Chapter V RESTRICTIONS ON TRANSFERS OF AGRICULTURAL LANDS, MANAGEMENT OF UNCULTIVATED LANDS AND ACQUISITION OF ESTATES AND LANDS.

1. (1) Save as provided in this Act-
   • (a) no sale (including sales in execution of a decree of a Civil Court or for recovery of arrears of land revenue or for sums recoverable as arrears of land revenue), gift, exchange or lease of any land or interest therein, or
   • (b) no mortgage of any land or interest therein, in which the possession of the mortgaged property is delivered to the mortgagee, shall be valid in favour of a person who is not an agriculturist 1[or who being an agriculturist 2[will after such sale, gift, exchange, lease or mortgage, hold land exceeding two thirds of the ceiling area determined under the Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 1961(Mah. XXVII of 1961)] or who is not an agricultural labourer] : Provided that the Collector or an officer authorised by the 3[State] Government in this behalf may grant permission for such sale, gift, exchange, lease or mortgage, on such conditions as may be prescribed. 4[Explanation.- For the purpose of this sub-section, the expression 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]. 5[(1A) Where any condition subject to which permission to transfer was granted is contravened, then the land in respect of which such permission was granted shall be liable to be forfeited in accordance with the provisions of section 84CC. (1B) Where permission is granted to any transfer of land under sub-section (1) any subsequent transfer of such land shall also be subject to the provisions of sub-section (1). 6[(1C) Nothing in sub-section (1) shall apply to the 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 (Mah. XXXVII of 1966) or any other law for the time being in force, 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, as the case may be, prepared under the Maharashtra Regional and Town Planning Act, 1966 (Mah. XXXVII of 1966) or any other law for the time being in force : Provided that, any transfer of land in favour of a person who is not an agriculturist for any non-agricultural use such as residential, commercial, industrial or any other non-agricultural use, shall be subject to the condition that such land shall be put to such non-agricultural use within a period of five years from the date of transfer, and due entry of such condition shall be made in the Record of Rights of such land : Provided further that, in respect of land transferred for any non-agricultural use permissible in the draft or final Development plan or Regional plan or Town Planning Scheme, as the case may be, after the expiry of the aforesaid period of five years, an extension of time not exceeding further five years may be granted by the Collector on payment of non-utilization charges at the rate of two per cent. of the market value of such land per annum, where such market value shall be calculated as per the Annual Statement of Rates published under the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995, as applicable on the date of grant of such extension of time : Provided also that, if the transferee, including subsequent transferee, if any, fails to put the land to non-agricultural use permissible in the draft or final Development plan or Regional plan or Town Planning Scheme, as the case may be, within a period of five years or, where non-utilization charges as aforesaid have been paid, within the total period of ten years, then the Collector shall resume such land after giving one month's notice to the said defaulting transferee, and the land so resumed by the Collector shall vest in the Government free from all encumbrances, and shall first be offered to the original land holder by way of grant, on the same tenure on which it was initially held by such original land holder before its transfer for such nonagricultural use and at the same price at which it had been transferred by the original land holder for such non-agricultural use : Provided also that, if the original land holder fails to accept the offer to purchase the said land within a period of ninety days from the date of receipt of such offer from the Collector or having accepted such offer, fails to deposit with the Collector the required amount within a further period of ninety days, such land shall be auctioned for any use consistent with and permissible under the draft or final Development plan or Regional plan or Town Planning Scheme, as the case may be; and in both the cases, the defaulting transferee shall only be entitled to compensation equal to the price at which such land had been purchased by him and the Collector shall remit such compensation to the defaulting transferee within a period of ninety days from the date of receipt of payment under the said auction : Provided also that, if a person who is not an agriculturist fails to utilize the said land for the non-agricultural use permissible in the draft or final Development plan or Regional plan or Town Planning Scheme, as the case may be, fully or partly, and wants to sell the same subsequently before the expiry of the total specified period of ten years, he may, subject to the payment of non-utilization charges specified in the second proviso, be permitted by the Collector to do so for any non-agricultural use permissible in the draft or final Development plan or Regional plan or Town Planning Scheme, as the case may be, for the remaining period out of the specified period of ten years, from the date of first transfer of the said land for such non-agricultural use, subject to the condition that the transferee shall have to deposit transfer charges at the rate of twenty-five per cent. of the market value of such land as per current Annual Statement of Rates].
2. (2) Nothing in this section shall be deemed to prohibit the sale, gift, exchange or lease of a dwelling house or the site thereof or any land appurtenant to it in favour of an agricultural labourer or an artisan 7[or a person carrying on any allied pursuit]. 8[(3) Nothing in this section shall apply or be deemed to have applied to a mortgage of any land or interest therein effected in favour of a co-operative society as security for the loan advanced by such society 9[or any transfer declared to be a mortgage by a court under section 24 of the Bombay Agricultural Debtor’s Relief Act, 194710 (Bom. XXVIII of 1947)] ]. 11[(4) Nothing in section 63A shall apply to any sale made under subsection (1)].

