Saturday, December 27, 2008

A comment on Section 44 A ( M.L.R.C.) and Section 63 1A ( B.T.&A.L. Act.)



A comment on Section 44 A of Maharashtra Land Revenue Code and Section 63 1A of Bombay Tenancy and Agricultural Land Act.


With a view to promote industrial goal and to encourage the industrialist to start industries in Maharashtra, The State Government had announced New Industrial Policy 1993. The basic thrust of the New Industrial Policy was designed to deregulate and rationalize the rules and proceedings relating to setting up new industries in the State. According to the new Industrial Policy no permission of the Collector for purchase of agricultural land by an non agriculturist for converting the same for a bonafide industrial use is required, when such land is situated within the Industrial zone of a draft or final regional plan or draft, interim or final development plan or draft or final town planning scheme, or agricultural zone of such plan or scheme and the development control rules permit industrial use of land, or within the area where no such plan or scheme exits. However, where the total extent of such land proposed to be purchased exceeds ten hectares the purchaser is required to obtain prior permission of the Development Commissioner (Industries) or any other Officer authorized by the State Government in this behalf. Further, the user has to put the land so purchase for bona fide industrial use within a period of 5 years (now extended to 15 years) from the date of purchase of the land, failing which the person from whom the land is purchased shall have the right to repurchase the land at the price for which it was originally sold.

* Section 63 (Bar to Transfer of Agricultural Land to Non Agriculturist) of Bombay Tenancy and Agricultural Land Act, 1948 (BT & AL Act) and Section 44 ( MLRC) (rigid rules of conversion of Agricultural Land for Non Agriculture) was the hurdle for development in pursuance of in the Industrial Policy, 1993. Therefore, as the part of the industrial policy New section 63-1A of BT & AL Act was inserted by Maharashtra Act No.28 of 1994 and further suitable Amendment is made to it by Maharashtra Act No.25 of 2005.

* The said section 63-1A is made applicable to Special Township Projects, Tourist Place or Hill Station Development if the land is to "Bonafide Industrial Use". Bonafide Industrial Use of land means and includes :
(i) activity of manufacture
(ii) preservation or processing of goods,
(iii) handicraft industry
(iv) industrial business or enterprises,
(v) construction of industrial buildings used for manufacturing process or purpose,
(vi) power projects (wind energy projects)
Ancillary industrial usages :
(a) Research and Development,
(b) godowns, canteens,
(c) office building of the industry concerned
(d) providing housing accommodation to the workers of the industry concerned,
(e) constructing industrial estate including co-operative industrial estate, service industry, cottage industry, gramodyog units or gramodyog vasahats.
As a part of industrial policy, section-44A of the Maharashtra Land Revenue Code 1966 (MLR Code) has been amended by Maharashtra Act No.26 of 1994 so as to provide that no permission of Collector under section 42 and 44 of the said MLR Code shall be required for the conversion of use of the land for bonafide industrial use, if the land in question is situated within the industrial zone, the activities to be considered as 'bonafide industrial use' have been incorporated in explanation to section 44-A.

In the year 1999, Govt. of Maharashtra declared the New Tourism Policy in which 'Tourism' is assigned the "status of Industry". In order to extend all benefits of the New Industrial Policy of 1993 to the tourism industries in the state, the Government considered it expedient to include tourism activities within the areas notified by the State Government as the Tourist place or hill station, in expression "bonafide industrial use" and for that purpose by Maharashtra Ordinance No.IV of 2004 suitably amended the explanation to the said section 44-A with retrospective effect from 1st July 2000. Further, Section-44A suitably amended by Maharashtra Act No.26 of 2005 w.e.f. from 6th March 2004.

MAIN FEATURES:

The main features (after insertion of Section-63-1A), as amended by Maharashtra Act No.28 of 1994 and Maharashtra Act No.43 of 2005 and after insertion of Section-44A by Maharashtra Act 26 of 1994 and Maharashtra Act No.26 of 2005.

1) Made Applicable to Special Township Projects, Tourist Place or Hill Station Development and the time limit to put the proposed land to "Bonafide Industrial Use" is extended to fifteen years, from five years.

2) Within the project if certain lands falls under the category of Class-II, in such eventuality, for the land to be used for the bonafide industrial use the developer is required to pay to the Collector 2 % of the Purchase Price and 50 % of the Purchase Price, if the purchase of land is for Special Township Projects (STP) within one month of execution of the Sale Deed irrespective of the tenure of such land, this payment shall be in lieu of any Nazrana or such other charges payable by owner of occupant Class-II land under Maharashtra Land Revenue Code (MLR Code).

3) To purchase land for bonafide industrial use beyond 10Hectors (25Acres) permission has to be obtained from Development Commissioner (Industries).


Benefits:

1) The bar to Transfer Agricultural Lands to Non Agriculturist is relaxed, if the land is intended to be used for Bonafide Industrial Use i.e. Handicrafts, Industrial Business or enterprise, development of tourist place or hill station, energy projects, Special Township Project etc.

2) If the land exceeds 10 Hectors (25 Acres) permission from Development Commissioner (Industries) is to be obtained. Therefore, the bar of Agricultural Land Ceiling will not be applicable.

3) Section 44A of MLR Code is inserted by Mah. Act. 26 of 1994 and Mah. Act 26 of 2005. Further N.A. rules are also amended and the procedure of conversion of land to Non-Agricultural use (N.A.) to some extent. If the person so using the land for a bonafide industrial use if required to provide intimation of change of user of the land to the Tahsildar through Village Office in prescribed Form within 30 days from such date, under copy to the District Collector.

4) Benefits of Industrial Policy 1993, New Package Scheme of Incentive for tourism projects 1999, Tourism Policy 2006 and subsequent benefits.

Rohit Ramesh Purandare
M.A., B.Com., LL.B., D.I.P.L., G.D.C.&A.


(The data provided here is based on best knowledge of publisher and publisher is not responsible for any damage or lose caused because of its use by any body)