Guwahati, Jan 6: Tea companies in Assam have urged the state government to hold discussions to address financial and legal challenges related to granting land rights to workers under the amended Assam Fixation of Ceiling of Land Holdings Act.
Industry representatives said they welcome the move to allow workers to build houses within tea garden areas but have sought clarity on how the policy will be implemented. A planter told PTI that estate owners are open to transferring land where labour quarters are located, provided existing legal and financial concerns are resolved.
The Consultative Committee of Plantation Associations (CCPA), which represents major tea producers, has written to the chief secretary outlining key obstacles. The CCPA pointed out that employers are still legally required to provide housing to workers under the Plantations Labour Act, which is now part of the central Occupational Safety, Health and Working Conditions Code. Until these statutory obligations are amended, management must retain control over labour lines, the committee said.
The CCPA also noted that large portions of tea estate land are mortgaged to banks, meaning prior consent would be required for any transfer. Granting patta, or ownership deeds, would create heritable and transferable rights, which could lead to future sales and fragmentation of estate land. The committee has sought fair compensation under the Land Acquisition Act, 2013, and relief from welfare responsibilities for land that is transferred to workers.
In its letter, the CCPA added that company-built assets such as labour quarters would need separate valuation, as the land acquisition law covers land but not constructed structures.
Tea Association of India president Sandeep Singhania reiterated these concerns during the 50th Biennial General Meeting of the CCPA. He said that pledged lands remain vulnerable and that state-level action does not automatically remove statutory housing duties unless corresponding amendments are made to central laws.
The Assam Legislative Assembly passed the Assam Fixation of Ceiling of Land Holdings (Amendment) Act, 2025, in November. The legislation aims to cover about 2,18,553 bighas, or around 72,248 acres, across 825 tea estates, with the stated objective of benefiting more than 14 lakh workers living in labour colonies.
Industry sources, however, dismissed Chief Minister Himanta Biswa Sarma’s New Year warning that the government could withdraw around Rs 150 crore in annual incentives if companies resist the move or approach the courts. According to sources, incentives are linked to notified schemes, and eligibility is not connected to the amended land ceiling law. Sarma has stated that the process of land acquisition has already begun.
