Srinagar, Mar 17: The Jammu & Kashmir Waqf Board has firmly rejected allegations surrounding the leasing of Waqf land in Sumbal, describing the claims as misinformed and devoid of factual basis. In a press release, the Board asserted that the process adopted represents one of the most transparent and revenue-optimised administrative interventions in recent years.
According to officials, the allegations that the orchard was “secretly leased without advertisement or tender” are factually incorrect and misleading. Official records and on-ground verification show that the Board followed a documented and publicly verifiable process. Advertisements were issued through newspapers — copies of which are available with this publication — the same channels used for official notifications. In addition, the notice was uploaded on the Board’s official website (www.jkwaqfboard.com) to ensure wider outreach and participation. Officials said such digital disclosure mechanisms represent a progressive transparency measure that was not practiced earlier,it said.
“The decision to lease a portion of the orchard, officials said, was the outcome of a detailed administrative and financial review aimed at addressing the long-standing decline of the property. Spread across 692 kanals, the orchard has suffered significant deterioration over the years, with hundreds of trees becoming unproductive annually and several patches turning disease-prone, at times posing risks even to adjoining private orchards,” said the press release.
To address the situation, the Board identified 159 kanals of barren and least productive land for long-term leasing and divided it into four separate orchard patches to promote diversification and wider investor participation. Officials said this approach aligns with established horticultural and financial management practices, it added.
Documents reviewed by this publication indicate that the financial framework introduced by the Board marks a substantial departure from earlier arrangements. For the land designated for high-density plantation, the Board fixed a base lease rate of Rs 25,180 per kanal per year with a 5% annual escalation, significantly higher than the prevailing private rate of around Rs 15,000 per kanal.
Additionally, the Board introduced a premium component of Rs 1 lakh per kanal, amounting to approximately Rs 1.59 crore for 159 kanals as upfront revenue. Since this amount represents only the base premium, the final revenue gains are expected to be higher depending on bidding outcomes. Officials described this premium-based leasing model as unprecedented in Kashmir’s orchard leasing ecosystem and a structural reform aimed at enhancing Waqf revenues by ensuring both upfront capital inflow and sustained annual income, said the statement. The remaining 533 kanals of the orchard have been placed under a three-year auction framework. According to officials, the previous auction for 692 kanals over three years generated Rs 2 crore. With the current auction covering 23 percent less land, the adjusted expected base value was estimated at Rs 1.44 crore.
However, the Board introduced another major reform by shifting operational expenditures to the contractor for the first time. Under the new arrangement, the contractor will bear the costs of fertilisers, pesticides, oil, pruning, machinery, labour and other operational inputs — expenses that were previously borne by the Waqf Board. These expenditures were estimated at over Rs 21 lakh annually, amounting to Rs 63 lakh over three years, and had been a major factor contributing to the orchard’s deteriorating condition.
Taking these factors into account, officials said the realistic base price could have been around Rs 81 lakh for three years. Nevertheless, the Board fixed the base price at Rs 1.15 crore, significantly higher than financial projections, reflecting an effort to maximise the value of the public asset. Officials indicated that the final revenues secured are substantially higher than this base figure.
“Financial records also reveal that over the past seven years the average annual income from the entire 692-kanal orchard stood at around Rs 64 lakh, while nearly 60 percent of this amount was spent on operational expenses, leaving a net annual return of roughly Rs 30 lakh. Officials described this model as structurally unsustainable due to high expenditure, staffing limitations and inadequate maintenance,” it added.
Under the new leasing framework, if applied to the entire 692 kanals, the Board estimates that the orchard could generate approximately Rs 7 crore in upfront revenue, along with around Rs 2 crore in annual recurring income with a 5 percent escalation, without requiring the Board to incur operational costs.
Officials said this represents a significant improvement in financial efficiency, transforming a low-yield, high-expenditure asset into a sustainable revenue-generating resource for public welfare. The Board also manages thousands of kanals of orchard land across Kashmir, many of which are reportedly in poor condition and generating heavy losses annually. According to internal records reviewed by this publication, revenues from conventional fruit auctions often fail to cover even the salaries of staff in the Board’s horticulture wing. In light of these details, officials said the allegations circulating in certain quarters stand completely discredited. They maintained that every step — from advertisement to financial structuring — was conducted in accordance with established procedures. According to officials associated with the Board’s orchard wing, the Sumbal initiative represents a significant institutional reform that combines transparency, fiscal prudence and long-term asset optimisation. By introducing premium-based leasing, digital disclosures and a rationalised financial structure, they said the Board has set a new benchmark for Waqf property management in Jammu & Kashmir. Officials directly managing the Orchard on ground added that what has been portrayed as a controversy is, in fact, a reform-driven initiative designed to safeguard and strengthen Waqf assets for future generations, the press release further added.
