ASSIGNMENT ON

1. WHAT IS THE PROCEDURE OF ACQUISITION OF LAND FOR PUBLIC

PURPOSE UNDER THE LAND ACQUISITION ACT?
2. DISCUSS THE PROCEDURE FOR CONVERSION OF LAND FROM
AGRICULTURAL TO NON-AGRICULTURAL LAND
3. IS IT COMPULSORY FOR AGREEMENTS ENTERED INTO UNDER THE
MAHARASHTRA OWNERSHIP OF FLATS ACT, 1963 TO BE REGISTERED?
WHAT ARE THE CONSEQUENCES OF NON REGISTRATION:

ASSIGNMENT SUMITTED IN FULFILMENT OF THE REQUIREMENTS

OF ASSIGNMENT IN LAND LAWS

FOR THE DEGREE OF

S.Y.L.L.B.

(THROUGH UNIVERSTY OF MUMBAI)

SUBMITTED BY

MS. KRUTI SHAH

(ROLL NO. 2122248)

SUBJECT TEACHER:
PROF. DIPAK KUMAR CHATTOPADHYAY

LALA LAJPATRAI COLLEGE OF LAW

MUMBAI

APRIL 2022

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 1
 INDEX
SR. NO PARTICULARS PAGE NO.
WHAT IS THE PROCEDURE OF ACQUISITION OF LAND
A. FOR PUBLIC PURPOSE UNDER LAND ACQUISITION ACT?

1. Introduction 3

2. History 4

3. Public Purpose Meaning 6

4. Procedure Of Acquisition Of Land For Public Purpose 8

5. Case Study 11
DISCUSS THE PROCEDURE FOR CONVERSION OF LAND
B. FROM AGRICULTURAL TO NON-AGRICULTURAL LAND

1. Introduction 12

2. Procedure For Conversion Of Agricultural Land To Non- 13

Agricultural Land

3. Case Study 19
IS IT COMPULSORY FOR AGREEMENTS ENTERED INTO
UNDER THE MAHARASHTRA OWNERSHIP OF FLATS
ACT 1963 TO BE REGISTERED? WHAT ARE THE
C. CONSEQUENCES OF NON REGISTRATION

1. Introduction 20

2. Object And Legislative History 21

3. Compulsory Registration Of Agreement 22

4. Effect Of Non-Registration Of Agreement 24

 Conclusion 26

 Bibliography 28

ASSIGNMENT OF LAND LAWS | KRUTI SHAH|S.Y.L.L.B.| ROLL NO. 2122248| PAGE 2

A. WHAT IS THE PROCEDURE OF ACQUISITION OF LAND
FOR PUBLIC PURPOSE UNDER LAND ACQUISITION ACT?
INTRODUCTION
Government has a duty towards public work. For this most of the time they have to deal
in construction. And for this they need land. And it is possible that at times the land they
need is private property. In such a case the government’s power to take that land
overpowers the individuals’ right over that property. The government can acquire
private land for the purpose of public work. This is called land acquisition.

Land Acquisition is simply the process by which the Government can acquire private
land. This may include any other private property. It is usually done for the purpose of
public work building infrastructure, urbanisation, development and industrialisation.
Government can also acquire land for private firms for setting up factories or other
industrial setups. Purchase of land is a contract between willing buyer and willing
seller, while in case of land. Acquisition the land owner has no choice. This is the reason
right to property is not a fundamental right.

