Introduction

The Government of Maharashtra, as a part of its initiative towards ease of doing business, has by its Government Resolution dated 23 May 2023 ("GR") simplified the process relating to conversion of user of land from agricultural use to non-agricultural use or from one non-agricultural use to another non-agricultural use and at the same time, obtaining development permissions and approvals.

Position Prior to the GR

Since 1966, any person who intended to (i) convert any agricultural land for utilizing it for non-agricultural purpose, or (ii) convert non-agricultural land from one purpose to another, had to seek prior permission of the Collector under Section 42 of the Maharashtra Land Revenue Code, 1966 ("MLRC").

Subsequently, and since 1994, the aforesaid provision was amended from time to time and Sections 42-A, 42-B, 42-C, 42-D and 44-A were introduced, which provided that prior permission of the Collector will not be required to put any agricultural land to non-agricultural use, if such agricultural land is (i) reserved for a particular non-agricultural use as per the draft/final regional/development plan, (ii) is situated within 200 meters of any town/village/city, and (iii) acquired for bonafide industrial use or Integrated Township Project. These amended provisions, although, do away with the requirement of obtaining prior permission from the Collector as stipulated in Section 42 of MLRC, however, require the owner/developer to obtain a sanad from the Collector, by following due process as set out in these amended provisions to establish that the land has been put to the applicable non-agricultural use. In addition to the aforesaid, owner/developer is also required to obtain development/building permission/approvals under the provisions of Maharashtra Regional and Town planning Act, 1966 ("MRTP") from the competent authority. This would mean liaisoning with two separate authorities for (i) ensuring conversion of land to applicable non-agricultural use, and (ii) obtaining building/development approvals/permission, which results in considerable delays for landowners / developers in the development process.

Position after the GR

The GR provides that the competent authority under MRTP Act while granting development/construction permissions, must also take into account whether non-agricultural use, for which such development permission is sought, is permissible as per the provisions of Sections 42-A, 42-B, 42-C, 42-D and 44-A of MLRC. Once verified, separate process for obtaining a sanad, as mentioned above, will not be required and the sanad will be granted to the applicant along with the development/construction permissions through the Building Plan Management System ("BPMS"). Needless to clarify, necessary compliances with respect to payment of nazrana/premium/other governmental charges, as the case may be, depending on the Occupancy Class of the land i.e 'Class-I' or 'Class-II' will have to be made.

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