1[63A. Reasonable price of land for the purpose of its sale and purchase.- (1) Except as otherwise expressly provided in this Act, the price of any land sold or purchased under the provisions of this Act shall consist of the following amounts, namely:-

1. (a) an amount not being less than 20 times the assessment levied or leviable in respect of the land and not being more than 200 times such assessment excluding, however, for the purpose of calculation, the amount of water rate, if any, levied under section 55 of the Bombay Land Revenue Code, 1879 (Bom. V of 1879) and included in such assessment;
2. (b) the value of any structures, wells and embankments, constructed, permanent fixtures made and trees planted on the land.

1. (2) Where under the provisions of this Act any land is sold or purchased by mutual agreement, such agreement shall be registered before the Mamlatdar, and the price of the land shall, subject to the limits specified in sub-section (1), be such as may be mutually agreed upon by the parties. In the case of disagreement between the parties, the price shall be determined by the Tribunal having regard to the factors mentioned in this section.
2. (3) Where in the case of a sale or purchase of any land under this Act, the Tribunal or the Mamlatdar has to fix the price of such land under this Act, the Tribunal or the Mamlatdar, as the case may be, shall, subject to the quantum specified in sub-section (1), fix the price having regard to the following factors, namely :-
   • (a) the rental values of lands used for similar purposes in the locality;
   • (b) the structures and wells constructed and permanent fixtures made and trees planted, on the land by the landlord or tenant;
   • (c) the profits of agriculture of similar lands in the locality;
   • (d) the prices of crops and commodities in the locality;
   • (e) the improvements made in the land by the landlord or the tenant;
   • (f) the assessment payable in respect of the land; and
   • (g) such other factors as may be prescribed]. 2[Explanation.- For the purpose of this section the expression ‘assessment’ shall have the meaning assigned to it in section 8].

1[63-1A. Transfer to non-agriculturist for bona-fide industrial use.- (1) Notwithstanding anything contained in section 63, it shall be lawful for a person to sell land, without permission of the Collector, to any person who is or is not an agriculturist and who intends to convert the same to a bona fide industrial use 2[or for Integrated Township Projects, as the case may be,] where such land is located within,- 3[(i) the agricultural zone of a draft or final Regional Plan or draft or final Town Planning Scheme, as the case may be, prepared under the Maharashtra Regional and Town Planning Act, 1966 (Mah. XXXVII of 1966) or any other law for the time being in force, and plans or schemes and the development control regulations or rules framed under such Act or any of such laws for the time being in force permit industrial use of land; or]

1. (ii) the area where no such plan or scheme as aforesaid exists 4[or ]: 5[(iii) the area taken over by a private developer for development 6[of an Integrated Township Project: ] 7[Provided that, where such purchase of land is for bona fide industrial use, it shall be subject to the condition that such land shall be put to bona fide industrial use within a period of five years from the date of purchase: Provided further that, after the expiry of the aforesaid period of five years, an extension of time not exceeding further five years may be granted by the Collector on payment of non-utilization charges at the rate of two per cent. of the market value of such land per annum, where such market value is calculated as per the Annual Statement or Rates published under the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995, as applicable on the date of grant of such extension of time: Provided also that, if the purchaser fails to put the land to bona fide industrial use within a period of five years or, where non-utilization charges as aforesaid have been paid, within a total period of ten years, then the Collector shall resume such land after giving one month's notice to the said defaulting purchaser, and the land so resumed by the Collector shall vest in the Government, free from all encumbrances, and shall first be offered to the original land holder by way of grant, on the same tenure on which it was initially held by such land holder before its sale for such bona fide industrial use and at the same price at which it had been sold by the original land holder for such bona fide industrial use: Provided also that, if the original land holder fails to accept the offer to purchase the said land within a period of ninety days from the date of receipt of such offer from the Collector or having accepted such offer, fails to deposit with the Collector the required amount within a further period of ninety days, such land shall be auctioned for any use consistent with and permissible under the Development plan or Regional plan or Town Planning Scheme, as the case may be, if any, sanctioned under the Maharashtra Regional and Town Planning Act, 1966 (Mah. XXXVII of 1966) or any other law for the time being in force; and in both the cases, the defaulting purchaser shall only be entitled to compensation equal to the price at which such land had been purchased by him, and the Collector shall remit such compensation to the defaulting purchaser within a period of ninety days from the date of receipt of payment under the said auction:] Provided also that, the purchaser who fails to put the land to bona-fide industrial use within five years from the date of the purchase, and is on the date of coming into force of the Maharashtra Tenancy and Agricultural Lands Laws (Amendment) Act, 2004 (Mah. XXV of 2005) holding such land without having been put to the bona-fide industrial use, shall be permitted to put such land to the bona-fide industrial use within the remaining period from the total period of fifteen years, subject to the condition that,

