A Circular issued by Government of Maharashtra has put an end to the confusion whether one needs to inform Collector before they get into a leave and license agreement regarding flats built on government land.

By Varun Singh

A government of Maharashtra circular has put an end to the confusion there’s no needs for Collector’s permission before getting in to a leave and license agreement in buildings constructed on government land. There are hundreds of such properties constructed on government land in the city of Mumbai and this move will benefit thousands and lakh of residents.

The circular issued by the Revenue and Forest department of the states states, “At the time of giving of flats in Co-operative Housing Societies on the Government lands on leave and license basis, there is no need to get prior permission from or inform the Collector. Also for this purpose, there is no need for charging or recovering a license fee.”

Th circular has been issued to regional revenue officers and authorities on the subject of giving for use flats in Co-operative Housing Societies on Government lands on leave and license basis.

The circular talks in detail in regards to charging license fee and prior permission from the Collector as per provisions of Maharashtra Land Revenue Code 1966 and Maharashtra Land Revenue (Disposal of Government Lands) Rules 1971.

A reading of Section 37A of Maharashtra Land Revenue Code 1966 shows that  there is provision of prior permission from the Government for sale, transfer, redevelopment, change of user, transfer of development rights, use of additional floor space index  etc.  However, leave and license has not been included in it. 

Thus when flats in Co-operative Housing Societies are given for use under leave and license agreements, ownership of flat or lease right do not get transferred.  “By such  leave and license agreement only permissive right of use of the flat is given to the concerned person. Hence, no permission is required from Collector,” reads the circular.

Prakkash Rohira, Advocate Bombay High Court, says, “Such explicit clarification of exclusion of temporary leave and license from section 37A of Maharashtra Land Revenue Code 1966 is a welcome move and eases property usage for mutual benefit for both Licensors and Licensees, as collectors NoC will not be needed.”

Rohira further adds, “The much prevalent confusion is now removed. However do note that it is necessary and always recommended to register a leave and License agreement under section 17(1) of the Registration Act, 1908.”

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