Land acquisition by a state is rooted in the concept of Eminent Domain. As per this
doctrine, the state can do anything in public interest. It is based on two Latin political
concepts

 Welfare of public is paramount

 Public necessity is greater than private necessity

The idea of Land Acquisition in India is based on Eminent Domain. The state has the
right to acquire any private property for the public use. Right to property was a
fundamental right till 1979 when the 44th amendment reduced it to a constitutional or
legal right. As per the amendment, “no person shall be deprived of his/her property
saves by the authority of law”. Hence remedy in case of right to property in India is
available through High court and not the Supreme Court. No law that deprives the right
to property can be challenged. However as per the constitution, no land can be acquired
by the state without compensation. Land Acquisition is a concurrent subject.
Land Acquisition in India occurs in three ways

 Acquisition through Land Acquisition Act 2013

 Through various other Acts
 Through negotiation

Also called Land Acquisition Act 2013, Right to Fair Compensation and Transparency in
Land Acquisition, Rehabilitation and Resettlement Act, 2013 is the main law that
regulates land acquisition and establishes rules and regulations for granting
ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 3
 compensation, rehabilitation and resettlement to the affected people in India. The act
replaced the Land Acquisition Act, 1894. It is the principle law concerning land
acquisition and compensation to the land owners. The law followed the massive
industrialization and liberalization in the country. The law was brought in due to
absence of cohesive law for compensation and fair rehabilitation.

HISTORY
Acquisition of land for developmental purposes has historically been a contentious
issue, not only for a country like India, but in many parts of the world. Allocating a
scarce resource like land in competing and often conflicting uses is not without
complications. What aggravates this problem is the involvement of government as an
active ‘taker’ of land as it adopts the responsibility of transferring it for alternative uses.
Over the years, this has given rise to long drawn conflicts, both in the form of legal
battles as well as mass movements, fought by the dispossessed groups against the land
taking authorities. The common thread of resistance running through many of such
conflicts, like Singur and Nandigram in West Bengal, anti-Posco and Kalinganagar
struggles in Orissa or anti-SEZ movements in Maharashtra, is that agricultural or
forested lands and tribal settlements are being acquired by the government for setting
up of private enterprises in the name of purported ‘public purpose’.

Clearly, this calls for a review of how ‘public purpose’ has been defined by the law of the
land and also to see the way in which the judiciary and the legislature have tried to
address people’s concerns about the same. In the Indian context, the archaic Land
Acquisition Act of 1894, based on the principle of ‘eminent domain’ provided an
extremely broad definition of the clause and has left enough space over the years for the
discretion of the government on this matter. Even the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act of 2013, which
has taken the place of the colonial act of 1894, has failed to address the shortcomings of
its legal predecessor, in so far as the ‘public purpose’ clause is concerned.

The lax scope of what constitutes a ‘public purpose’ in successive legal doctrines has
opened up several loopholes in interpretation of the clause by different stakeholders
and has been at the root of many legal battles. A closer look into court judgements on
land acquisition corroborates the same fact. Aggrieved landowners have repeatedly
challenged the government’s action on the ground that the proposed purpose for
acquiring their land is not justifiable to them and are clearly meant for setting up of
private enterprises. The judiciary’s token response in such instances has been to simply
not engage with the discussion of what represents a ‘public purpose’ by merely
upholding the decision of the government. The Supreme Court’s observation in Bajirao
Kote’s case is particularly noteworthy here, “it is primarily for the state government to

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 4
 decide whether there exists public purpose or not, and it is not for the Supreme Court or
the high courts to evaluate the evidence and come to its own conclusion whether or not
there is public purpose.” The same reasoning resonated in a number of other court
judgements as well. Thus, it had almost become a trend for the courts to adopt a “hands-
off” attitude when it came to curbing the unrestricted power at the hands of the
government.

Legally, all that was required to validate government’s decision on this matter was
bearing a part of the cost of acquisition, however small it might be, from public funds.
Given this logic in place, literally any act of acquisition by the government could then be
justified in the name of public benefit, by paying as less as a penny, with literally no
regard to the genuine public utility of it. The judiciary’s role in safeguarding the
interests of the state reached ridiculous proportions in Indrajit C. Parekh of
Ahmedabad vs. State of Gujarat. In this case, the state government had borne a token
amount of just one rupee from the exchequer towards acquisition and that alone had
been enough to grant it a public use status.

