Why Karnataka plans to reclaim 7,500 acres of forest land leased out since British era

The Karnataka government is mulling measures to reclaim 7,500 acres of forest land that was leased to various plantation companies during the British era.

The Karnataka Forest Department also aims to recover pending dues from numerous coffee, tea, and rubber plantation companies operating on forest lands. They owe a whopping Rs 2,000 crore in pending dues to the state government. These well-established companies are engaged in coffee, tea, and rubber cultivation on forest land across Kodagu, Chikkamagaluru, Chamarajanagar, and other districts of Karnataka. These dues have been accumulating since Independence, raising concerns about the exploitation of forest resources without adequate compensation, according to an IFS official of the department.

“The activities of these companies in the forest land are posing a hindrance to the smooth movement of wildlife. Elephants have been freely roaming in Tamil Nadu, Kerala, Karnataka, and Maharashtra for centuries through these areas commonly referred to as the 'Elephant Corridor'. There is a legal battle underway to reclaim this land and expand the forest area,” he told The Federal.

Internal study

The department’s internal study not only revealed the massive outstanding amount but also explained the historical context of the issue. More than 7,500 acres of forest land were granted to various companies and individuals during British rule on leases extending for 99 years. Despite the nominal fees, some companies have neglected their financial obligations for decades, even after Independence.

The government will follow all necessary procedures to facilitate the recovery of dues, said a department official. To expedite the revenue recovery process, a special team has been constituted under BP Ravi, the principal chief conservator of forests. This team aims to streamline the recovery efforts and ensure that the companies responsible for the dues pay the outstanding amounts promptly, said Karnataka Forest Minister Eshwar Khandre.

However, some individuals have already moved court. A special team will be formed to legally contest all these cases. The collection of all pending dues, fines, and interest will be initiated within a year, Khandre said.

Legal cell

A legal cell is also being set up to facilitate swift legal action against the defaulting companies. Khandre emphasised the importance of legal proceedings to resolve the pending cases efficiently. This move is expected to bring accountability to the companies that have neglected their financial obligations to the department for an extended period, he said.

The department’s efforts to recover these outstanding amounts have faced legal challenges. In 1997, the land revenue rate increased from Rs 2,000 to Rs 5,000 per hectare. The companies contested this increase, leading to prolonged legal battles. These companies have not paid the dues for decades, and the department has initiated the process of recovering the outstanding amount before renewing the forest land leases.

Outstanding amount

Specific details of the outstanding amounts provided by the department include Mercara Rubbers Ltd in Virajpet, Kodagu (Rs 454 crore), Thompson Rubber India Limited (Rs 91.29 crore), Neelgiri Plantation Limited (Rs 130.22 crore), and Port Land Rubber Estate Limited (Rs 536.66 crore), until 2022. Apart from these, Glen Lauren Plantation Private Limited and Tata Coffee Limited collectively owe Rs 524 crore in dues, fines, and penalties.

The report also highlighted a unique case involving Halle Plantation Limited, which had taken a loan against the forest land, and due to non-repayment, the bank seized the land. This case raises questions about the financial practices of these companies and their accountability towards environmental conservation.

The road ahead involves legal battles, negotiations, and proactive measures to safeguard the state's rich biodiversity. The outcome of these efforts will not only impact the financial health of the Forest Department but also contribute significantly to the larger discourse on environmental conservation and corporate responsibility, the minister stated.