1. (a) In the land purchased under sub-section (1) was held by the seller as the Occupant Class-II, such purchaser land holder shall pay an additional amount equal to 48 per cent. of the price for which it was originally purchased and three times of an annual assessment of non-agricultural tax payable under the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966) as a non-utilisation tax per year;
2. (b) if the land purchased under sub-section (1) was held by the seller as the Occupant Class-I, such purchaser land holder shall pay an amount equal to three times of an annual-assessment of the non-agricultural tax payable under the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966) as a non-utilisation tax per year: Provided also that the provisions of this sub-section shall not apply to the areas notified as the Eco-sensitive zone by the Government of India;] Provided also that, where the land being sold is owned by a person belonging to the Scheduled Tribe, such sale of land shall be subject to the provisions of sections 36 and 36A of the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966) and of the Maharashtra Restoration of Lands to Scheduled Tribes Act, 1974 (Mah. XIV of 1975).

1. (2) If, the land being purchased under sub-section (1) is held by Occupant-Class II, the purchaser shall pay to the Collector, an amount equal to 8[two per cent. of the purchase price, in case the purchase of land is for bona-fide industrial use and fifty per cent. of the purchase if the purchase of land is for 9[for Integrated Township Project] within one month of the execution of the sale-deed irrespective of the tenure of such land. This payment shall be in lieu of any nazarana or such other charges which may otherwise be payable by such Occupant-Class II by or under the provisions of the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966). In addition, the purchaser of such land shall pay the non-agricultural assessment as may be levied by the Collector under sections 67 and 115 of the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966): 10[Provided that, if such purchaser fails to deposit such amount within one month, then such purchaser shall pay to the Government an amount equal to seventy-five per cent. of the purchase price or the market value of the land as per the Annual Statement of Rates of that year, whichever is higher.]
2. (3) The person purchasing the land under sub-section (1) for conversion thereof for a bona fide industrial use, 11[or for Integrated Township Project, as the case may be] give intimation of the date, on which the change of user of the land commenced, within thirty days from such date, to the collector.
3. (4) If the person fails to inform the Collector within the period specified in sub-section (3), he shall be liable to pay in addition to the non-agricultural assessment which may be leviable by or under the provisions of the Maharashtra Land Revenue Code, 1966 such penalty not exceeding twenty times the amount of non-agricultural assessment as the Collector may, subject to the rules, if any, made by the State Government in this behalf, direct. 12[(5) If the person purchasing the land under sub-section (1) for conversion thereof for a bona fide industrial use, fails to utilize the said land for bona fide industrial use, fully or partly, and wants to sell the same before the expiry of the total specified period of ten years, he may, subject to the payment of non-utilization charges specified in the second proviso to sub-section (1), be permitted by the Collector to do so for the remaining period out of the specified period of ten years from the date of original purchase, subject to the following conditions, namely :-
   • (i) where the said land is to be sold for bona fide industrial use, the transferor shall have to deposit with the Collector the transfer charges at the rate of twenty-five per cent. of the market value of such land as per the current Annual Statement of Rates;
   • (ii) where the said land is to be sold for any non-agricultural purpose other than the bona fide industrial use, which is consistent with the draft or final Development plan or Regional plan or Town Planning Scheme, if any, made under the Maharashtra Regional and Town Planning Act, 1966 (Mah. XXXVII of 1966) or any other law for the time being in force, the transferor shall have to deposit with the Collector conversion charges equal to fifty per cent. of the market value of such land as per the current Annual Statement of Rates and in case of Occupant Class-II land, an additional amount equal to forty-eight per cent. of the price at which such land was originally purchased, in lieu of the nazarana]. Explanation.- For the purposes of this section,-
   • (a) the expression "bona fide industrial use" means the activity of manufacture, preservation of processing of goods, or any handicraft, or industrial business or enterprise, carried on by any person, 13[or the activity of tourism within the areas notified by the State Government as the tourist place or hill station,] and shall include construction of industrial buildings used for the manufacturing process or purpose, or 14[power projects and ancillary industrial usage like research and development units pertaining to bona fide industrial use, godown, canteen, office building of the industry concerned], or providing housing accomodation to the workers of the industry concerned, or establishment of an industrial estate including a co-operative industrial estate, service industry, cottage industry, gramodyog units or gramodyog vasahats. 15[(aa) "Integrated Township Project" means the Integrated Township Project or projects under the Regulations framed for development of Integrated Township by the Government under the provisions of the Maharashtra Regional and Town Planning Act, 1966 (Mah. XXXVII of 1966) or any other law for the time being in force].
   • (b) "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 and persons, who belong to the tribes or tribal communities, or parts of, or groups within, tribes or tribal communities specified in Part IX of the Schedule to the Order made under the said article 342, but who are not resident in the localities specified in that order who nevertheless need the protection of this section (and it is hereby declared that they do need such protection) shall, for the purposes of this section, be treated in the same manner as members of the Scheduled Tribes].

