Part 2
(In this Article, we continue our examination of the Maharashtra Land Revenue Code, 1966 (‘Code’) which deals with the law relating to agricultural land and land revenue in the State of Maharashtra.)
1. Uses of land:
1.1 The holder of any land which is assessed or held for agricultural purposes is entitled to himself or through his agents to erect farm buildings, wells, or make any other improvements for better cultivation of the land. Interestingly, the Code does not define the term ‘agricultural’. Reference may be made to the definition under various other Land Laws. Activities such as, horticulture, crop farming, grazing, dairy farming, poultry farming, livestock breeding, etc., would generally be covered under this definition. It is a matter of fact whether a particular land can be said to be used for agricultural operations or not.
1.2 Before commencing construction or renovation of any farm building on lands located in cities, certain types of municipal corporations, etc., the holder requires the prior permission of the Collector for such work. The permission is granted subject to certain conditions.
1.3 Without the prior permission of the Collector:
(a) No land which is used for agricultural purpose can be used for any non-agricultural purpose;
(b) No land which is used for one non-agricultural purpose can be used for any other non-agricultural purpose;
(c) No land which is used for one non-agricultural purpose can be used for the same purpose but in relaxation of any conditions imposed;
Land which is used for non-agricultural purpose is popularly known as ‘N.A. Land’. The Maharashtra Land Revenue (Conversion of Use of Land and Non-Agricultural Assessment) Rules, 1969 need to be complied with for converting an Agricultural Land into NA Land.
1.4 Procedure for conversion into N.A. Land:
(a) An applicant who desires to convert agricultural land into N.A. Land must make an application to the Collector for permission in the prescribed form and in the prescribed manner.
(b) The Collector must acknowledge the application within 7 days.
(c) The Collector may refuse the permission or grant it on such terms and conditions as he deems fit.
(d) In cases where the Collector fails to take any action within 90 days of the acknowledge-ment or within 90 days of receipt (if no acknowledgement is also granted, then the permission applied for is deemed to be granted).
(e) Once the permission is granted, the applicant must inform the Tahsildar about the change of user of the land within 30 days in the prescribed format.
(f) Once the land is permitted to be made into N.A., a sanad is granted by the Collector to the holder of the land.
(g) Once permission is granted for N.A. use, such use must be commenced within one year of the date of the Collector’s Order.
(h) Where permission is granted for construction of a structure to be used for a non-agricultural purpose, then the provisions of the Maharashtra Land Revenue (Conversion of Use of Land and Non-Agricultural Assessment) Rules, 1969 need to be complied with in this respect. These include provisions on the minimum open space to be maintained, the number of storeys to be constructed, the size of the building, the plinth area, the dimensions of a room used for residential purposes, types of building material to be used, construction of cess-pools, stables, privies, etc.
In the case of Jamunabai P. Shah v. Bajirao Kalbor, 1995 (1) Mah. LJ 143, it was held that NA use commences from the date on which the land is in fact put to non-agricultural use and not from the date of permission by the Collector.
1.5 Bona fide Industrial Use of Land:
1.5.1 In the following cases prior permission is not required for conversion of the use of agricultural land:
(a) If land is situated within the industrial zone of a development plan prepared under the Maharashtra Regional and Town Planning Act, 1966; or
(b) If the land is situated within the area where no plan exists for a bona fide industrial use; or
(c) If the land is situated within the area undertaken by a private developer for a special township project.
When land is so used, a sanad shall be granted in the prescribed form.
1.5.2 The conditions to be complied in this respect are as follows:
(a) The user has clear and proper access to such land
(b) The land should not be reserved for any public purpose
(c) The bona fide industrial use/township project does not conflict with any development plan of the State
(d) It is not a land notified for acquisition by the State
(e) The industry/project is not within 30 metres of any railway line or 15 metres of any high voltage transmission line.
(f) No Central/State/Local laws are being contravened.
1.5.3 The following activities are treated as being of bona fide industrial purpose:
- Manufacture, preservation or processing of goods
- Industrial business or enterprise, carried on by any person
- Construction of industrial buildings used for the manufacturing process or purpose. It should be noted that construction and real estate development per se are not permitted activities
Ancillary industrial usages like:
- Office building of the industry concerned
- providing housing accommodation to the workers of the industry concerned
- Establishment of an industrial estate includ ing co-operative industrial estate, service industry, cottage industry, gra-modyog units or gramodyog Vasahats
1.5.4 A special township project means one which is framed under the Regulations for Development of Special Township under the MRTP Act, 1966.
1.5.5 Whenever any agricultural land is converted into N.A. Land or is used for a bona fide industrial use, then the holder is liable to pay a Conversion Tax. This tax is equal to 5 times the non-agricultural assessment of the land.
