G.R. Dt. 1st March, 2019 – Department of Revenue and Forest – Sub – Extension of Time for carrying out construction on Government Lands in Maharashtra
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Policy Directions for Extension of Time for carrying out construction of buildings on Government Lands granted to various persons, bodies and companies for various purposes by Occupancy Rights or Lease
Government of Maharashtra
Department of Revenue and Forest
Government Resolution No:- Jamin-2016/Pra.Kra.254/J-1,
Madam Cama Marg, Hutatma Raj Guru Chowk,
Mantralaya, Mumbai-400 032
Dated:- 1st March, 2019
Vide:-
[1] Sections 13, 29, 38 and 40 of the Maharashtra Land Revenue Code, 1966.
[2] The Maharashtra Land Revenue (Disposal of Government Lands) Rules, 1971.
[3] Government Resolution in the Department of Revenue, bearing No:- LND-4857/169146- AI, Dated 21.11.1957.
[4] Government Resolution No:-Jamin-2016/Pra.Kra.254/J-1, Dated 11th January, 2017.
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Preface:-
During Pre-independence era, as well as before the enactment of the Maharashtra Land Revenue Code, 1966, Government lands in the State were granted for various purposes to various persons, bodies and companies, either by Occupancy Rights or Lease. Moreover, under the provisions of the Maharashtra Land Revenue Code, 1966 and the Maharashtra Land Revenue (Disposal of Government Lands) Rules, 1971, such government lands have been granted for various purposes to various persons, bodies and companies, either by Occupancy Rights or Lease, from time to time. A time frame is prescribed for the construction of buildings on the government lands granted to the concerned parties, so that they can be put to speedy use for achieving socio-economic development of the State.
Rule 41 of the Maharashtra Land Revenue (Disposal of Government Lands) Rules, 1971, contains the following provision vis-à-vis construction to be made on the Government lands, so granted:-
“The grantee shall within three years (or such further period as the Collector may allow) from the date of grant, erect a building of a substantial and permanent description on the land; failing which the land shall be liable to resumption on payment of compensation not exceeding occupancy price paid by grantee.”
Against this backdrop, pursuant to the Cabinet Sanction, Policy Directions came to be issued under the above referred Government Resolution Dt. 11.01.2017, vis-à-vis extension of time for carrying out construction of buildings on the Government lands which were granted for various purposes to various persons, bodies and companies, either by Occupancy Rights or Lease, under the provisions of the Maharashtra Land Revenue Code, 1966 and the Maharashtra Land Revenue Code (Disposal of Government Lands) Rules, 1971, or prior thereto.
The Government has received representations from several people’s Representatives, as well as various persons/bodies to the effect that the Rates of Premium to be charged for the extension of time limit for the purpose of construction during the course of implementation of this Government Resolution at Field Level are not financially affordable to ordinary persons/bodies and as such these Premium Rates charged for extension of time for the purpose of construction should be reduced. In view of all these factors, the Government contemplated the matter of revising the Rates of Premium which are to be charged while extending time frame for the construction of buildings on Government lands granted for various purposes to various persons, bodies and companies, either by Occupancy Rights or Lease. In furtherance thereof, the Government, pursuant to the decision taken by the Cabinet in its Meeting Dated 20.02.2019, has resolved as hereunder:-
Government Resolution:-
(1) Government Resolution at Reference No.4, bearing No. Jamin-2016/Pra.Kra.254/J-1, Dated 11th January, 2017, is hereby superseded.
(2) Directions are hereby issued under this Government Resolution to take following steps for the purpose of extension of time for carrying out construction of buildings on Government lands granted for various purposes, either by Occupancy Rights or Lease, to various persons, bodies or companies under the provisions of the Maharashtra Land Revenue Code, 1966 and the Maharashtra Land Revenue (Disposal of Government Lands) Rules, 1971 or prior thereto.
(i) In furtherance of the provisions of Rule 41 of the Maharashtra Land Revenue (Disposal of Government Lands) Rules, 1971, a condition should be incorporated in the Order of Grant of land concerning construction of buildings on Government lands granted by Occupancy Rights/Lease, that building construction should be completed within 3 years from the time of handing over actual possession of land.
