Chapter VI DISTRIBUTION OF SURPLUS LAND

1[27. Distribution of surplus land.- (1) Subject to any rules made in this behalf, land (other than grazing land or tank land or land notified by the State Government as not capable or being disposed of for cultivation) which is acquired by and vests in the State Government under section 21 shall, subject to the provisions of the Code, be granted by the Collector or any other officer authorised in this behalf by the State Government in the order of priority set out in sub-sections (2), (3), (4), and (5).

1. (2) Where the surplus land belonged to a holder, who at any time before the commencement date, by resuming land from his tenant for personal cultivation under any tenancy law, has rendered that tenant landless, the surplus land shall first be offered to that tenant.
2. (3) Where any part of the holding of a person which consist of one or more compact blocks is declared as surplus land under this Act, then such surplus land-
   • (a) shall first be offered to the landlord who had leased the land to the such person and such landlord has not exercised his right of resumption under the relevant tenancy law or under section 19; and
   • (b) then to a person, who being previously employed on the compact block as an agricultural labourer or as technical or other staff engaged on or in relation to the agricultural produce raised or grown thereon, has been rendered unemployed as a result of the land of such block being declared surplus land.
3. (4) Thereafter fifty per cent. of the surplus land (excluding lands referred to in sub-sections (2) and (3) shall be reserved for distribution to landless persons belonging to the Scheduled Castes, Scheduled Tribes (whether residing in the Scheduled area or not) and landless persons belonging to such nomadic tribes, vimtukta Jatis and backward classes as may be notified by the State Government from time to time, and land so reserved shall be granted to such persons in accordance with the rules made in this behalf. Such rules may provide for fixing priorities.
4. (5) Thereafter, all surplus land (including surplus land which has not been granted under sub-sections (2) and (3) shall be offered in the following order of priority, that is to say,-
   • (i) a person from whom any land has been resumed by his landlord for personal cultivation under any tenancy law, and who in consequence thereof has been rendered landless, provided that such person is a resident of the village in which the surplus land for distribution is situate or within eight kilometers thereof; 2[(ia) A non-Tribal-transferee whose land (being land of a Tribal transferor transferred to the non-Tribal-transferee) has been restored to the Tribal-transferor under the provisions of the Maharashtra Restoration of Lands to Scheduled Tribes Act, 1974 (Mah. XIV of 1975), and who holds no other land who earns his livelihood principally by manual labour on agricultural land. Explanation.- For the purposes of this clause, the expressions "non-Tribal-transferee" and "Tribal-transferor" shall have the meanings respectively assigned to them in the Maharashtra Restoration of Lands to Scheduled Tribes Act, 1974 (Mah. XIV of 1975);
   • (ii) a person who had leased his land to any undertaking referred to in section 28 provided that, such person is a resident of the taluka in which the surplus land for distribution is situate, the net annual income of such person from all sources does not exceed four thousand rupees, and such person has not been granted any land under section 28-IAA;
   • (iii) serving members of the armed forces, and ex-servicemen, or where any such person dies before any land being granted to him by Government under this Act or any law of the time being in force or any executive orders, then his dependants;
   • (iv) landless persons : Provided that, if there are persons having the same order of priority, then the person who is a resident within eight kilometers of the outer limit of the village in which the surplus land for distribution is situated should be preferred : 3[Provided further that, where the surplus land was previously held by a joint farming or a farming society, it shall first be offered to the person whom the society undertakes to take as its member and such person becomes the member of the society.]
5. (6) Where the Collector, or the authorised officer, has to select under sub-sections (2), (3) and (5), one or more grantees from persons having the same order of priority, the selection shall be made by him by drawing lots : Provided that, if among such persons having the same order of priority, there are serving members of the armed forces or ex-servicemen or their dependents, they should be preferred, so that, where their number is equal to or less than the number of grantees to be selected, all of them shall be selected as grantees; and where their number is more than the number of grantees to be selected, the selection shall be made by drawing lots from amongst them.
6. (7) While granting land under this section, the Collector or the authorised officer shall ensure that as far as possible the total land held by the person after granting does not exceed one hectare of land falling under sub-clause (a) of clause (5) of section 2 or one and half hectares of land falling under sub-clause (b) of that clause or two hectares of land falling under sub-clause (c) or (d) of that clause, or three hectares of land falling under sub-clause (e) of that clause.
7. (8) Where land used for the purposes of horticulture vests in the State Government under section 21, it shall be granted on the condition that land shall continue to be used for that purpose even after the grant.
8. (9) Where land which vests in the State Government under section 21 is grazing land or tank land or land notified under sub-section (1), the State Government may dispose it of in such manner as it thinks fit.
9. (10) The occupancy price payable in respect of surplus land granted as aforesaid shall be equal to the amount of compensation calculated under clause (a) or clause (b), and clauses (c) and (f) of section 23 for that land, irrespective of the actual amount of compensation awarded therefor; and may be paid by the grantee in annual instalments not exceeding fifteen,the first instalment being payable at any time within two years from the date of taking possession of the land, with option to pay any or all instalments before the due date. Where the occupancy price is paid in instalments, simple interest at the rate of three per cent. per annum shall be payable on the amount of the occupancy price remaining unpaid : Provided that, when the compensation for the surplus land includes the cost of cultivation of the standing crop on such land, and if, when the land is granted there is no crop on the land, the occupancy price payable under this sub-section by the grantee of such land shall be reduced by an amount equal to the cost of cultivation of the standing crop. Explanation.- For the purposes of this section-
   • (a) a serving member of the armed forces means a serving member of the armed forces of the Union;
   • (b) an ex-serviceman means a former member of the armed forces of the Union (not being a person who has ceased to be a member of the armed forces as a result of his being duly dismissed or discharged after a court martial or on account of bad character or as a result of desertion, or who has not been attested);
   • (c) a dependant in relation to any such serving member or ex-servicemen means his widow, son, sons son, unmarried daughter, father or mother-in that order, whose gross annual income for the year immediately preceding the month in which surplus land is granted under this section does not exceed 4[Rs.12,000];
   • (d) "Scheduled Castes" means such castes, races or tribes or parts of, or groups within such castes, races or tribes, as are deemed to be Scheduled Castes in relation to the State of Maharashtra under article 341 of the Constitution of India;
   • (e) "Scheduled Tribes" means such tribes or tribal communities or parts of, or groups within such tribes or tribal communities as are deemed to be Scheduled Tribes in relation to the State of Maharashtra under article 342 of the Constitution of India].

