The tea industry in Assam has formally requested the state government to engage in detailed discussions to resolve the significant financial and legal challenges anticipated from the implementation of the amended Land Ceiling Act. While planters have welcomed the initiative to grant land ownership to workers for housing, they emphasize the need to iron out practical difficulties before proceeding.
Core Concerns: Mortgages, Compensation, and Legal Obligations
The Consultative Committee of Plantation Associations (CCPA), the umbrella body for tea producers, has written to the Assam Chief Secretary outlining key apprehensions. A primary issue is that tea garden lands are often mortgaged with banks as collateral for loans. The CCPA stressed that any dilution of this mortgaged security would require the concurrence of the concerned banks, or it could trigger severe financial complications for the companies.
Furthermore, the industry body has sought appropriate compensation for the land to be distributed, under the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. They also request that management be absolved from statutory responsibilities of providing housing and welfare facilities in those specific areas once land ownership is transferred to workers.
Statutory Duties and Future Complications
Sandeep Singhania, President of the Tea Association of India (a CCPA member), highlighted a critical legal overlap. The Plantations Labour Act, 1951 (now part of the Occupational Safety, Health and Working Conditions Code) legally obligates employers to provide housing to workers. He maintained that unless this central law is amended, managements would remain responsible for housing even after the land is transferred, creating a dual liability.
The CCPA also warned that granting heritable and transferable land rights (patta) could lead to future problems, as the sale or purchase of such lands within estates could not be prevented, potentially affecting the contiguity and operational integrity of the tea gardens. They recalled that the state government had acknowledged this need for compactness in the 1994 Assam Panchayat Act in Tea Gardens.
Government Stance and Industry Appeal
The Assam Fixation of Ceiling of Land Holdings (Amendment) Act, 2025 was passed by the state assembly in November. It empowers the government to distribute land in tea estate labour lines to over 14 lakh people across 825 estates, covering approximately 72,248 acres. Chief Minister Himanta Biswa Sarma has stated the process has begun and warned that annual incentives of around Rs 150 crore to gardens could be reconsidered if owners create hurdles.
In response to the CM's warning, an industry source clarified that incentives are under separate, duly notified schemes and should not be linked to the Land Ceiling Act implementation. The planters' core appeal is for the government to address the complex web of financial, legal, and statutory issues through consultation before moving forward, ensuring the historic move benefits workers without jeopardizing the industry's viability.