1[64. Sale of agricultural land to particular person.- (1) Where a landlord intends to sell any land, he shall apply to the Tribunal for determining the reasonable price thereof. The Tribunal shall thereupon determine the reasonable price of the land in accordance with the provisions of section 63A. The Tribunal shall also direct that the price shall be payable either in lump sum or in annual instalments not exceeding six carrying simple interest at 4 1/2 per cent. per annum : Provided that, in the case of sale of the land in favour of a permanent tenant when he is in possession thereof, the price shall be at six times the annual rent.

1. (2) After the Tribunal has determined the reasonable price, the landlord shall simultaneously in the prescribed manner make an offer-
   • (a) in the case of agricultural land,-
     • (i) to the tenant in actual possession thereof, notwithstanding the fact that such land is a fragment; and
     • (ii) to all persons and bodies mentioned in the priority list;
   • (b) in the case of a dwelling house, or a site of a dwelling house or land appurtenant to such house when such dwelling house, site or land is not used or is not necessary to carry on agricultural operations in the adjoining lands-
     • (i) to the tenant thereof;
     • (ii) to the person residing in the village who is not in possession of any dwelling house : Provided that if there are more than one such person the offer shall be made to such person or persons and in such order of priority as the Collector may determine in this behalf having regard to the needs of the following persons, namely :-
     • (i) an agricultural labourer,
     • (ii) a artisan,
     • (iii) a person carrying on an allied pursuit,
     • (iv) any other person in the village.
2. (3) The persons to whom such offers are made shall intimate to the landlord within one month from the date of receipt of the offer whether they are willing to purchase the land at the price fixed by the Tribunal.
3. (4) (a) If only one person intimates to the landlord under sub-section (3) his willingness to accept the offer made to him by the landlord under sub-section (2), the landlord shall call upon such person by a notice in writing in the prescribed form to pay him amount of the reasonable price determined by the Tribunal or to deposit the same with the Tribunal within one month or such further period as the landlord may consider reasonable from the date of receipt of the notice by such person.
   • (b) If more than one person intimate to the landlord under sub-section (3) their willingness to accept the offers made to them by the landlord under sub-section (2), the landlord shall call upon by a notice in writing in the prescribed form the person having the highest priority in the order of priority given in sub-section (2) to pay him the amount of the reasonable price determined by the Tribunal or to deposit the same with the Tribunal within one month or such further period as the landlord may consider reasonable from the date of receipt of the notice by such person.
4. (5) If the person to whom a notice is given by the landlord under sub-section (4) fails to pay the amount of the reasonable price to the landlord or to deposit the same with the Tribunal within the period referred to in sub-section (4) such person shall be deemed to be not willing to purchase the land and the landlord shall call upon in the manner provided in sub-section (4) the person who stands next highest in the order of priority and who has intimated his willingness to the landlord under sub-section (3).
5. (6) If any dispute arises under this section regarding-
   • (a) the offer made by the landlord under sub-section (2), or
   • (b) the notice given by the landlord under sub-sections (4) or (5), or
   • (c) the payment or deposit of the reasonable price, or
   • (d) the execution of the sale-deed, such dispute shall be decided by the Tribunal.
6. (7) (a) Notwithstanding anything contained in the foregoing provisions of this section a landlord may after obtaining the previous permission of the Tribunal as provided in the next succeeding clause (b) sell any land notwithstanding the fact that such land is a fragment to the tenant in actual possession thereof at a price mutully agreed upon between him and the tenant subject to the provisions of section 63A.
   • (b) The landlord shall make an application in writing to the Tribunal for permission to sell the land at such price. On receipt of the application, the Tribunal shall grant the permission if, on holding an inquiry, it is satisfied that the price has been agreed to voluntarily by the tenant.
7. (8) Any sale made in contravention of this section shall be invalid.
8. (9) If a tenant refuses or fails to purchase the land or a dwelling house offered to him under this section, and the land or the dwelling house, as the case may be, is sold to any other person under this section, the landlord shall be entitled to evict such tenant and put the purchaser in possession].

