Chapter II LAND LEASE - AGREEMENT, TERMINATION, RIGHTS AND RESPONSIBILITIES

1. (1) Notwithstanding anything contained in any other law, on and from the commencement of this Act, every person who is competent to transfer agricultural land under section 7 of the Transfer of Property Act, 1882 (4 of 1882) and who intends to lease in or lease out agricultural land for agriculture and allied activities shall be entitled to enter into a lease agreement, consistent with the provisions of this Act: Provided that, for Leasing out any land held by a person belonging to the Scheduled Tribes, prior permission of the Collector under section 36A of the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966) shall be necessary and no such permission shall be given unless the person Leasing in such land also belongs to the Scheduled Tribes.
2. (2) The lease shall be between the Land Owner - Lessor who leases out his land and the Lessee Cultivator who leases in such land for agriculture and allied activities.
3. (3) The leasing in of agricultural land in the Scheduled Areas shall be only by the person belonging to Scheduled Tribes or any other person permitted by the laws in force in Scheduled Areas.
4. (4) The Land Owner - Lessor and the Lessee Cultivator shall be required to enter into a written lease agreement with mutually agreed terms and conditions which shall be required to be duly registered as per the provisions of the Registration Act, 1908 (XVI of 1908).
5. (5) The lease agreement shall inter alia contain the following details, terms and conditions, namely :-
   • (a) the names of the Land Owner - Lessor and Lessee Cultivator;
   • (b) survey number, boundaries, location and area of the land being leased out;
   • (c) the duration of lease, expressed in months or years, clearly indicating the starting and ending dates of the lease, which should, as far as practicable, be compatible with the crop cycle or Agricultural Year;
   • (d) the lease rent or consideration payable by the Lessee - Cultivator and the due date on which such amount shall be payable by the Lessee Cultivator;
   • (e) the terms and conditions for renewal or extension of lease, if any;
   • (f) any major default which shall make the lease liable for termination;
   • (g) the circumstances in which land may be resumed by the Land Owner - Lessor and methodology therefor;
   • (h) the minimum period during which such resumption of land by the Land Owner - Lessor shall not be permissible;
     • (i) any other mutually agreed provision, consistent with the provisions of this Act.
6. (6) The duration of lease shall be decided and mutually agreed upon by the Land Owner - Lessor and the Lessee Cultivator and any period of lease as per the lease agreement executed under this Act shall not create any protected tenancy right in favour of the Lessee Cultivator.
7. (7) The consideration payable by the Lessee - Cultivator for use of land leased under this Act in the form of lease rent, or share of produce or in any other form shall be decided and mutually agreed upon by the Land Owner - Lessor and the Lessee Cultivator.
8. (8) The lease agreement under this Act shall not be entered into the record of rights, but the information regarding lease agreement under this Act shall be entered in a Register, maintained by the Competent Authority in such form as may be prescribed.
9. (9) A lease agreement under this Act, even though registered under the Registration Act, 1908 (XVI of 1908) shall not create or confer any right over land including protected tenancy or occupancy right or any other right against lawful eviction or lease termination or interest in favour of the Lessee Cultivator other than those contained in this Act or the lease agreement and shall not be used to establish any permanent right over the land in any court of law.
10. (10) The possession of the land leased out under this Act shall be deemed to have reverted to the Land Owner - Lessor upon the expiry of agreed lease period, unless the lease is renewed by a fresh written lease agreement which is registered by following the provisions of this section for a period mutually agreed upon by the Land Owner - Lessor and the Lessee Cultivator.
11. (11) Any dispute between the Lessee Cultivator and the Land Owner - Lessor shall be resolved through the dispute resolution mechanism provided under section 9 of this Act.

The Land Owner - Lessor,-

1. (a) shall put the Lessee Cultivator in possession of the leased out land on the first day of the lease and shall not interfere with the Lessee Cultivator's use and possession thereof so long as the Lessee Cultivator,-
   • (i) does not default in the payment of lease amount;
   • (ii) does not cause damage to the health of the soil;
   • (iii) does not use the land for purposes other than what is agreed upon in the lease agreement; or
   • (iv) does not sub-lease the land to any other person;
2. (b) shall have right to receive the agreed lease consideration in the form of lease rent or fixed cash or share of produce from the Lessee Cultivator as per the agreed time schedule as per the lease agreement;
3. (c) shall be entitled to automatic resumption of the land without any encumbrances on the expiry of the lease period as initially agreed upon or as extended with mutual consent and the Land Owner - Lessor shall not be liable for discharge of any charge or interest or liability created by the Lessee Cultivator during the lease period;
4. (d) shall have the right to resume the leased out land during the subsistence of lease if and only if the written lease agreement so provides, with prior written notice to the Lessee Cultivator, as mutually agreed upon;
5. (e) shall have the right to terminate the lease if the Lessee Cultivator commits any of the defaults set out under clause (a);
6. (f) shall have the right to alienate the leased out agricultural land including by way of a sale, gift, mortgage, etc. during the currency of the agreed lease period, subject to the condition that such transfer shall not affect in any manner the Lessee Cultivator's agricultural right to cultivate the land until the expiry of the agreed lease period;
7. (g) shall pay all applicable taxes and cess on the land;
8. (h) shall, during the term of the lease agreement, not create any hindrance in the works being done by the Lessee Cultivator as per the lease agreement.

