Tea companies in Assam have urged the state government to initiate discussions to resolve financial and legal issues linked to granting land rights to tea garden workers under the amended Assam Fixation of Ceiling of Land Holdings Act.
Industry representatives said they support the government’s intention to allow workers to build houses within tea estate areas. However, they stressed the need for clear guidelines on how the policy will be implemented on the ground.
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Planters Seek Legal and Financial Clarity
A tea planter told PTI that estate owners remain open to transferring land where labour quarters exist. However, they want the government to address existing legal obligations and financial risks before moving forward.
Planters pointed out that tea estate managements must still provide housing under the Plantations Labour Act. This law now forms part of the central Occupational Safety, Health and Working Conditions Code. Until the Centre amends these statutory provisions, employers must retain control over labour lines, industry leaders said.
CCPA Flags Key Obstacles
The Consultative Committee of Plantation Associations (CCPA), which represents major tea producers, has written to the Assam chief secretary outlining several challenges.
The committee highlighted that large portions of tea estate land remain mortgaged to banks and financial institutions. Any land transfer would require prior consent from lenders, making the process complex.
The CCPA also warned that granting patta, or ownership rights, would create heritable and transferable titles. This could lead to future land sales and fragmentation of tea estates, affecting their long-term viability.
Demand for Compensation and Relief
Industry representatives have sought fair compensation under the Land Acquisition Act, 2013, for any land transferred to workers. They have also asked the government to relieve employers of welfare and housing responsibilities for land that no longer remains under estate ownership.
In its letter, the CCPA added that labour quarters and other company-built structures require separate valuation. The land acquisition law covers land but does not automatically account for constructed assets.
Concerns Raised at Industry Meeting
Tea Association of India president Sandeep Singhania echoed these concerns during the 50th Biennial General Meeting of the CCPA. He said pledged lands remain vulnerable and exposed to financial risk.
Singhania also stressed that state-level legislation does not override central labour laws. Without amendments to central statutes, employers would continue to bear housing responsibilities even after land transfer.
Government’s Stand and Legislative Background
The Assam Legislative Assembly passed the Assam Fixation of Ceiling of Land Holdings (Amendment) Act, 2025, in November. The law aims to bring around 2,18,553 bighas, or nearly 72,248 acres, across 825 tea estates under its scope.
The government has said the move will benefit more than 14 lakh tea garden workers living in labour colonies across Assam.
Chief Minister Himanta Biswa Sarma has stated that the land acquisition process has already begun. He earlier warned that the government could withdraw around Rs 150 crore in annual incentives if companies resist the policy or approach the courts.
Industry Responds to Incentive Warning
Industry sources dismissed the warning, saying incentives link to notified schemes and eligibility criteria. They said the benefits have no direct connection with the amended land ceiling law.
Tea companies reiterated their willingness to cooperate. However, they insisted that structured dialogue remains essential to balance worker welfare with legal compliance and financial stability.
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