In the midst of such repeated conflicts, the attitude of unfailing judicial deference to
government actions started showing some signs of change in a few judgements of recent
past. In the 2011 Supreme Court case of Dev Sharan vs. State of Uttar Pradesh, the
Apex Court itself had critiqued the state’s efforts at diluting the said clause by pointing
out that, “Any attempt by the State to acquire land by promoting a public purpose to
benefit a particular group of people or to serve any particular interest at the cost of the
interest of a large section of people especially of the common people defeats the very
concept of public purpose.” A similar active and critical stance, against government
action, was adopted by several benches in subsequent cases as well.

Unfortunately, the shift in the judiciary’s approach to this issue has seemed to play very
little role in amending the definition of the concerned clause in the 2013 Act. The latter
has brought about a number of much-discussed amendments like the requirement of
consent from the landowners while acquiring land, ensuring rehabilitation and
resettlement and enhancing the compensation amount manifold. However, when it
comes to modifying the ‘public purpose’ clause, the legislative intent has been found to
be extremely weak. As India moves towards rapid urbanisation, the absence of a taut
definition of what can be termed as a ‘public purpose’ would continue to trigger
aggressive litigations while still leaving ample scope of manipulation by the land
acquiring authorities to suit their needs. (Bajirao T. Kote (Dead) By Lrs. and Another
vs. State of Maharashtra and Others, 1994 INDLAW SC 685., Indrajit C. Parekh of
Ahmedabad and Another vs. State of Gujarat and Others, 1975 INDLAW SC 579.,
Dev Sharan and others vs. State of Uttar Pradesh and others, 2011 INDLAW SC
149.)

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 5
 PUBLIC PURPOSE MEANING
Article 31(2) categorically states that a land can be acquired by the state only for Public
Purpose. Broadly speaking, public purpose would include a purpose, in which the
general interest of the community, as opposed to a particular interest of the individual,
in generally and vitally concerned. In a generic sense the expression public purpose
would include a purpose in which where even a fraction of the community would be
involved. It has been identified as a work from which public in general would derive
benefit or be benefited. Anything which is useful to the public, in the sense that it
confers some public benefit, or conduces to some public advantage, is a public purpose.
It is the requirement of public purpose that is determining factor on the question
whether or not a particular land should be acquired, and the considerations of
hardships to the individuals cannot outweigh the question of public demand.

 SECTION 3(f) OF THE LAND ACQUISITION ACT DEFINES PUBLIC PURPOSE AS THE
EXPRESSION PUBLIC PURPOSE INCLUDES-

 the provision of village-sites, or the extension, planned development or improvement of

existing village-sites;
 the provision of land for town or rural planning;
 the provision of land for planned development of land from public funds in pursuance of
any scheme or policy of Government and subsequent disposal thereof in whole or in
part by lease, assignment or outright sale with the object of securing further
development as planned;
 the provision of land for a corporation owned or controlled by the State;
 the provision of land for residential purposes to the poor or landless or to persons
residing in areas affected by natural calamities, or to persons displaced or affected by
reason of the implementation of any scheme undertaken by Government, any local
authority or a corporation owned or controlled by the State;
 the provision of land for carrying out any educational, housing, health or slum clearance
scheme sponsored by Government or by any authority established by Government for
carrying out any such scheme, or with the prior approval of the appropriate
Government, by a local authority, or a society registered under the Societies
Registration Act, 1860 (21 of 1860), or under any corresponding law for the time being
in force in a state, or a co-operative society within the meaning of any law relating to co-
operative societies for the time being in force in any State;
 the provision of land for any other scheme of development sponsored by Government
or with the prior approval of the appropriate Government, by a local authority;
 the provision of any premises or building for locating a public office, but does not
include acquisition of land for companies.

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 6
 The expression Public Purpose is not to be strictly construed under Section 3(f) of Land
Acquisition Act, it is an inclusive definition of public purpose and from time to time the
courts have held different purposes to be Public Purpose. It is not possible to give an
exact and all-embracing definition of public purpose.

