New Maharashtra land bill seeks regularisation of decades of irregular urban plot transactions
Nagpur, Dec 8 (IANS) The state government on Monday tabled a bill to amend the Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act to address the complexities of land ownership in developing urban and semi-urban areas, where land originally categorised as agricultural has been converted and transacted for non-agricultural use in small parcels, which were technically in violation of the original 1947 Act.
In order to provide a much needed relief to millions of property holders, the government has for urban and non-agricultural lands announced a one-time scheme for the free regularisation of illegal land transactions spanning nearly six decades. The move aims to clear ambiguity from land records, unlock development potential, and grant legal ownership status to approximately 60 lakh small plot holders across the state.
The government’s new framework introduces crucial changes to the decades-old legislation, which was originally intended to prevent the sub-division of agricultural land into uneconomical fragments. The most significant change is the effective repeal or exclusion of the Act’s restrictions for land in specific areas to regularize past transactions.
The restrictions on fragmentation (Sections 7, 8, and 8AA of the Principal Act) largely ceased to apply to lands situated within the limits of a Municipal Corporation or a Municipal Council (Nagar Parishad/Nagar Panchayat), the jurisdiction of a Special Planning Authority or a New Town Development Authority appointed under the Maharashtra Regional and Town Planning Act, 1966, and any land allocated to residential, commercial, industrial, or any other non-agricultural use in the draft or final Regional Plan.
Further, the government has proposed amendments to allow for the regularisation of past transfers or partitions of land contrary to the Act’s provisions, especially for land intended for bona fide non-agricultural use.
For such irregular transactions made on or after November 15, 1965, and before October 15, 2024, if the land is in the exempted urban/non-agricultural areas, the transfer or partition shall be deemed to have been regularized without charging any premium. This change aims to provide relief to millions of plot holders whose land transactions were previously irregular.
The government has also opened a path for citizens who purchased land through notarised agreements or stamp papers but failed to formally register the sale deed. Talathis and Circle Officers have been instructed to assist such buyers in completing the registration process (after payment of applicable stamp duty and fees) and subsequently entering their names as the lawful occupants (kabjedar) on the 7/12 extract.
The state government had previously introduced a process to regularize past fragmented land transactions (under Section 9(3)) by paying a premium. This premium was significantly reduced by a recent amendment.
A premium of up to 25 per cent of the market value of the land, as per the Annual Statement of Rates (ASR), was notified for regularisation. The premium payable for regularising transfer or partition of a land (contrary to the Act’s provisions and made during the specific period) was reduced to 5 per cent of the market value of such land as per the Annual Statement of Rates.
According to the government, rapid urbanisation over the past few decades has led to the conversion of agricultural land near major cities into residential plots. Millions of transactions involving small plots were conducted based on planning permission but were technically illegal under the 1947 Act, leaving property titles in a state of flux.
Revenue Minister Chandrashekhar Bawankule recently stated that the initiative is one of the most significant steps in recent history to simplify land ownership and bring transparency to property records in Maharashtra, providing long-awaited clarity and peace of mind to families in urban and peri-urban areas.
–IANS
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