(ii) If the concerned person/body does not complete building construction within the time limit stipulated in the Order of Grant of Government lands, it would be mandatory to seek extension of time from the District Collector for the purpose of construction of buildings. While permitting such extension of time limit, premium should be charged at the level of the concerned District Collector at the Rates specified below:-
| Sr. No. | Duration of Extended Time Limit for the purpose of construction | Rates of Premium to be charged for the extension of Time Limit |
| [1] | First Extension of Time after the Original Sanction Period – 2 Years | 0.5% each year, of the price of the concerned land as per the prevailing Annual Statement of Rates. |
| [2] | Second Extension of Time – 2 Years | 1% each year, of the price of the concerned land as per the prevailing Annual Statement of Rates. |
| [3] | Third Extension of Time – 2 Years | 1.5% each year, of the price of the concerned land as per the prevailing Annual Statement of Rates. |
| [4] | Fourth Extension of Time – 2 Years | 2% each year, of the price of the concerned land as per the prevailing Annual Statement of Rates. |
| [5] | Fifth Extension of Time – 2 Years | 2.5% each year, of the price of the concerned land as per the prevailing Annual Statement of Rates. |
District Collector of the concerned District shall be the Competent Authority for sanctioning extension of time for the purpose of construction. However, if the reasons specified by the concerned applicant persons/bodies in their applications made to the District Collector for extension of time satisfy the District Collector that such reasons were beyond their capacity then Premium should be charged at half of the aforesaid Rates specified for the purpose of extension of time for construction, by recording reasons, thereof, in writing.
(iii) Those cases in which even after the lapse of total sanctioned period (i.e. original sanctioned period plus extended sanctioned period) construction of buildings on the concerned land is left incomplete despite commencement thereof, with the permission of the Planning Authority/Competent Authority, or the Building Completion Certificate thereof, is not received from the concerned Planning Authority/Competent Authority, then in those instances, till receipt of Building Completion Certificate or till the date of First Levy of Property Tax on such property by the concerned Local Self-Government Body, the concerned persons/bodies shall be permitted an extension of time on the condition that they shall pay to the District Collector, each year, a Premium equal to 1% of the price of the concerned land as per the Annual Statement of Rates for the respective year.
(iv) In cases of persons or bodies which shall not file their applications for extension of period for carrying out construction within the original period stipulated in the Land Grant Order or the extended sanctioned period/before expiration of such period, Delay Fees equal to 0.1% price of the concerned land as per the prevailing Annual Statement of Rates, too, should be charged on account of delay in filing extension applications.
(v) Despite grant of extension as described above, if construction is not commenced after obtaining Development Permission from the concerned Planning Authority/Competent Authority, then under Rule 41 of the Maharashtra Land Revenue (Disposal of Government Lands) Rules, 1971, the said Government land in its existing condition should be resumed by the Government and a compensation amount not exceeding the Occupation Price paid by the Grantee should be paid to him.
(vi) Those cases in which as on the date of issue of this Government Resolution, construction of buildings is not completed despite commencement thereof, with the permission of the concerned Planning Authority/Competent Authority, and the original and extended sanctioned period for carrying out construction is already completed, then concerned person or body may apply for a further extension of 2 years to the District Collector within 6 months of enforcement of this Policy. Upon receipt of such application, in the first instance, a notional extension of time should be granted from the date of expiration of the original stipulated period and the extended sanctioned period until the date of this Government Resolution on the payment of an amount equal to 10 times the Non-Agricultural Assessment of the concerned land for the relevant year for which extension is to be granted and then further extension of 2 years should be granted by charging and recovering a Premium at the rate of 0.5% of the price of the concerned land as per the prevailing Annual Statement of Rates per year and 0.1% of such price towards Delay Fees, in lump sum.
Despite grant of such extension, if the construction is not completed, then until receipt of Building Completion Certificate from the concerned Planning Authority/Competent Authority or until First Levy of Property Tax on such Property by the concerned Local Self-Government Body, the concerned person/body shall be permitted an extension of time on the condition of making payment to the District Collector of a Premium equal to 1% of the price of concerned land as per the Annual Statement of Rates of the respective year, each year.
(vii) Those cases in which as on the date of issue of this Government Resolution, despite receipt of sanction from the Planning Authority/Competent Authority, the construction is not at all commenced and the original and the extended sanctioned period for the completion of construction too is already completed, then the concerned person or body may apply for the last extension of additional 2 years to the District Collector within 6 months of enforcement of this Policy. Upon receipt of such application, in the first instance, a notional extension of time should be granted from the date of expiration of time original stipulated period and the extended sanctioned period until the date of this Government Resolution on the payment of an amount equal to 20 times the Non-Agricultural Assessment of the concerned land for the relevant year for which extension is to be granted. Thereafter further extension of two years should be granted by charging and recovering a Premium at the rate of 0.5% of price of the concerned land as per the prevailing Annual Statement of Rates per year and 0.1% of such price towards Delay Fees, in lump-sum.