1[64A. Exemption to sales by or in favour of co-operative societies.- Nothing in sections 63 and 64 shall apply to sales effected by or in favour of a co-operative society under the Bombay Co-operative Societies Act, 1925 (Bom. VII of 1925).]

1. (1) If it appears to the 1[State] Government that for any two consecutive years, any land has remained uncultivated 2[or the full and efficient use of the land has not been made for the purpose of agriculture, through the default of the holder or any other cause whatsoever not beyond his control] the 3[State] Government may after making such inquiry as it thinks fit, declare that the management of such land shall be assumed. The declaration so made shall be conclusive.
2. (2) On the assumption of the management, such land shall vest in the 4[State] Government during the continuance of the management and the provisions of Chapter IV shall mutatis mutandis apply to the said land : 5[Provided that the Manager may in suitable cases give such land on lease at rent even equal to the amount of its assessment : Provided further that, if the management of the land has been assumed under sub-section (1) on account of the default of the tenant, such tenant shall cease to have any right or privilege under Chapter II or III, as the case may be, in respect of such land, with effect from the date on and from which such management has been assumed.]

1. (1) If at any time it appears to the 1[State] Government that any estate or land, the management of which has been assumed under the provisions of this Act or the interest of any other person in such estate or land should in the public interest, be compulsorily acquired, it shall be lawful for the 2[State] Government to publish a notification to that effect in the Official Gazette. The notification so published shall be conclusive that the estate, land or interest is needed to be acquired in public interest.
2. (2) On the publication of the notification, the Collector shall cause publicity to be given to it at convenient places in the locality and also give notices to the holder of the estate, land or interest and to all persons known or believed to be interested therein.
3. (3) The Collector shall then make an inquiry in the prescribed manner to determine the value of the estate, land or interest which has been acquired. For the said purpose the Collector shall have the same powers as are vested in courts, in respect of the following matters under the Code of Civil Procedure, 1908 (V of 1908), in trying a suit :-
   • (a) proof of facts by affidavits;
   • (b) summoning and enforcing the attendance of any person and examining him on oath; and
   • (c) compelling the production of documents.
4. (4) In determining the value the Collector shall take into consideration-
   • (a) the assessment payable in respect of the estate or land;
   • (b) the profits of agriculture and cultivation of the estate or land and of similar estates and lands in the locality;
   • (c) the price of crops and commodities in the locality;
   • (d) exemption from assessment and other privileges enjoyed by the holder and other persons interested in respect of the land, estate and interest;
   • (e) any other matter which may be prescribed.
5. (5) After determining the value of the estate, land or interest the Collector shall make an award which shall contain-
   • (a) the particulars of the estate, land or interest,
   • (b) the compensation which in his opinion should be allowed for the land,
   • (c) the apportionment of the compensation among all persons known, or believed to be interested.
6. (6) Such award shall be filed in the Collectors office and shall, except as hereinafter provided, be final and conclusive evidence as between the Collector and persons interested whether they have respectively appeared before the Collector or not all the particulars including area and value of the estate, land or interest and the apportionment of compensation.
7. (7) When the Collector has made an award, the estate, land or interest therein shall vest in 3[Government] free from all incumbrances.