Himachal Pradesh Government Proposes Amendment to Land Purchase Regulations

The Himachal Pradesh government has introduced a significant amendment Bill aimed at easing land purchase restrictions for societies formed by Himachali residents. This legislative change seeks to eliminate the need for Section 118 approval, facilitating business growth and economic development in rural areas. Additionally, amendments to municipal acts are proposed to enhance urban governance stability. The Assembly is set to discuss these Bills in detail, promising to address long-standing bureaucratic hurdles. Discover more about the implications of these reforms in the full article.

By Narendra Chaudhary Dec 2, 2025, 15:50 IST

Significant Legislative Changes in Himachal Pradesh

DHARAMSHALA: On December 2, 2025, the Himachal Pradesh government presented a significant amendment Bill in the Vidhan Sabha aimed at modifying restrictions under Section 118 of the Tenancy and Land Reforms Act, 1972. Revenue Minister Jagat Singh Negi introduced the Bill, which seeks to exempt societies made up entirely of Himachali residents from needing Section 118 approval for land purchases.

Currently, even societies or companies established by Himachalis are required to obtain approval under Section 118, which poses challenges for business growth, especially in rural regions. The proposed amendment aims to eliminate this obstacle, promoting smoother economic and developmental activities across the state.

Key Features of the Amendment

• Exemption from Section 118 for societies exclusively formed by Himachalis.
• RERA and HIMUDA flats can be sold before completion, with an extended deadline for obtaining completion certificates.
• Commercial entities operating under the overdraft system will now be permitted to deposit double the previous amount.

The government asserts that these reforms will facilitate local entrepreneurs and cooperatives in expanding without bureaucratic delays, addressing long-standing issues related to land approvals.

Amendments to Municipal Acts

In addition to this Bill, the government has also proposed amendments to the Himachal Pradesh Municipal Corporation Amendment Bill and the Himachal Pradesh Municipalities Amendment Bill.

Proposed Changes Include:
Extending the reservation roster cycle for Mayor and Deputy Mayor positions from two to three years.
Amendments aimed at streamlining urban local body elections and rectifying discrepancies in ward delimitation and reservation processes.

The government believes these reforms will enhance urban governance stability and minimize frequent changes caused by shorter reservation cycles. The Assembly is anticipated to engage in discussions and pass the Bills following thorough deliberation.