Thiruvananthapuram: The UDF government’s maiden Budget presented by Chief Minister and Finance Minister V D Satheesan in the Kerala Assembly on Friday unveiled an ambitious “Land Reforms 2.0” agenda, proposing changes to land laws, title distribution, land acquisition and valuation systems to address long-standing structural challenges in the state.
The Budget announced that the government would formulate a comprehensive Land Management Policy aimed at tackling issues such as land scarcity, restrictions on land mobilisation and legal bottlenecks that have hindered development projects and investments.
As part of the reform package, a robust land management framework will be established through legislation to create a land bank by pooling surplus and unused land belonging to government departments and public sector undertakings.
The government also proposed a review and amendment of outdated land laws that are no longer relevant to present-day requirements. Procedures for converting land for commercial enterprises will be simplified and expedited, while a dedicated land pooling framework will be introduced for large-scale projects. Government agencies such as KINFRA and INKEL will be empowered to professionally manage land acquisition and related activities.
Fair value revision, stamp duty reforms
The Budget announced a comprehensive, technology-enabled revision of land fair values across Kerala. The exercise aims to correct anomalies where notified fair values are significantly higher or lower than prevailing market prices.
To address a large backlog of land undervaluation cases, the government will organise special adalats and implement dedicated measures to dispose of all pending appeals filed under Section 28A of the Kerala Stamp Act, 1959, by October 31, 2026.
A one-time settlement scheme with concessions will also be introduced to clear 1,46,355 undervaluation cases registered between 1986 and 2023, involving an estimated ₹703 crore in deficit stamp duty dues.
The Budget further proposed waiving additional stamp duty in pre-March 2010 cases where the final deficit duty determined is below ₹10,000.
To strengthen revenue recovery, unpaid deficit stamp duty amounts will attract interest at the rate of 1 per cent per month after 60 days from the final order. Such dues will also be treated as a charge on the concerned property.
Pattayam for coastal residents, hill farmers
The government announced that land titles (pattayam) would be issued to all coastal residents who do not currently possess title deeds.
The Budget also promised time-bound measures to resolve hurdles affecting pattayam distribution in hilly regions. The government said it would expedite the disposal of pending cases before the Supreme Court, the High Court and matters related to the 1964 Rules to facilitate title deed distribution to hill farmers.
In another significant announcement, the government said it would legally review the existing order prohibiting construction on cardamom patta land and regularise existing constructions on such land without conditions.