The Lessee Cultivator,-

1. (a) shall be entitled to an undisturbed possession and use of the land for the agreed period as provided for in the lease agreement;
2. (b) shall not claim any right over the land by virtue of the lease other than those set forth in this Act or in the lease agreement;
3. (c) shall not sub-lease or mortgage the land leased in by him;
4. (d) shall have, notwithstanding anything to the contrary contained in any other law for the time being in force, no right to create change of any kind on the land under lease agreement other than the rights granted in the lease agreement;
5. (e) shall be eligible to raise loans from banks or co-operative societies or other financial institutions without mortgaging the leased in land, based on the lease agreement. The expected value of production or returns from leased in land during the lease period may be used as collateral by credit institutions for advancing loan to a Lessee Cultivator if this is mutually agreed between the institution and the Lessee Cultivator;
6. (f) shall, during the currency of the lease period, be entitled to obtain crop insurance, disaster relief or any other benefits or facilities that may be provided to the farmers by the State or the Central Government, based on the lease agreement;
7. (g) shall have the right to voluntarily surrender the leased in land after giving such notice to the Land Owner - Lessor, as specified in the terms and conditions of the lease agreement;
8. (h) shall vacate the land leased in by him immediately at the end of the initially agreed term of the lease or the mutually extended period, without any encumbrances created during the lease period;
   • (i) shall not have the right to build structures or erect any fixtures on the land without the express permission of the Land Owner - Lessor;
9. (j) shall be entitled to compensation for the improvements or fixtures made on the agricultural land leased in from the Land Owner - Lessor, provided the improvements or fixtures are consistent with the lease agreement and the lease agreement provides for such compensation. Explanation.- Compensation is the residual value of the improvements or developments made on the land leased in, at the time of termination or expiry of lease;
10. (k) shall pay the lease consideration in time, as specified in the lease agreement, and any delay in payment beyond three months from the due date, shall constitute a major default, entitling the Land Owner - Lessor to issue notice for termination of lease;
11. (l) shall use the land only for agriculture and allied activities, as mentioned in the lease agreement;
12. (m) shall not cause any damage to the land and shall be liable to the Land Owner - Lessor for any damage caused to the leased in land and any immovable asset on it;
13. (n) shall not have any right on the land leased in, other than those specifically set forth in the lease agreement or in this Act;
14. (o) shall not sublease the land leased in by him to any other person, and any such act shall constitute a major default, entitling the Land Owner - Lessor to issue notice for termination of lease;
15. (p) shall not disturb the boundary of the land and survey stones, if any, during the lease period.

1. (1) Leases under this Act shall not be heritable and the rights of the Lessee Cultivator granted under the lease shall not be transferable except as provided in the lease agreement.
2. (2) In the event of death of Land Owner - Lessor, the Lessee Cultivator shall continue to cultivate the land leased in for the remaining lease period, unless the Lessee Cultivator and the heirs of Land Owner - Lessor agree to end the lease agreement early by mutual consent. In case of land leased out by multiple Land Owners - Lessors, as long as one of the original Land Owners is alive, the lease agreement shall stand.
3. (3) If there is single Lessee Cultivator who dies, the land shall revert to the Land Owner - Lessor, at the end of the crop year, unless the Land Owner - Lessor and heirs of such deceased Lessee Cultivator mutually agree to continue the lease. In case the Lessee Cultivator has included the name(s) of his or her son(s) or daughter(s) as a co-Lessee in the lease agreement, the surviving co-Lessee shall be entitled to continue the lease for the remaining lease period or any mutually agreed extended lease period.

The lease executed under this Act shall be terminated,-

1. (a) on expiry of the agreed lease period;
2. (b) if the Lessee Cultivator fails to pay the lease consideration as per the agreed terms and as per the agreed time schedule;
3. (c) if the Lessee Cultivator uses the land for the purposes other than agriculture and allied activities or those specified in the lease agreement;
4. (d) if the Lessee Cultivator sub-leases the leased in land;
5. (e) if there is any damage caused to the land by the Lessee Cultivator;
6. (f) if the Land Owner - Lessor and Lessee Cultivator mutually agree to terminate the lease;
7. (g) if the Lessee Cultivator dies during the lease period, in which case the termination of lease shall be subject to the provisions under section 6 of this Act;
8. (h) when the Lessee Cultivator voluntarily surrenders the land during the lease period, under provisions of clause (f) of section 5 of this Act; or
   • (i) if the Lessee Cultivator is adjudicated as undischarged insolvent or of unsound mind.