Despite such extension of time, if construction is not commenced, then such Government land, in its existing condition should be resumed by the Government under the aforesaid Rule 41 and a compensation amount not exceeding the Occupancy Price paid by the Grantee should be paid to him.
However, where upon such extension, construction is duly commenced with the sanction of the Competent Authority, but not completed, then until receipt of Building Completion Certificate from the concerned Competent Authority or until the first levy of Property Tax on such property by the concerned Local Self-Government Body, the concerned person or body shall be permitted an extension of time on the condition of making payment to the District Collector of a Premium equal to 1% of the Price of the concerned land as per the Annual Statement of Rates for the respective year, each year.
(viii) Those cases, in which orders have been passed for the resumption of the concerned Government lands to the Government for non-commencement of building construction within the prescribed period under the aforesaid clauses (v) and (vii), the concerned person or body may apply to the Government praying for re-grant/restoration of such land within a period of 3 months of the date of receipt of the Order directing resumption of land to the Government. Upon receipt of such application, the Government shall take a decision regarding re-grant/restoration of the concerned land to the concerned person or body on merits, in conformity with the prevailing Government policy.
(ix) Government lands in the State are let out either on Occupancy Rights or by Lease under the Maharashtra Land Revenue (Disposal of Government Lands) Rules, 1971. The Government lands granted under these Rules are governed by the provisions, thereof. Hence, those Government lands which are granted by Occupancy Rights/Lease to persons/bodies under these Rules, but the Orders pertaining to their grant, Agreements or Sands (Charters) do not Stipulate the period for the completion of building construction, too, are governed by the provisions of Rule 41 of the aforesaid Rules and as such in those cases, too, it would be mandatory to obtain extension of time for construction of buildings, as per the aforesaid directions.
02. This Government Resolution has been issued pursuant to the opinion of the Department of Finance, vide Its Informal Reference No. 22/Vyaya-9/2019, Dt. 14.01.2019 and with the sanction of Cabinet.
This Government Resolution has been made available on the website of the Government of Maharashtra viz. www.maharashtra.gov.in and its Code Number is 201903011550493719. This Resolution is attested and issued under Digital Signature.
By the order and in the name of the Governor of Maharashtra,
Manu Kumar Srivastava – Digital Signature
[Manu Kumar Srivastava]
Additional Chief Secretary (Revenue)
Copy:-
[1] The Secretary to the Hon’ble Governor, Raj Bhawan, Malbar Hill, Mumbai,
[2] The Principal Secretary to the Hon’ble Chief Minister, Chief Minister’s Secretariat, Mantralaya, Mumbai-32,
[3] The Private Secretary to the Hon’ble Minister (Revenue), Mantralaya, Mumbai,
[4] The Private Secretary to the Hon’ble Minister of State (Revenue), Mantralaya, Mumbai-32,
[5] The Hon’ble Chief Secretary, Government of Maharashtra, Mantralaya, Mumbai-32,
[6] The Additional Chief Secretary (Finance), Department of Finance, Mantralaya, Mummbai-32,
[7] The Accountant General (Audit)(Accounts & Entitlement), Maharashtra State, Mumbai/Nagpur,
[8] The S.D.O/Personal Assistant to the Additional Chief Secretary (Revenue), Mantralaya, Mumbai,
[9] The Principal Secretary, Legislature Secretariat, Vidhan Bhawan, Mumbai,
[10] All Divisional Commissioners,
[11] The Settlement Commissioner and the Director of Land Records, Maharashtra State, Pune,
[12] All District Collectors/Additional District Collectors,
[13] The Directorate of Information and Public Relations, Mantralaya, Mumbai-32,
[14] The Joint Secretary (J-1/L-1), Department of Revenue and Forests, Mantralaya, Mumbai,
[15] All Administrative Departments in Mantralaya,
[16] All Joint Secretaries/Deputy Secretaries/Section Officers in “J” Group, Department of Revenue and Forest, Mantralaya, Mumbai,
[17] Select File (Desk J-1).
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[Text Translated by Adv. Prakash Manohar Chalke
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