AMENDMENTS TO MAHARASHTRA TENANCY AND AGRICULTURAL LANDS ACT
Under Section 63 of the Maharashtra Tenancy and Agricultural Lands
Act, 1948, (“Tenancy Act”), no agricultural land could be transferred to
non agriculturists without permission of the Collector or an officer authorized
by the State Government on the conditions prescribed under the Tenancy Act. Under the Tenancy Act,
an agriculturist shall include any
person and his heirs whose land has been acquired for a public purpose and who
as a result of such acquisition has been rendered landless from the date of
such acquisition.
Now the Tenancy Act has been amended
to remove the bar on transfer of agricultural land to non agriculturists with
respect to land situated within the limits of a Municipal Corporation or a
Municipal Council, or within the jurisdiction of a Special Planning Authority
or a New Town Development Authority appointed or constituted under the
provisions of the Maharashtra Regional and Town Planning Act, 1966 and also to
any land allocated to residential, commercial, industrial or any other
non-agricultural use in the draft or final Regional plan or Town Planning
Scheme. However, the amendment contains certain conditions for transfer of
agricultural land.
Further Section 63-1A of the Tenancy Act provides for transfer of
agricultural land to non agriculturists for bona fide industrial use. A
brief comparison on the pre-amendment and post-amendment position of law under
this Section is contained in the table below:
S N
|
Pre-amendment
|
Post- amendment
|
1.
|
Earlier, purchase of agricultural land by
agriculturists or non-agriculturists intending to convert the same to a bona
fide industrial use exceeding 10 acres would require permission from the
Development Commissioner (Industries) or any officer authorized by the State
Government.
|
After the amendment, no such permission shall be
required where such purchase of agricultural land is for bona fide industrial
use, or for Integrated Township Project and it shall be subject to the
condition that such land shall be put to bona fide industrial
use within a period of 5 years from the date of purchase. If the agricultural
land is not put to bona fide industrial use within the aforesaid
period of 5 years, the Collector may grant an extension of further 5 years on
payment of non-utilization charges at the rate of 2% of the market value of
such land per annum, calculated as per the Annual Statement of Rates
published under the Bombay Stamp (Determination of True Market Value of
Property) Rules, 1995.
|
2.
|
Earlier, the agricultural land was to be put to
industrial use within a period of 15 years from the date of purchase and the
original seller would be entitled to repurchase it from the defaulting
purchaser at the original price.
|
After the amendment, the agricultural land shall
be put to industrial use within 10 years from the date of purchase. If the
agricultural land is not put to bona fide industrial use within the
period of 10 years, inclusive of the extension period, then the Collector
will resume possession of the land after giving a month’s notice to the
defaulting purchaser, and the land shall be vested in the Government, free
from encumbrances and shall first be offered to the original seller at the
same price at which the land had been sold by him.
|
3.
|
Earlier, if the agricultural land purchased was
held by Occupant Class-II, the purchaser would in lieu of any Nazarana or
other charges, be liable to pay to the Collector 2% of purchase price in case
of land purchased for bona fide industrial use and 50% of
the purchase price if land is purchased for Special Township Project within
one month of execution of the Sale Deed and there was no penalty for delay of
payment.
|
After the amendment, if such purchaser fails to
deposit such amount within 1 month, then such purchaser shall pay to the
Government 75% of the purchase price or the market value of the land as per
the Annual Statement of Rates of that year, whichever is higher.
|
4.
|
No such provision in the Tenancy Act prior to the
amendment.
|
A new provision is added which stipulates that
when the purchaser fails to convert the agricultural land to bona fide
industrial use and wishes to sell the same within the specified period of 10
years, the purchaser may do so by paying a non-utilization charge subject to
the following conditions:
|
MHCO COMMENT: The
new provisions in the Tenancy Act will boost development for legitimate
purchaser and bar the others from purchasing agricultural land without having
intentions to use the same for bona fide industrial use as the new
amendment imposes heavy penalties. Further, the amendment will also prevent
frivolous trading in agricultural land and a new provision is added, giving an
option to the purchaser of the agricultural land to sell his land in case he
has failed to convert the same to bona fide industrial use within the
specified period of 10 years.
The views expressed
in this update are personal and should not be construed as any legal advice.
Please contact us directly on +91 22 40565252 or legalupdates@mhcolaw.com for any assistance.