The Jammu & Kashmir High Court will take up the Gulmarg hotels land lease case on September 17, a matter that has grown into a significant legal and political issue for the region. The case, originally filed in 2012 as a PIL over illegal encroachments in Gulmarg, has since widened to include the contentious question of hotel leases.

During Thursday’s proceedings, the court received sealed responses from both Chief Minister Omar Abdullah’s office and Lieutenant Governor Manoj Sinha. While the HC did not issue any remarks, its observations hinted at differences between the elected government and the LG on the matter.

At the core of the dispute are the J&K Land Grant Rules, 2022, introduced after the abrogation of Articles 370 and 35A. These new rules prohibit lease extensions once the original term ends and instead mandate open auctions, allowing any eligible Indian citizen to bid for properties. This marks a shift from earlier rules that limited leases to permanent residents of Jammu & Kashmir.

The changes have caused anxiety across Gulmarg’s hospitality sector. Out of 59 hotels in the hill station, leases for 55 properties have already expired, leaving owners facing eviction. The issue gained wider attention after the historic Nedous Hotel, a colonial-era property linked to Omar Abdullah’s grandmother, was sealed earlier this month following a 24-hour eviction notice. Its lease had actually expired in 1985.

The Omar government has signalled that it favours reviewing the 2022 rules, while hotel owners continue to push the central government for relief. For now, the fate of Gulmarg’s hotel leases rests with the High Court’s upcoming hearing.