1[27A. Power of Collector to grant land for public purposes, etc.- Notwithstanding anything contained in section 27,-

1. (1) the Collector may, with the previous approval of the State Government, grant or make available any surplus land for any public purpose only if any Government land is not suitable or any other land is not found suitable for acquisition, for such public purpose, under the Land Acquisition Act, 1894 (1 of 1894);
2. (2) where any surplus land belonging to any industrial undertaking vests in the State Government on or after the commencement date, the State Government may, if it considers necessary in the interest of efficient use of the land for agriculture and its efficient management, direct that the said land shall be disposed of in the manner provided for in section 28-1AA].

1[(1) Where any land held by an industrial undertaking is acquired by, and vests in, the State Government under section 21, such land being land which was being used for the purpose of producing raw material for the manufacture of any goods, articles, or commodities by the undertakings, the State Government shall take care to ensure that the acquisition of land does not affect adversely the production of raw material].

1. (2) Notwithstanding anything contained in section 27 , but subject to any rules made in this behalf for the purpose of 2[ensuring] the full and efficient use of the land for agriculture and its efficient management, the State Government,-
   • (a) may, if it is in the opinion of that Government necessary for the purpose aforesaid (such opinion being formed after considering the representation of persons interested therein) maintain the integrity of the area so acquired, in one or more compact blocks, and
   • (b) may, subject to such terms and conditions 3 * * * grant the land or any part thereof to a joint farming society (or a member thereof) consisting as far as possible, of-
     • (i) persons who had previously leased such land to the undertaking,
     • (ii) agricultural labour (if any) employed by the undertaking on such land,
     • (iii) technical or other staff engaged by the undertaking on such land or in relation to the production or supply of any raw material,
     • (iv) adjoining landholders who are small holders,
     • (v) landless persons : Provided that, the State Government may,-
   • (a) for such period as is necessary for the setting up of joint farming societies as aforesaid being not more than three years in the first instance (extensible to a further period not exceeding two years) from the date of taking possession of the land, direct that the land acquired, or any part thereof, shall be cultivated 4[by one or more farms run or managed by the State, or by one or more corporations (including a company) owned or controlled by the State;] 5* * * * * * * * 6* * * * * * * *
2. (3) The State Government may provide that,
   • (a) for the breach of any term or conditions referred to in clause (b) of sub-section (2), or 7* * * * * * * * 8* * * * * * * *
   • (d) for any other reason it is undesirable in the interest of the full and efficient cultivation of the land, that the joint farming society should continue to cultivate the land, the grant shall, after giving three months notice of termination thereof and after giving the other party reasonable opportunity of showing cause, be terminated, and the land resumed. Thereafter, the State Government may make such other arrangement as it thinks fit for the proper cultivation of the land and maintenance of the production 9[of raw material].