 PUBLIC PURPOSE INCLUDES THE FOLLOWING AIMS:

 In which general interest of the community, or a section of the community, as opposed

to the particular interests of the individuals, is directly or vitally concerned;
 Which would preserve or promote public health, comfort or safety of the public, or a
section of it, whether or not the individual members of public may make use of the
property acquired;
 Which would promote public interest, or tend to develop the natural resources of the
state;
 Which would enable department of the government to carry on its governmental
functions;
 Which would serve the public, or a section of it, with some necessarily or convenience of
life, which may be required by the public as such, provided that the public may enjoy
such service as of right; or
 Which would enable individuals to carry on a business, in a manner in which it could
not be otherwise be done, if their success will indirectly enhance public welfare, even if
the acquisition is made by a private individual, and the public has no right to any service
from him, or to enjoy the property acquired; or
 If the use to which the property would be put, is one of the widespread general public
benefit not involving any right on the part of the general public itself, to use the
property or;
 Which would result in an advantage to the public; it is not necessary that the property,
or the work upon it, should be available to the public as such; the acquisition may be in
favour of individuals, but, in furtherance of scheme of public utility, which would result
in enhancement of public welfare.

One of the tests of public purpose is if the purpose would satisfy the expenditure of
public funds and in number of judgements courts have said that government is the best
judge of public purpose. The declaration of public purpose by the government is final
except if there is a colourable exercise of power. To allege mala fide or colourable
exercise of power of eminent domain the facts or grounds should be pleaded in support,
which would show at least some nexus between the party for whose benefit the power
is sought to be exercised and the authorities of the state which could support a
reasonable suspicion that there has been an improper exercise, of such power
exceeding the ambit of eminent domain as to constitute a fraud. The power to select the
lands is left to reasonable discretion of the government and the courts cannot interfere
in this regard. The view held by court is that a declaration under Section 6 is a

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 7
 conclusive evidence of public purpose and unless it is shown that there has been a
colourable exercise of power courts cannot go on to look weather it is a public purpose
or not .

With the march of civilization, the notions as to the scope of the general interest of
community changes and widens, with the result that old and narrower notions as to
sanctity of private interest or individual no longer stem the forward flowing tide of time
and give way to broader notions of general interest of the community.

PROCEDURE OF ACQUISITION OF LAND FOR PUBLIC

PURPOSE
For the purposes of Land Acquisition Act of proceedings are carried on by an officer
appointed by the government known as Land Acquisition Collector. The proceeding
under the Land Acquisition Collector is of an administrative nature and not of a judicial
or quasi-judicial character. When a government intends to occupy a land in any locality
is has to issue a notification under Section 4 in the official gazette, newspaper and give a
public notice which entitles anyone on behalf of the government to enter the land for
the purposes of digging, taking level, set out boundaries etc. The notification puts
forward the intention of the government to acquire and entitles government officials to
investigate and ascertain whether the land is suitable for the purpose. The section also
makes it mandatory for the officer or person authorised by the government to give a
notice of seven days signifying his intention to enter any or building or enclosed court in
any locality. This is a mandatory provision of the process of land acquisition.

An officer or authorised person of the government has to tender payment for all
necessary damage, and dispute all disputes to insufficiency of amount lie to the
collector. Under Section 5(a) any person interested in land which is notified under
section 4 (who is entitled to claim an interest in compensation) can raise an objection,
in writing and in person. The collector after making inquiry to such objections has to
forward the report to the government whose decision in this respect would be final.
After considering such report made by the collector under section 5(a) the government
may issue a declaration within one year of the notification under section 4 to acquire
land for public purposes or company, this declaration is a mandatory requirement of the
acquisition.

