Himachal CM Orders SIT Probe into Benami Land Deals; Assembly Debates RDG Cut

February 17, 2026

Shimla: On the second day of the budget session of the Himachal Pradesh Assembly, a heated debate erupted in the House over the issue of benami land deals and the abolition of the Revenue Deficit Grant (RDG).

SIT to investigate benami land deals

Responding to a question from Gagret MLA Rakesh Kalia during Question Hour, Chief Minister Sukhwinder Singh Sukhu said that strict action will be taken against those involved in benami land deals in the Gagret area. He announced the formation of a Special Investigation Team (SIT) to thoroughly investigate the matter.

Earlier, MLA Rakesh Kalia alleged that the name of a retired Chief Secretary of Uttarakhand has surfaced in these benami deals. He also said that large-scale land purchases and sales have taken place around Gagret and Gaggal airports, and that the officials involved were also involved in a conspiracy to topple the government.

Opposition raises questions on NEVA system

Before Question Hour, Leader of the Opposition Jai Ram Thakur raised the issue of opposition questions not being listed in the House.

Assembly Speaker Kuldeep Singh Pathania acknowledged technical difficulties with the National e-Vidhan Application (NEVA) system. He stated that the matter had also been raised with the Lok Sabha Speaker. He assured that all members’ questions would be taken up in upcoming meetings.

Discussion on proposal to abolish RDG intensified

After Question Hour, the House began discussing the issue of abolishing the Revenue Deficit Grant (RDG). The state government will pass a resolution in this regard and send it to the central government, demanding the reinstatement of RDG.

The 16th Finance Commission has recommended abolishing the RDG provided to Himachal Pradesh. If implemented, the state could suffer a loss of approximately ₹40,000 to ₹50,000 crore over the next five years.

Impact on the State’s Finances

About 13 percent of Himachal Pradesh’s total budget is derived from the RDG. The state government says that its closure will severely impact its finances. Following the implementation of GST, the state has limited options for imposing new taxes, which could further increase financial pressure.

The ruling party termed this recommendation as against the state’s interests, while the opposition questioned the government’s financial management capabilities.