28-1A.- [Interim arrangement for grant of land, pending setting of joint farming societies in accordance with scheme.] Deleted by Mah. 27 of 1970, s. 71

1[28-1AA. Power of State Government to grant land to State Corporations.- (1) The State Government may, by notification in the Official Gazette, not later than ninety days from the commencement of the Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 1970 (Mah. XXVII of 1970), grant the surplus land taken over from the industrial undertakings and referred to in section 28 and which is being cultivated by one or more corporations, (including a company) owned and controlled by the State to such corporation or corporations, as the case may be, subject to such terms and conditions, including in particular, the condition of maintaining the integrity of the surplus land, in one or more compact blocks 2**. On the grant of such surplus land to one or more corporations as aforesaid the provisions of section 28 so far as they provide for setting up of joint farming societies shall not apply in relation to such surplus land.

1. (2) The State Government may provide that,-
   • (a) for the breach of any term of condition referred to in sub-section (1), or (b)if it considers after such inquiry as it thinks fit, that the production 3[of raw material] is not maintained at the level or in the manner which, with proper and efficient management it ought to be maintained, or 4[(b-1) it is considered necessary by the State Government for any public purpose to take away all or part of the land presently vested in the Corporation (including a company), or]
   • (c) for any other reason it is undesirable in the interest of the full and efficient cultivation of the land, that the corporation (including a company) should continue to cultivate the land, the grant shall, after giving three months notice of termination thereof and after giving the corporation reasonable opportunity of showing cause, be terminated, and the land resumed. Thereafter, the State Government may itself take steps by running or managing one or more farms for the proper cultivation of the land 5[and maintenance of the 6[production of raw material or may dispose of the land in the manner as provided in sub-sections (3) and (3A)]. 7* * * * * * * 8[(3) The State Government may, subject to the provisions of sub-section (4), after ascertaining the views of the persons interested in the land referred to in sub-section (1), also grant such land to a person who had previously leased his land to the undertaking, who (not being a public trust), requires that land for his personal cultivation, to the extent of the ceiling area as stipulated in the Act, or the actual area of the land leased by such person to the undertaking, whichever is less, subject to such other terms and conditions as may be specified in this behalf : Provided that, a person, who was required to file return under section 12 or 12A of the Act in respect of the lands held by him as on the 19th September 1975, and whose land was declared surplus under the provisions of this Act, shall not be entitled to such grant : Provided further that, a person, who has applied for grant of such land after 90 days from the commencement of the Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 2001 (Mah. XVII of 2003), shall not be eligible for grant of such land :] 9[Provided also that, a person who had not applied for grant of such land within the period of 90 days from the date of commencement of the Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 2001 (Mah. XVIII of 2003), or who has applied for grant of such land after the said period, shall be eligible for grant of such land if he applies for grant of such land within a period of 90 days from the date of commencement of the Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 2006 (Mah. VIII of 2006).] 10[Provided also that, a person who had not applied for grant of such land within the period of 90 days from the date of commencement of the Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 2001 (Mah. XVII of 2003), or who has applied for grant of such land after the said period, shall be eligible for grant of such land if he applies for grant of such land within a period of 90 days from the date of commencement of the Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 2011 (Mah. I of 2012). 11[(3-1A) Notwithstanding anything contained in this section and section 29,-
   • (a) if the lands leased by a person to the industrial undertaking were Class-I occupancy lands then the lands granted to such person or his legal heirs under sub-section (3) on Class-II occupancy shall be deemed to have been granted on Class-I occupancy, without charging any premium therefor ;
   • (b) if the lands leased by a person to the industrial undertaking were Class-II occupancy lands, then the lands granted to such person or his legal heirs under sub-section (3) on Class-II occupancy may be converted into Class-I occupancy, if the relevant Act applicable to such lands or rules framed thereunder provides for such conversion, as per the provisions of the said Acts and rules.] 12[(3A) Notwithstanding anything contained in sub-section (3), the State Government may dispose of the lands vested in the Maharashtra State Farming Corporation Limited, for a public purpose to the Government or Semi-Government Institution or Municipal Corporation, Municipal Council, Nagar Panchayat or Village Panchayat at the rates fixed by the State Government on such terms and conditions as may be specified by it, by special or general order issued in this behalf. Explanation.- For the purposes of this sub-section, the expression "dispose of the lands for the public purpose" means disposal of land for,-
   • (a) educational, medical, public health, social welfare or cultural purposes; or any other purpose mentioned in the Development Plan under section 22 of the Maharashtra Regional and Town Planning Act, 1966 (Mah. XXXVII of 1966); or any other public purpose included in sub-section (1) of section 2 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013), situated within the vicinity of five kilometers from,-
     • (i) the municipal area of a Council or Nagar Panchayat as defined in clause (24) of section 2 of the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965 (Mah. XL of 1965);
     • (ii) the larger urban area specified under sub-section (2) of section 3 of the Maharashtra Municipal Corporations Act (LIX of 1949); or
     • (iii) the boundary of gaothan or village site as defined in clause (10) of section 2 of the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966); and
   • (b) for rehabilitation of the project affected persons of a public project notified by the Government for this purpose.]
2. (4) The 13* * * particulars of land to be granted under sub-section (3) shall be such as the State Government may, having due regard to the need to maintain the integrity of the farm in one or more compact blocks, by order in writing, specify. 14 * * * * * * * * 15 * * * * * * * *

