Purchase of Agricultural Land by Non-Agriculturist

A non-agriculturalist initially was not eligible to buy agricultural lands in Maharashtra. The

, 1948 (“MTAL”) barred the sale, gift, exchange, lease or mortgage (in which possession is delivered) of agricultural land to a non-agriculturist or to any other persons holding land in excess of two-thirds of the ceiling area as determined under the Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 1961, without the prior approval of the Collector.

Hence an application for permission from the Collector or any other officer authorized by the State Government by a non - agriculturist to acquire agricultural land was required to be obtained prior to the acquisition of agricultural land.

The MTAL was amended, and the following lands were to be excluded from the purview of agricultural lands requiring prior permission for the acquisition of agricultural land under MTAL:

1. Land situated within the limits of a Municipal Corporation; or

2. Land situated within the limits of a Municipal Council; or

3. Land situated within the jurisdiction of Special Planning Authority; or

4. Land situated within the jurisdiction of New Town Development Authority; or

5. Any land allocated for residential, commercial, industrial or any other non-agricultural use as proposed in the draft/final Regional plan or Town Planning Scheme prepared under the Maharashtra Regional and Town Planning Act, 1966.

By the amendment, a non-agriculturist can now acquire agricultural land for non-agricultural purposes (residential/commercial/industrial) if the land falls under any of the five exceptions mentioned above.

The acquisition of such agricultural lands imposes certain conditions on utilization of the land as follows:

1. The time frame for utilization: It is imperative for the person who acquires the agricultural land for residential/commercial/industrial or any other non-agricultural purpose to put the land to such use within five years from the date on which the land was transferred to them. If the period of 5 years lapses, then the Collector may grant an extension of another five years after payment of non-utilization charges, which will be determined at the rate of 2% of the market value of such land per annum.

2. Sale of land by the purchaser: If the purchaser or subsequent purchaser does not utilize the agricultural land for non-agricultural purposes as per the draft/final Regional plan or Town Planning Scheme and wants to sell the land prior to the expiry of the ten years, then the Collector may allow him to sell the land, provided the purchaser or subsequent purchaser pays the non-utilization charges to the Collector and the land sold should be used for non-agricultural purposes as per the draft/final Regional plan or Town Planning Scheme only. Putting the land to non-agricultural use by the person purchasing the land will be the remaining period left unutilized by the person selling the land out of the specified period of 10 years. Additionally, the person selling the land will also have to deposit 25% of the market value of the land with the Collector.

3. The Collector will resume the land: If the purchaser or any subsequent purchaser does not use the land for non-agricultural purposes as per the draft/final Regional plan or Town Planning Scheme within five years or within ten years upon payment of non-utilization charges, then the Collector shall resume the land after issuing one month’s notice to the purchaser or subsequent purchaser as the case may be. The land so acquired by the Collector will vest with the Government free from all encumbrances.

4. Option to the original owner to buy the land: The land so resumed by the Collector will be offered to the original owner on the same terms and conditions as he sold it. The original owner will have the right of first refusal. This right will have to be exercised by the original owner within 90 days from the date of receipt of the offer. If the original owner accepts the land, then they will have to deposit the amount within a further period of 90 days. If they fail to exercise the right within 90 days or fail to deposit the amount within 90 days, the Collector will auction it.

5. Auction of land: The land so auctioned shall be used for purposes mentioned in the draft/final Development plan or Regional plan, or Town Planning scheme. The auction proceeds will be remitted to the purchaser or subsequent purchaser as the case may be within 90 days from receiving such auction proceeds. The amount paid to the purchaser or subsequent purchaser will be equal to the price at which he purchased the land.