Section 6 of Land Acquisition Act 1894 "Declaration that land is required for a public
purpose"

Subject to the provisions of Part VII of this Act, when the appropriate Government is
satisfied, after considering the report, if any, made under section 5A, sub-section (2),

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 8
 that any particular land is needed for public purpose, or for a Company, a declaration
shall be made to that effect under the signature of a Secretary to such Government or of
some officer duly authorised to certify its orders, and different declarations may be
made from time to time in respect of different parcels of any land covered by the same
notification under section 4, sub-section (1), irrespective of whether one report or
different reports has or have been made (wherever required) under section 5A, sub-
section (2):

Provided that no declaration in respect of any particular land covered by a notification

under section 4, sub-section (1),-

i. published after the commencement of the Land Acquisition (Amendment and

Validation) Ordinance, 1967 (1 of 1967), but before the commencement of the Land
Acquisition (Amendment) Act, 1984 (68 of 1984), shall be made after the expiry of three
years from the date of the publication of the notification; or

ii. published after the commencement of the Land Acquisition (Amendment) Act, 1984 (68
of 1984), shall be made after the expiry of one year from the date of the publication of
the notification:

Provided further that no such declaration shall be made unless the compensation to be
awarded for such property is to be paid by a Company, or wholly or partly out of public
revenues or some fund controlled or managed by a local authority.

Explanation 1: In computing any of the periods referred to in the first proviso, the
period during which any action or proceeding to be taken in pursuance of the
notification issued under section 4, sub-section (1), is stayed by an order of a Court shall
be excluded.

Explanation 2: Where the compensation to be awarded for such property is to be paid

out of the funds of a corporation owned or controlled by the State, such compensation
shall be deemed to be compensation paid out of public revenues.

Every declaration shall be published in the Official Gazette and in two daily newspapers
circulating in the locality in which the land is situate of which at least one shall be in the
regional language, and the Collector shall cause public notice of the substance of such
declaration to be given at convenient places in the said locality (the last of the dates of
such publication and the giving of such public notice, being hereinafter referred to as
the date of the publication of the declaration), and such declaration shall state] the
district or other territorial division in which the land is situate, the purpose for which it
is needed, its approximate area, and, where a plan shall have been made of the land, the
place where such plan may be inspected.

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 9
 The said declaration shall be conclusive evidence that the land is needed for a public
purpose or for a Company, as the case may be; and, after making such declaration, the
appropriate Government may acquire the land in manner hereinafter appearing.

After the declaration under Section 6, collector has to take order from the appropriate
government weather state or central for the acquisition of land under section 7. The
next step in the process of acquisition is that collector has to cause land to be marked
out, measured and appropriate plan to be made accurately, unless it is already done.
Requirement of this section deals only with approximation and does not require exact
measurement. An important process that takes place under this section is demarcation
which consists of marking out boundaries of land to be acquired, either by cutting
trenches or fixing marks as posts. Object is to facilitate measurement and preparation of
acquisition plan, but also let the private persons know what land is being taken. It is to
be done by requiring body that is the government department or company whichever
be the case. Obstruction under Section 8 and Section 4 are offence punishable with an
imprisonment not exceeding one year and with fine not exceeding fifty rupees.

Section 9 requires the collector to cause a public notice at convenient places expressing
government's intention to take possession of the land and requiring all persons
interested in the land to appear before him personally and make claims for
compensation before him. In affect this section requires collector to issue two notices
one to the locality of acquisition and other to occupants or people interested in lands to
be acquired, and it is a mandatory requirement.

Next step in the process of acquisition requires a person to deliver names or

information regarding any other person possessing interest in the land to be acquired
and the profits out of the land for the last 3 years. It also binds the person by requiring
him to deliver such information to the collector my making him liable under sections
175 and 176 of the Indian Penal Code. The object of this step is to enable the collector to
ascertain the compensation by giving him a vague idea.

The Final set of collector's proceedings involve an enquiry by the collector into the
objections made by the interested persons regarding the proceedings under section 8
and 9 and making an award to persons claiming compensation as to the value of land on
the date of notification under section 4. The enquiry involves hearing parties who
appear with respect to the notices, investigate their claims, consider the objections and
take all the information necessary for ascertain the value of the land, and such an
enquiry can be adjourned from time to time as the collector thinks fit and award is to be
made at the end of the enquiry.

