A dispute over land at Tzudikong town under Tuli-Sundivision, originally leased to the now-defunct Nagaland Pulp and Paper Company Ltd (NPPCL) has sparked conflicting claims between 3A Capital Services, which has acquired NPPCL, and the Department of Fisheries & Aquatic Resources, which has been developing an Integrated Aqua Park (IAP) at the site.
According to a report submitted by the Additional Deputy Commissioner (ADC) of Tuli to the Deputy Commissioner (DC) of Mokokchung, the Tuli Paper Mill was established in 1971. An agreement between the State Government and NPPCL was signed on March 24, 1982, which stipulated in Part 2, Clause 2 that the lease commenced on March 1, 1972, for a period of 99 years, or until the company ceased to exist or was wound up, whichever came earlier.
The agreement also granted NPPCL: Unrestricted rights to use or modify the leased land (Clause 5); and Protection from interference by the Government of Nagaland or any third party (Clause 6).
However, due to operational losses and power supply issues, the Tuli Paper Mill ceased production in 1992. In an attempt to revive the mill, a Tripartite Agreement was signed on May 25, 2006, between the Government of Nagaland, Hindustan Paper Corporation Ltd., and NPPCL. Despite these efforts, the mill was ultimately put up for liquidation in 2019.
Conflicting land claims emerge
On February 29, 2024, a Land Holding Certificate was issued by the Sub-Divisional Officer (Civil), Tuli, for the development of an Integrated Aqua Park (IAP) at Tzudikong. This certificate was based on a Lease Deed/Memorandum of Agreement between Wameken Village Council and the Department of Fisheries & Aquatic Resources, Nagaland, Kohima.
However, on June 19 and July 11, 2024, the Industries & Commerce Department, Nagaland, issued letters informing stakeholders about the purchase of NPPC Ltd., Tuli, by 3A Capital Services, Mumbai, and urged all departments to extend support for its revival.
Subsequently, on March 18, 2025, the Deputy Commissioner (DC) of Mokokchung issued a letter regarding a complaint about unauthorized construction of an Integrated Aqua Park (IAP) on NPPC-acquired land.
To address the dispute, a consultative meeting involving all stakeholders was convened on April 1, 2025, at 11:00 AM at the ADC Tuli’s office.
During the meeting, reportedly the ADC Tuli acknowledged that the Fisheries Department had acted beyond its jurisdiction by leasing the land. As a result, the meeting concluded with a decision to declare the NOC and lease agreement between the Fisheries Department and Wameken Village Council null and void.
However, when asked about the issue, the Divisional Fisheries Officer (DFO) in Tuli told MT that the department was unaware of the meeting’s outcome and had no further updates on the matter.
Understanding the land dispute: NPPCL vs. Fisheries Department
The dispute between the Nagaland Pulp & Paper Company Limited (NPPCL) and the Department of Fisheries & Aquatic Resources emerged when 3A Capital Services Ltd., the new management of NPPCL, objected to the construction of an Integrated Aqua Park (IAP) on land it claims falls under its lease agreement. However, the Nagaland government argues that the land in question is state-owned and has been allocated for the fisheries project.
Background: The revival of Tuli Paper Mill
On March 12, 2025, Nagaland Chief Minister Neiphiu Rio reaffirmed the state government’s commitment to reviving the defunct Tuli Paper Mill, also known as NPPCL. 3A Capital Services Ltd., which took over the management of NPPCL, submitted a business plan to the Chief Secretary of Nagaland, outlining strategies for its revival. However, the company soon raised concerns over unauthorized construction activities on the land leased to NPPCL.
In a formal complaint to the Deputy Commissioner of Mokokchung, 3A Capital Services Ltd. stated:
“We at 3A Capital Services Limited (“3A”) have taken over the management of NPPCL and have submitted business plans for the revival of the company to the Chief Secretary, Government of Nagaland. We appreciate the resolve shown by CM for the revival of NPPCL and assure 3A’s commitment to successful implementation of the plans. However, we would like to invite your attention to unauthorized construction being carried out on the land leased to NPPCL. As you are aware, this land belongs to the company, and any activities conducted without the company’s approval are a direct infringement of our legal rights over the area/land. Further, these activities are likely to hamper the implementation of business plans of the company.”
The company urged authorities to immediately halt construction activities and remove machinery stationed at the site, citing concerns that the unauthorized work could disrupt NPPCL’s revival plans.
The Government’s stand
On March 24, 2025, CM Rio and Advisor Pangjung wrote to the Commissioner of the Home Department requesting intervention in the dispute. They highlighted the significance of the Integrated Aqua Park project, which is being implemented under a centrally sponsored scheme (CSS) from the Ministry of Fisheries, Animal Husbandry & Dairying. The government argued that the project is essential for boosting Nagaland’s fisheries sector and aligns with the broader goal of doubling fish farmers’ incomes.
The letter further stated that the Department of Fisheries & Aquatic Resources, with approval from the Government of Nagaland, had secured funds for the project during the fiscal year 2024-25.
The government also claimed that:
The Additional Deputy Commissioner (ADC) of Tuli had issued a Land Holding Certificate on February 29, 2024. A Lease Agreement Certificate from the Government of Nagaland was in place. A Lease Deed/Memorandum of Understanding (MOU) existed between the Wameken Village Council, local landowners, and stakeholders.
The Hindustan Paper Corporation angle
The government’s response also pointed out the failure of Hindustan Paper Corporation (HPC), the previous owner of NPPCL, in fulfilling its commitments to the state. The letter argued that since HPC had abandoned the paper mill project, the low-lying areas in Tzudikong should be repurposed for other developmental activities, such as fisheries.
“Rather than reviving the abandoned paper mill, developing the low-lying areas with aquatic resources is a more practical approach. The claim of ownership by 3A Capital Services Ltd. over land procured for a Central Government Sponsored Scheme has become an obstacle to development.”
The state government further asserted that the land is leased to the Government of Nagaland, not to any private entity, including 3A Capital Services Ltd. Therefore, the Fisheries Department has the legal right to proceed with the IAP project.
However, with the meeting resolution on April 1, it remains to be seen whether this will settle the dispute or if fresh challenges will emerge.