Jammu Kashmir High Court Closes Gulmarg Lease Case as Hoteliers Opt for Talks with Government | Kashmir Life

SRINAGAR: The High Court of Jammu Kashmir and Ladakh has disposed of a batch of petitions related to the contentious Gulmarg land lease issue after petitioners, primarily hoteliers, sought to withdraw their pleas and pursue an administrative resolution with the government.

A Division Bench comprising Chief Justice Arun Palli and Justice Rajnesh Oswal allowed the withdrawal, noting that the petitioners intended to approach the administration with formal representations to settle the dispute amicably.

The decision brings to a close a nearly four-year-long legal battle over the fate of hotel properties built on leased government land in Gulmarg, one of India’s winter destinations. The matter had reached an advanced stage of hearing, with arguments from both sides already concluded and a verdict expected imminently.

During the final hearing, senior counsel Zaffar Ahmad Shah, appearing for the petitioners, requested permission to withdraw the cases. The government, represented by Additional Advocate General Mohsin Qadri, did not object and informed the court that it was open to a “fair, reasonable and equitable” resolution. He assured that any representations submitted within two weeks would be considered after granting the petitioners a hearing.

Taking note of the submissions, the Bench observed that considerable judicial time had already been invested in the proceedings and that the matter would likely have been concluded but for the changed stance of the parties. The court said there was no need to examine the merits of the case in view of the withdrawal and disposed of the petitions accordingly. Several connected contempt petitions were also closed as infructuous.

The dispute stems from the introduction of the JK Land Grant Rules, 2022 by the Union Territory administration, which marked a significant shift in land policy. The new framework ended the earlier practice of automatic lease extensions and user rights, mandating that expired leases be put to public auction through open bidding.

This policy change has had a major impact in Gulmarg, where almost all hotels are constructed on government-leased land. Of the 59 hotels in the resort, leases of at least 55 have expired, placing them at risk of eviction or auction.

Officials have maintained that all such properties must revert to the government upon expiry of lease agreements, warning that failure to vacate could invite eviction proceedings. This has led to widespread concern among hoteliers, who argue that the move threatens long-standing investments and livelihoods.

Gulmarg, located at an altitude of over 8,500 feet in north Kashmir’s Baramulla district, is a central pillar of the Valley’s tourism economy. Spread across a meadow of roughly three square kilometres and framed by the Pir Panjal range, it attracts a significant share of visitors to Kashmir.

Tourism department figures indicate that the resort has consistently drawn over a million tourists annually in recent years, accounting for a substantial portion of overall tourist inflow into the region.

The hospitality sector in Gulmarg is deeply intertwined with local livelihoods. Thousands of workers, including hotel staff, guides, skiers, and service providers from surrounding areas such as Tangmarg and Baramulla, depend on the industry. Stakeholders have warned that large-scale auctions without safeguards could disrupt employment and local economic networks.

The controversy intensified following enforcement actions against some legacy properties. The historic Nedous Hotel, one of Gulmarg’s oldest establishments dating back over a century, was sealed by authorities earlier after its lease was deemed expired and renewal claims rejected.

Gulmarg’s land regime has historically been unique, with no private land ownership and all property held by the government and leased to users. Earlier lease arrangements often extended up to 99 years with provisions for renewal, but the 2022 rules reduced lease terms and introduced eligibility conditions that could disqualify many existing lessees from participating in auctions.

Hoteliers have argued that the retrospective application of new rules undermines decades of investment, particularly in a region that has witnessed prolonged periods of instability affecting tourism.

With the legal route now closed, the focus shifts to administrative engagement between the hoteliers and the government. The administration has indicated willingness to examine representations and explore a balanced solution.

The outcome of these discussions is expected to be crucial for the future of Gulmarg’s hospitality sector, which remains a cornerstone of Kashmir’s tourism-driven economy.