The award made must be under the following three heads:

 Correct area of land

 Amount of compensation he thinks should be given
ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 10
 Apportionment of compensation

Section 11 makes it obligatory on the part of the collector to safeguard the interests of
all persons interested, even though they might not have appeared before him. In
awarding compensation the Land Acquisition Collector should look into estimate value
of land, give due considerations to the other specific factors. Value of the property in the
neighbourhood can be used as a criteria. The award should be made within 2 years.

CASE STUDY
In Shah Hyder Beig v. State of Maharashtra, (1992) 2 Mah. L. J. 799, the fact of the
case revealed that a piece of land was acquired under the Act for the alleged purpose of
constructing school and playground thereon. However the land was not used for any
purpose for a long period of ten years after it was acquired. In the circumstances, the
Bombay High Court held that this clearly reflected the mala fides of the State
Government. This was nothing less than a colourable exercise of powers by the
municipal authorities to prevent the owner of the land from enjoying his property. The
Court declared the notification to be bad in law and the award passed in the
proceedings was declared to be illegal. It was held that the owner was entitled to
possession of the land, after removing encroachments, if any.

In the case of State of UP. v. Lalji Tandan, AIR 2004 SC 32, in an interesting decision,
the Supreme Court held that the Land Acquisition Act cannot be invoked by the
Government to acquire its own property. In this case the Government had leased a piece
of land to a private party, and sought to deny renewal of the lease under the garb of
‘acquiring’ the same land. The Supreme Court rightly pointed out that it would be
absurd to hold that the provisions of the Act are applicable to land of which the State is
already the owner.

In the case of Radheyshyam Gupta v. State of Haryana, AIR 1982 P & H 519, according
to the High Court of Punjab and Haryana, even a person who purchases land after a
Notification has been issued under Section 4 of the Act has locus standi to challenge the
acquisition proceedings by filing a writ petition under Article 226 of the Constitution.

In B. N. Bhagde v. M. D. Bhagwat, AIR 1975 SC 1767, when the Government proceeds

to take possession of the land acquired by it under the Act, it must take actual
possession of the land since all interests in such land are sought to be acquired by it.
There can be no question of taking symbolic possession of such land.

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 11
B. DISCUSS THE PROCEDURE FOR CONVERSION OF LAND
FROM AGRICULTURAL TO NON-AGRICULTURAL LAND

INTRODUCTION
Land has always been a very controversial and disputed topic in India, in the context of
cultural as well as legal point of view. Land is indeed a property which can be bought
and sold like any other property, but the rules and regulations are different. In this
country, people buy land with multiple purposes like investment, farming, building a
house etc.

Right to property used to be a fundamental right under article 31 and article 19 (1)(f) of
the constitution but this scenario was changed with the 44th constitutional amendment
of 1978 when this right was shifted to article 300A and was downgraded as a legal right.

With the liberalization of the Indian economy in the early 1990s, India has fast adopted
urbanization as a way of life. This transformation has led to the fast conversion of rural
lands and stretches into urbanized centres of growth. These urban centres are
expanding and taking away the land used for agriculture and quickly transforming it
into residential, commercial, and industrial areas.

This process has also been facilitated by modifying various acts by multiple key state
governments in recent decades. While earlier most of the states didn’t allow the
conversion of fertile land (which is used for agriculture) to residential land, most of the
states have allowed this practice through an amendment to the specific acts, such as an
amendment to Section 143 of the ‘UP Zamindari Abolition and Land Reforms Act’
brought in by the UP Government in 2014.

Most of the Zamindari Abolition and Land Reforms Act amendments have been
undertaken to allow real estate developers to use fertile agricultural land for residential
purposes. However, even today, only dry or barren land patches are preferred for
conversion on a large scale.

 WHAT IS AGRICULTURAL LAND?

