Chhattisgarh Chief Minister Raman Singh has decided to withdraw the state Land Revenue Code (Amendment) Bill, 2017 amid protests by tribal groups.
Before the Cabinet meeting on Thursday, Singh met some senior tribal leaders and discussed the issue.
The bill, which eased the purchase of tribal land for government projects, was passed by the Chhattisgarh Assembly last month and sent to Governor Balram Das Tandon for his consent.
However, a delegation of the Congress party met the Governor recently and requested him to not give his consent as the bill was against the tribal communities' interests.
The Opposition Congress had earlier alleged that through the bill, the Bharatiya Janata Party (BJP) led Chhattisgarh government was trying to do away with the restrictions on the purchase of tribal lands.
Apart from the Congress and the Sarva Adivasi Samaj leaders, some BJP leaders too had criticised the controversial bill.