Insights
No separate non-agricultural permission required in Maharashtra for land with construction permission
June 1, 2023For the ease of doing business, the Government of Maharashtra (GoM) has introduced the Building Plan Management System (BPMS) by its decision dated May 23, 2023 (Decision). BPMS is an online system that issues non-agricultural use certificates and construction/development permissions.
According to The Maharashtra Land Revenue Code, 1966 (Code), prior permission from the Collector is required to (i) use agricultural land for non-agricultural purposes or (ii) make specific changes in the use of non-agricultural land, except in cases such as bona fide industrial use or integrated township projects, provided that the agricultural land is situated (i) in the industrial zone of a draft or final regional plan or draft, interim, or final development plan or draft or final town planning scheme prepared under The Maharashtra Regional and Town Planning Act, 1966 (MRTP Act) or any other applicable law, or (ii) within an area where no such plan or scheme exists for bona fide industrial use, or (iii) within the area undertaken by a private development as an integrated township project.
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These permissions are subject to the fulfilment of the following conditions: (i) the person intending to use the land for such purposes has a clear title and proper access to the land; and (ii) the land or any portion thereof is not reserved for any public purpose, and the bona fide industrial use or integrated township project does not conflict with the overall scheme of the development plan.
The Code requires landowners to obtain a certificate of non-agricultural use, in addition to separately obtaining construction/development permission as per the provisions of the MRTP Act. Following the Decision, the Competent Authority, while granting building permission will ensure that non-agricultural use of the land is permissible. Consequently, the requirement for separate permission to convert agricultural land to non-agricultural use is eliminated.
This Decision applies only to Class I lands (lands without any transfer restrictions). For Class I lands, conversion tax will be collected through BPMS, and a system-generated non-agricultural use certificate will be issued along with development permission.
For Class II lands (lands with transfer restrictions), prior permission from the Collector for conversion of agricultural land to non-agricultural use will however be required. For Class II lands, nazrana, conversion fee and other dues will be calculated and must be paid first. After certification of payment by the Revenue Officer, development permission will be issued through BPMS, along with a system-generated non-agricultural use certificate.
The system-generated non-agricultural use certificate will be electronically sent to the Village Registry for record-keeping, and further payment of non-agricultural charges, which will be binding on the holder of the building permission.
This Decision benefits landowners, developers, and end-users as it reduces time and costs, and represents a step forward by the GoM in eliminating complexities in the approval process.
This article was originally published in Financial Express on 1 June 2023 Written by: Ashoo Gupta, Partner. Click here for original article
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Disclaimer
This is intended for general information purposes only. The views and opinions expressed in this article are those of the author/authors and does not necessarily reflect the views of the firm.