128-1B.-[Supply of raw material and regulation of fair price]. 2Deleted from 1st October 1969 by Mah. 50 of 1973, s. 4(1).

28-A. [Special provision in respect of certain holdings to ensure their integrity, etc.] Deleted by Mah. 21 of 1975, s. 22.

1. (1) Without the previous sanction of the Collector, no land granted under section 27 or granted to a joint farming society under section 28, shall be -
   • (a) transferred, whether by way of sale (including sale in execution of a decree of a civil court or of an award or order of any competent authority) or by way of gift, mortgage, exchange, lease or otherwise; or
   • (b) divided whether by partition or otherwise, and whether by a decree or order of a civil court or any other competent authority, such sanction shall not be given otherwise than in such circumstances, and on such conditions 1[including condition regarding payment of premium or nazarana to the State Government], as may be prescribed : 2[Provided that, no such sanction shall be necessary where land is to be leased by a serving member of the armed forces or where the land is to be mortgaged as provided in sub-section (4) of section 36 of the Code for raising a loan for effecting any improvement of such land.]
2. (2) If sanction is given by the Collector to any transfer or division under sub-section (1) subsequent transfer or division of land shall also be subject to the provisions of sub-section (1).
3. (3) Any transfer or division of land, and any acquisition thereof, in contravention of sub-section (1) or sub-section (2) shall be invalid; and as a penalty therefor, any right, title and interest of the transferor and transferee in or in relation to such land shall, after giving him an opportunity to show cause, be forfeited by the Collector and shall without further assurance vest in the State Government : 3[Provided that, after the commencement of the Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 2018 (Mah. LXXI of 2018), no such land shall be forfeited by the Collector for contravention of the provisions of sub-section (1) of sub-section (2), as the case may be, if the transferor, transferee or any other person interested in such land makes the payment of 4[an amount of seventy five per cent., of the market value of such land ascertained as per the current Annual Statement of Rates published under the provisions of the Maharashtra Stamp (Determination of True Market Value of Property) Rules, 1995.]: 5* * * 6[(4) On payment of the amount referred to in the first proviso to sub-section (3),-
   • (i) no further proceedings for violation of the provisions of sub-section (1) or sub-section (2) shall be initiated ;
   • (ii) where the proceedings are already initiated before the date of commencement of the Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 2018 (Mah. LXXI of 2018), such proceedings shall abate and the Collector shall make an order to that effect.]

1[29A. Conversion of Occupancy of land granted under section 27.- Notwithstanding anything contained in section 29, the Collector may convert lands granted under section 27 on Class-II occupancy into Class-I occupancy,-

1. (i) after lapse of ten years from the date of grant of such land; and
2. (ii) if there is no breach of any of the conditions for grant of such land; or if there is a breach of any of such conditions, then after regularization of such breach, on payment of such conversion premium and after following such procedure and subject to such other terms and conditions as may be prescribed.]