Karnataka: Coffee and rubber cultivation companies owe Rs 2,000 crore to forest department

The Forest Department is taking measures to recoup outstanding lease payments totaling Rs 2,000 crore from private and multinational companies engaged in coffee, tea, and rubber cultivation in Kodagu and Chamarajanagar districts.

Leases for forest lands granted several decades ago have lapsed, leading to substantial revenue losses. A committee led by a senior IFS official has been established to expedite the recovery process by addressing legal obstacles.

Forest Minister Eshwar Khandre revealed that, subsequent to the enactment of the Forest (Conservation) Act in 1997, lease rates were revised to Rs 5,000 per hectare, and the lease duration was shortened from 999 years to 99 years. Despite these changes, no company has either renewed contracts or adhered to the updated regulations, resulting in a cumulative debt of Rs 2,000 crore owed to the state government.

Acknowledging the historical silence on the matter by officials, Khandre after becoming aware of the issue, he reportedly convened a meeting with officials and initiated actions to recover outstanding dues or reclaim the land in case of lapsed leases.

He said, some companies have taken the matter to court, and cases are currently at various stages. The committee, led by senior IFS officer BP Ravi, will streamline the process of recovering dues and collaborate with legal experts to address cases in both the High Court and Supreme Court.