Collector’s permission not required for sale, lease of tenancy lands

15-02-14

* The purchaser has to just pay ‘nazarana’, which amounts to forty times the land revenue on a particular piece of land

Staff Reporter
Now, permission of District Collector will not be required to sale or lease out tenancy lands. The purchaser will have to just pay an amount that is forty times the land revenue on the said piece of land. This will help the builders and developers in getting tenancy lands without the ‘time-consuming’ procedure, and at a very low cost.
Revenue and Forests Department has issued a circular regarding the amendments in tenancy laws on February 11. As per the circular, prior permission of District Collector need not be obtained before sale of lands distributed under tenancy rights. The laws to which amendments have been made include Bombay Tenancy and Agricultural Lands Act, Hyderabad Tenancy and Agricultural Lands Act, and Bombay Tenancy and Agricultural Lands (Vidarbha Region) Act.
Amendments have been made to Section 43, Section 50B, and Section 57 of the said laws. Of these, amendment to Section 57 applies to Vidarbha region. As per the amendment, a proviso has been added to sub-section (1). The proviso clears way for occupant/tenant ‘to sell, gift, exchange, mortgage, lease, or assign’ the land in respect of which 10 years have elapsed from the date of purchase or sale of land. Such a sale, gift etc would be subject to conditions that seller should pay a ‘nazarana’ (charges) equal to forty times the assessment of the land revenue to the Government before selling of the land. In such cases, the purchaser has to a farmer, and should not hold land in excess of ceiling area permissible under Maharashtra Agricultural Lands (Ceiling on Holdings) Act.
According to sources, the amendments will benefit the builders and developers secure tenancy lands. Due to the clause of District Collector’s prior permission, scrutiny of records took place previously. This scrutiny took 40-45 days. With the amendment, the Collector’s permission is not necessary. Thus, scrutiny of records will not take place at the level of Revenue authorities, said an official.
Further, the land revenue is very low. Land revenue is calculated on the basis of productivity and gradation of soil. In case of agricultural lands, payable land revenue is nine times the original land revenue mentioned on 7/12 certificate (Record of Rights document). This includes Gram Panchayat cess equal to original land revenue, Zilla Parishad cess equal to five times the original land revenue, and Panchayat Samiti cess equal to twice the original land revenue. As far as Vidarbha region is concerned, many lands are not irrigated. The original land revenue is in the wide range of Rs 4 to Rs 600 per hectare per year. Thus, even if a purchaser has to pay ‘nazarana’ equal to forty times the land revenue, it would be in the range of Rs 1,440 to Rs 2,16,000.
“Obviously, this move will help builders/developers legalise their deals already effected in past few years,” said an official. According to sources, Revenue Department officials had made some suggestions in some of the meetings held on the issue a few years ago. The officials had suggested that provisions of Maharashtra Agricultural Land (Ceiling on Holdings) Act should be considered while allowing sale, lease, gift etc of tenancy lands. Had those provisions been considered, a purchaser would have to buy the land at half the ready reckoner (RR) rate for the said property.

What prompted Govt to amend tenancy laws? 

The tenancy laws were enacted when big landlords in Maharashtra did not till their lands. They leased out their lands to others for tilling. To protect the rights of these tenants, tenancy laws came into being at a later stage. As per the Government circular, “The situation has changed now. There are no big landlords. But, conditions in the said laws make it difficult for tenants to sale the lands. Besides, the provisions in the laws made the process too tedious. Hence, the condition for prior permission has been relaxed.” State Cabinet had cleared the proposal after discussion in its meeting held on May 2, 2012. The Bill to amend the said laws was moved and passed during monsoon session of State Legislature in 2012. Now, after the President’s assent, the amendment has been notified vide a gazette publication.