1.5.6 Any person who contravenes the provision of change of use of land would be liable to pay non-agricultural assessment. Further, he would be liable to such fine as the Collector determines. He would also be liable to restore the land to its original use or carry out such actions as the Collector determines in respect to the land. In certain circumstances, the Collector has power to regularise unauthorised use of land, subject to the following conditions :
(a) the holder pays the applicable Conversion Tax.
(b) the holder pays the N.A. assessment with reference to the altered use since commencement of that use.
(c) he pays such fine not exceeding 40 times the N.A. assessment as the Collector may determine.
(d) he abides by all conditions imposed by the Collector.
It may also be noted that under the Foreign Ex-change Management Act and Regulations issued thereunder, an Indian company cannot raise Foreign Direct Investment for acquiring agricultural lands with an intention of subsequently making them N.A. Lands. Recently, a large real estate developer was questioned by the Enforcement Directorate/RBI for using FDI proceeds for buying agricultural lands.
2. Land revenue:
2.1 All agricultural and non-agricultural land is subject to land revenue.
2.2 Land revenue is assessed with reference to the use of the land:
(a) for the purpose of agriculture,
(b) for the purpose of residence,
(c) for the purpose of industry,
(d) for the purpose of commerce,
(e) for any other purpose.
2.3 Non-agricultural assessment of lands :
2.3.1 N.A. assessment of lands is determined with reference to the use which such land is put to and whether it is situated in urban or non-urban areas.
2.3.2 The Collector would classify the villages in non-urban areas into Class-I and Class-II after considering the market values of the land, their situation, the non-agricultural purpose for which they are used, their advantages, disadvantages, etc. Class-I N.A. lands are assessable at a rate not exceeding 10 paise per square metre per year, while for Class -II N.A. lands the rate is not exceeding 5 paise per square metre per year.
2.3.3 In the case of N.A. assessment in urban areas, the Collector would divide them into blocks on the basis of the market value of lands, their N.A. use, advantages, disadvantages, etc. The N.A. assessment of such lands cannot exceed 3% of the full market value. The term full market value means:
Market Value of the Land
+ Capitalised Assessment
Capitalised Assessment means an amount equal to 16 times the assessment on the land for the time being in force. The full market value is estimated on the basis of sales, leases, land acquisition awards, etc., which have taken place in a period of five years immediately preceding the year in which the standard rate for N.A. assessment is being fixed (see para 6.3.4 below).
2.3.4 The Collector has powers to fix the rate of N.A. assessment per square metre of land in each block or urban area. Such rate is called the ‘the standard rate of non-agricultural assessment’ and is fixed as a percentage of the full market value. Each standard rate remains in force for a block of five years. In the year 2002, the Code was amended to provide that the non-agricultural assessment for the guaranteed period of five years commencing from 1st August 2001 shall not exceed:
(a) thrice the non-agricultural assessment rate of 1991 for land in a municipality and twice such rate for other lands in cases which are already assessed for non-agricultural purposes; and
(b) six times the non-agricultural assessment rate of 1991 for land in a municipality and four times such rate for other lands for cases to be assessed for non-agricultural purposes.
The rate of assessment, depending upon the type of land use, is as follows:
2.3.5 The method of computing the standard rate is as follows:
(a) The Collector first estimates the full market value of non-agricultural land in each block of land separately for each of the five years immediately preceding the year for which standard rate is being worked out.
(b) He then determines the full market value per square metre of land in each block of land.
(c) The standard rate of non-agricultural assessment per square metre of land in each block = 3% of the full market value per square metre of land.
(d) These rates are to be approved by the State Government. They are then published in the Official Gazette and they come into force from the date of publication.
3. Recovery of land revenue:
3.1 Chapter XI of the Code is a very important Chapter since it provides for the manner of recovery of land revenue. The claims of the State Government have precedence over all other debts, claims, etc., against any land. If the land revenue due is not paid by the prescribed dates, then it becomes an arrear of land revenue and the person responsible for its payment becomes a defaulter. In several Acts one comes across the phrase ‘all sums required to be paid under this Act may be recovered as an arrear of land revenue’. For instance, S. 46 of the Bombay Stamp Act, 1958 empowers the Collector to recover any duties or sums due under that Act as if they were an arrear of land revenue. Hence, it is important to understand what is the process prescribed for the recovery of land revenue under the Code.
3.2 The process of recovery of land revenue specified u/s.176 of the Code may be briefly described as follows:
(a) by serving a written notice on the defaulter
(b) by forfeiture of his occupancy
(c) by selling his movable property, other than certain necessary personal effects, tools of an artisan, articles for religious endowments
(d) by attaching and selling his immovable property, other than houses belonging to an agriculturist and occupied by him
(e) by arresting and imprisoning him. The arrest process would be stayed if the defaulter furnishes adequate security to the Collector.
(To be continued)
