NoC not required from State Government of Maharashtra for obtaining agricultural land for industrial use

As a part of Make in Maharashtra plan the State Government of Maharashtra has in its cabinet meeting held on 17th November 2015 decided to do away with approvals required for transfer of private agricultural land or agricultural land falling under the authority of various state departments for industrial use in urban areas and in special planning zones. In view of which No Objection Certificate (“NoC”) of State Government will no longer be required for purchase of agricultural land for industrial use. The other key highlights of the decision are as under:

  1. The purchaser of such agricultural land can start actual production within a period of 5 years from the date of purchase of land and if the entrepreneur fails to utilize such land, he will be given an extension of another 5 years, charging him with 2% cess every year calculated on the total cost of the land. However further if the purchaser fails to use the acquired land, then the government will take back the land from such purchaser and return it to the original owner or the farmer.
  2. If the land-holder decides to sell the undeveloped land within the 10 year period, the Government will levy a charge of 25 % of the ready reckoner rate as a transfer fee of the land and such seller shall also be liable to pay the 50% of the market value of the conversion use of the land.
  3. The Class-2 user of the land shall pay a 2% charge of the purchase price of land to the district collector as duty within 30 days after purchasing the land if such user fails to comply with it he shall be penalized with 75% of the appropriate value of the purchase price of the land.

This decision will only apply to fresh transactions, and shall not be made applicable with retrospective effect. In view of which the decision will not be applicable to the entrepreneurs, who have acquired land, but have so far failed to start an industry.

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