Uncertainty has hung over the hotel industry at the world-famous ski resort as the leases of nearly all hotels have expired
| Photo Credit:
IMRAN NISSAR
On August 7, a group of employees — some carrying placards reading “Save Our Livelihood,” others breaking into tears — staged a protest against the sealing of Nedos Hotel, a colonial-era property in Gulmarg dating back to 1888, bringing to a close a venue long associated with power, politics and public life in the region.
The Gulmarg Development Authority took possession of the property, saying the hotel’s lease had expired about decades ago. Protesting employees were saying the closure had left them without a source of income.
Uncertainty has hung over the hotel industry at the world-famous ski resort as the leases of nearly all hotels have expired.
Under the Jammu and Kashmir Land Grant Rules, 2022, properties with expired leases are liable to be auctioned, deepening anxiety among stakeholders.
Tariq Ghani, secretary general of J & K Hoteliers Club (JKHC) told businessline that all hotels were operating without registration as their leases had not been extended. “Presently they are not registered with the Tourism Department”, he said. According to stakeholders, a large part of the 40-year lease period was lost as the Valley remained caught in the crosshairs of prolonged unrest, with tourism suffering a major setback during the years of turmoil.
“The government should take this into account and provide relief to existing leaseholders, instead of pushing the properties towards auction,” said Ghani.
The stakeholders said that they raised the issue with the Central government multiple times over the last few years, but to no avail.
Fear among stakeholders
The auction of properties under the J &K Land Grant Rules, 2022 paves the way for the outsiders to participate in the bidding, fuelling fears among local stakeholders of losing control over the properties. Following the abrogation of article 370 and 35 A, outsiders could buy or obtain property in J&K on lease.
A PIL filed in the High Court over alleged encroachment in Gulmarg in 2012 with its scope later expanded to lease related issues. In September 2025, the government informed the court that it had no policy for reconsideration of lease issue. In the last Assembly session, National Conference legislator Tanvir Sadiq introduced a private member’s bill seeking to repeal the J & K Land Grant Rules, 2022. He later withdrew the bill after the government assured him that the concerns raised would be taken into account.
“The uncertainty over leases and the possibility of auctions has unsettled Gulmarg’s tourism sector,” said a hotelier. “Local operators fear being edged out by outside bidders, and unless the government provides clarity, uncertainty continues to prevail”, he said.
Published on December 15, 2025