a departure from leasehold models that critics argue created ambiguity over utilisation obligations.
Alongside this, the government has signalled its intent to repurpose land held by closed industries and unused leasehold parcels for fresh industrial allotments. The current review is described by officials as 'the first step on this count.'
What Happens Next
Depending on audit findings, outcomes could range from lease cancellations and financial penalties to fresh allotments of recovered land to new industrial applicants. The department has not yet disclosed a timeline for completing the review or the total quantum of leasehold land under scrutiny. Industry stakeholders and entities that received leasehold allocations during the previous TMC tenure are expected to be contacted for documentation and clarification as the process advances.