Section 118 Explained: Can Non-Himachalis Buy Property in Himachal Pradesh?
By RAJAT MALHHOTRA - ULTRA LUXURY PROPERTY SPECIALIST, COLUMNIST AND NUMEROLOGIST
SHIMLA: Can a person from Delhi, Mumbai or Chandigarh buy a plot or apartment in Himachal Pradesh? The short answer is yes, in certain circumstances, but not without following the applicable legal process.
The question has become increasingly important as buyers from outside Himachal Pradesh explore the state's hill towns for second homes, retirement properties and holiday cottages. However, the rules governing land transactions are different from those in many other parts of India, making it essential for prospective buyers to understand Section 118 before paying an advance or signing a property agreement.
What is Section 118?
Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, 1972 places restrictions on certain transfers of land to non-agriculturists. The Himachal Pradesh Town & Country Planning Department's official FAQ directly addresses the question of whether a non-Himachali or a non-agriculturist Himachali can buy an apartment or plot.
The department states that such a purchase is possible after obtaining permission from the government under Section 118.
This is an important distinction. The rule should not be interpreted as a general statement that anyone from outside Himachal Pradesh can freely purchase any plot or parcel of land in the state.
What does this mean for buyers from Delhi, Mumbai or Chandigarh?
For an eligible buyer from outside Himachal Pradesh, the transaction may require the relevant government permission under Section 118, depending on the nature of the property and transaction.
The state's official e-District service portal lists specific services for applications for sale/purchase permission under Section 118 for residential and commercial purposes. It also lists other Section 118-related services, including extensions of permission and change in land use.
The Town & Country Planning Department's FAQ also outlines Section 118-related requirements in the context of apartments, including permission for purchasing apartments or plots by non-Himachalis and non-agriculturist Himachalis.
Why buyers should not rely on verbal assurances
A mountain view, attractive brochure or promise from a property seller does not establish that a transaction is legally permissible.
Prospective buyers should independently verify the property's title, revenue records, land classification, approvals, development status and any permissions required for the proposed transaction. Government planning documents can also require records such as Jamabandi, Tatima, demarcation reports and other property-related documents in relevant applications.
Buyers should also distinguish between permission to purchase land and permissions relating to construction, development, subdivision or change of land use. These can involve separate regulatory requirements.
The Palampur connection
For people considering a second home in places such as Palampur, the Section 118 question is particularly relevant. The area's natural beauty, tea gardens, Dhauladhar views and relatively peaceful lifestyle have attracted growing interest from people looking for mountain properties.
But the correct approach is to investigate the legal status first and the view second.
Anyone considering a Himachal property transaction should consult an appropriately qualified legal professional and verify information with the competent government authorities before committing funds.
The important words are: permission, eligibility and conditions. Don't buy property in Himachal based on a WhatsApp message.