Land Holding rights and ceilings

This is an attempt to provoke and engage discussions on the subject matter

While discussing the findings and report of the Economic Affairs Committee on the FDI Policy 2010 and also EDP 2010, an issue that gained significant attention was the issue of foreign land ownership.

The Companies Act 2001 is not clear about companies under FDI as far as the legislation goes and this has implications on land ownership rights. The Companies Act enacted before drafting of any FDI policy may have not encompassed such a provision. 

The Land Act 2007 under section 64 allows land holding ceiling of 25 acres to all Bhutanese and in section 68 subsection (f) leaves exemption for industrial purposes to hold more land for Corporations (Companies Act). 

The Corporations under FDI and land ownership may have more reasons to be studied further recommends the report. As it may be, a doubt that may now arise is also of the report and recommendation is based on reasons which could realize even with Corporations that may not have come through FDI. 

Article 9 Principles of State Policy sub article 7 reads:  

The State shall endeavour to develop and execute policies to 

minimize inequalities of income, concentration of wealth, and 

promote equitable distribution of public facilities among 

individuals and people living in different parts of the Kingdom. 

Is allowing Corporations to hold land more than 25 acres or more specifically, unlimited land holding by Corporations, wether FDI or non-FDI, good or bad? 


About Sangay Khandu

Elected to Parliament of Bhutan twice. Previously worked with the Central Bank, the largest SoE (power utility) and international organization.
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