In a major relief to beneficiaries of land distribution schemes and their families, the Maharashtra Government has issued a clarification that intra-family transfers of surplus land allotted under the Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 1961 will no longer require prior permission from the District Collector or payment of any premium (nazrana).
The Government Resolution (GR), issued by the Revenue and Forest Department addresses longstanding grievances faced by allottees and their heirs. Under the 1961 Act, surplus agricultural land above the ceiling limit was acquired from larger holders and redistributed to landless individuals, ex-servicemen, and members of weaker sections (as per Sections 21 and 27).
Earlier rules, including amendments in 1975 and 2001, imposed strict restrictions on the transfer or sale of such allotted lands. Any proposed transfer typically required the Collector’s sanction and payment of a premium — often calculated at 40 times the annual land revenue assessment of the land — to prevent misuse or speculative dealings.
However, citizens frequently encountered hurdles when such lands were passed within the family through inheritance (upon death), wills, relinquishment deeds (where a family member voluntarily gives up their share), or mutual partition among family members (as defined under Section 4 of the Act, typically covering a Hindu Undivided Family or equivalent unit).
The GR notes that these intra-family arrangements were causing unnecessary administrative difficulties. It relies on a key judgment from the Bombay High Court, Nagpur Bench (Writ Petition No. 2815/2002, dated 30 June 2003), which held that partition of joint family property among co-owners or consensual relinquishment does not amount to a “transfer” under the relevant laws. Therefore, such actions fall outside the scope of restrictions.
Key provisions of the GR include:
- No permission or premium required for family-internal transfers: Mutual consent partitions, relinquishment deeds, wills to family members, or inheritance/succession among family members are exempt. These are not deemed “transfers,” so no nazrana needs to be paid, and no Collector approval is mandatory.
- Premium still applicable for external transfers: If the land is willed or transferred to any person outside the defined family unit, it will be treated as a transfer. In such cases, the provisions of the 19 October 2001 notification apply, requiring payment of the premium (typically 40 times the assessment) along with necessary permissions.
- The GR directs all revenue authorities — including Divisional Commissioners, District Collectors, and field officers — to follow these guidelines uniformly to avoid harassment of common citizens.
This decision is expected to simplify mutation entries in revenue records (like 7/12 extracts) for family successions and partitions, reduce litigation, and ease the burden on revenue offices. The full GR is digitally signed and available on the Maharashtra Government portal www.maharashtra.gov.in
Revenue officials have welcomed the move as a step toward administrative ease, while beneficiary families can now handle internal land arrangements without fear of demands for premiums or permissions.