The Ladakh administration has cancelled the land allotment of over 1000 kanals (approximately 135 acres) given to the Himalayan Institute of Alternatives (HIAL), founded by climate activist and educator Sonam Wangchuk, in Phyang village. The order, issued by Deputy Commissioner/CEO LAHDC Leh, Romil Singh, states that the land has been "escheated to the State" because the institute failed to use it for the intended purpose. The administration cited several violations of the lease agreement, maintaining that the decision was procedural and not politically motivated.

According to the official order, the land was originally allotted in May 2018 for establishing a University, but it remained unused for over seven years. The administration added that no formal lease deed was ever executed, and no formal handover of the land occurred. They further stated that the allotment lapsed on May 5, 2019, due to non-compliance with lease rules. The order directs the LAHDC and Tehsildar Leh to remove all encumbrances and update revenue records immediately.

Sonam Wangchuk has strongly criticized the administration's action, calling it a "witch-hunt" and an "attack on Ladakh". He believes the cancellation is a politically motivated attempt to suppress voices demanding statehood for Ladakh and the extension of the Sixth Schedule of the Constitution to the Union Territory. Wangchuk, along with HIAL's CEO Gitanjali Angmo, has announced plans to challenge the cancellation in court. They argue that the decision is baseless and that HIAL has been actively working towards establishing an alternative university.

Wangchuk and Angmo stated that they had approached the government multiple times to complete the lease deed after Ladakh became a Union Territory in August 2019. However, they claim the government responded that a lease policy had not yet been formulated, and HIAL was allowed to continue construction activities in the meantime. They also point out that the land was allotted by the LAHDC, but the cancellation was carried out by the Deputy Commissioner without consulting the hill council, which they say violates its mandate.

HIAL's CEO, Gitanjali Angmo, stated that the institute was established in 2017-18 and has provided long-term and short-term courses and fellowships to over 400 students in the past five years. She disputed the administration's claim that no university has been established, arguing that HIAL functions as an alternative university, even without formal registration.

The Leh Apex Body (LAB), along with the Kargil Democratic Alliance (KDA), has also condemned the cancellation. These organizations, which have been leading the agitation for statehood and the Sixth Schedule for four years, view the action as an attempt to silence the voices of Ladakh and have vowed to stand with Wangchuk.

This is not the first time Sonam Wangchuk's projects have faced scrutiny. In 2023, villagers of Phyang requested the revocation of HIAL's land allocation, citing delays in the university's construction. Wangchuk was also previously issued a notice in 2020 for failing to deposit the agreed amount for the land. Furthermore, some locals have alleged that Wangchuk's projects contribute to environmental issues, such as plastic waste.