Land lease system being reformed to curb corruption

Bangla Press Desk: Citizens’ purchased properties (plots, flats, and land) are generally leased for 99 years. According to the terms of this lease deed, permission must be obtained from the leasing authority for inheritance, purchase, donation, or transfer of ownership; for transfer or cancellation deeds; and for taking loans against the property.

To prevent harassment, suffering, and corruption in this process, the government is now reforming the land lease system. Based on the opinions of leasing authorities and an inter-ministerial meeting, a subcommittee has made eight reform proposals, which have already been approved.

It has been learned that while landowners and property holders became hopeful upon hearing about the introduction of “permanent ownership deeds” (Saaf Kabala), many officials and employees of the concerned ministry’s institutions were alarmed by the news. In particular, many employees became uneasy after receiving the official letter.

The reason is that a large number of these employees are involved in irregularities and corruption, often taking bribes from service seekers by deliberately delaying files. Nearly every office peon in these institutions owns a plot or flat. In effect, corrupt officials and employees have taken the service seekers hostage. However, some officials believe that if the verification process is abolished, one person could easily sell a plot or flat owned by another.

Despite holding long-term leases, leaseholders face harassment at various stages due to the requirement for repeated approvals. This system has long created opportunities for irregularities and corruption in the concerned offices. Such harassment and exploitation have been continuing for years under the existing procedure.

Moreover, private land developers also harass buyers in the name of seeking approval for the resale of properties or flats sold through permanent deeds, extorting crores of taka in the process.

To free leaseholders from such harassment and corruption, the Ministry of Housing and Public Works has taken the initiative for reform. The ministry has already sought written opinions from various authorities, departments, and agencies under its jurisdiction on how to relieve leaseholders from these problems.

An inter-ministerial meeting was also held with representatives from the Ministry of Land, the Finance Division, the Law and Justice Division, and the Legislative and Parliamentary Affairs Division. Additionally, four committees were formed, comprising representatives from the ministry and relevant leasing authorities, which made eight key recommendations.

The Eight Recommendations

Cancel the existing approval system. The current practice of requiring approval from the leasing authority is not supported by any law, rule, or regulation; it is only a condition included in lease agreements. To prevent widespread harassment and corruption, this practice should be abolished. However, the existing procedure will remain for changes in plot size through consolidation or for changes in the use category of plots or flats.

Maintain revenue collection. For authorities operating with self-financing, 2% of the deed value for land, flats, or buildings, and 3% for land transfers should be collected through the Sub-Registry Office in favor of the concerned authority, department, or agency. Similarly, for plots or flats under the Ministry of Housing and Public Works or the Public Works Department, the amount should be collected as Non-Tax Revenue (NTR).

Financial independence of development authorities. Like local government institutions, development authorities should receive 1% of all deeds registered within their jurisdiction through the Sub-Registry Office to ensure financial stability.

Submission of deed copies. In the case of lease property transfers, a certified copy of the registered deed must be submitted to the leasing authority within 90 days. Failure to do so will result in a fine of Tk 50 per day, up to a maximum of Tk 10,000. The responsible officer must update records within 30 days of receiving the deed or mutation copy; otherwise, disciplinary action will be taken for negligence of duty.

Abolish the 99-year lease renewal and transfer fees. Typically, leases are granted for 99 years. After this period ends, the renewal procedure and name transfer or handover fees will be abolished.

Maintain approval for certain cases. Approval from the leasing authority will still be required for residential, institutional, commercial, and industrial plots, flats, or land where ownership disputes exist or where plots or flats have been allocated under special consideration between January 2009 and July 2024.

Resolve ownership disputes. Once ownership disputes are resolved, the existing approval process for name transfer and handover of such plots, flats, or houses will be abolished. Properties listed as “abandoned” through gazette notifications will remain as such until disputes are settled.

Protect buyers from harassment by private developers. Private land developers must be prevented from harassing buyers or extorting money under the pretense of granting approval for resale of land or flats sold through permanent deeds.

BP/SP