Agricultural land is commonly defined as the part of the earth’s surface that is found in
permanent pastures, crops, or arable land, etc. Agricultural land is defined according to
different state statutes. According to the collection of development indicators by the
World Bank, agricultural land in India was around 60.41% in 2014.

The law in India does not allow an individual or a corporation to build houses,
industries, factories, or any other type of infrastructure on agricultural land, regardless
of the ownership of the property. Such construction could only take place after the

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 12
 agricultural land is converted into non-agricultural land. These provisions are made to
protect the agricultural sector of the country which is one of the biggest economic
activities in India. It is done to safeguard the fertile lands of the country.

If the landowner wants to use an agricultural land for any other purpose than
agriculture, must get it converted to non-agricultural land first due legal process has to
be followed for this and this process is formerly known as land use conversion.

Using the agricultural land for residential use or any other use is illegal and punishable
under the provisions of different state laws. For example, in Delhi, under the Delhi Land
reforms act of 1954, the use of agricultural land for non-agricultural reasons without
permission can result in imprisonment of up to three years, or a fine of up to Rupees 10
lakh, or both. The converted land however must be used for the purpose stated only.

 WHAT IS NON-AGRICULTURAL LAND?

Land can be called non-agricultural land, if any activity in the nature of development is
carried over on the land which makes land unfit for cultivation. Non Agricultural land is
a barren land or not fit for cultivation; to construct any structure it is mandatory to
convert the agricultural land into Non Agricultural land otherwise law doesn’t permit
you to construct any structure on such land.

PROCEDURE FOR CONVERSION OF AGRICULTURAL

LAND TO NON-AGRICULTURAL LAND
Under section 44 of the Maharashtra Land Revenue Code 1966, before carrying out any
development on the land, an eligible person has to apply to the collector for the
permission to convert the use of agricultural land for any non-agricultural purpose, or
to change the use of land from one non-agricultural purpose to another non-agricultural
purpose.

 FORM OF APPLICATION FOR PERMISSION TO CONVERT USE OF LAND:

Every application for permission for the conversion of use of land from one purpose to
another as provided in Section 44 is required to make in the form in Schedule I to the
Collector.

 DOCUMENT REQUIRED TO ATTACHED WITH THE APPLICATION FORM:

For obtaining N.A. Permission, applicant has to attach documents as mentioned below:

1. Prescribed form duly filled in duplicate with court fee stamp of rupees 5/-
2. Extract of V.F. 7/12 and its 4 Xerox copies,

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 13
3. Copies of the all the relevant mutation entries (V.F. 6) pertaining to land in
question….one set,
4. If record is not available in revenue office, a certificate from the Revenue Officer stating
therein that the same is not available with him. (Talathi or Tahasildar as the case may
be),
5. Extract of village form 8 A….one copy,
6. Certified copies of the land map from the Taluka Inspector, Taluka Land Record Office,
7. 8 copies of site plan and 8 copies of *building plan (*if permission is asked for
constructing building),
8. If the land is not abutting to any classified road and right of way over the boundaries of
other survey number/Gat number is acquired, then extract of the relevant V.F.7/12 and
V.F. 6 ,
9. If the land in question is abutting EW, NH or SH, copy of the NOC from Highway
Authorities or other appropriate authority,
10. NOC from concern Grampanchyat/Municipal councils,
11. If the N.A. permission is already granted and application is to be made for change of use
of land, then copy of the NA order and sanctioned plan is to be attached,
12. If the land is attracting provisions of Bombay Tenancy and Agricultural Lands Act, 1948
then the Sale Permission received under section 43/63,
13. No dues certificate from farmer’s co-op society,
14. Certificate received from the Talathi stating therein that the land in the question is not
under acquisition.
15. Any other documents such as NOC and clearance certificate etc, if the land attracts
provisions of some other laws
16. If temporary permission is already granted for layout and application is made for final
permission under the circumstances, then please attach the below documents:

 Copy of temporary NA order permission

 Plan prepared by survey department after subdivision of land in the plots, roads, open
spaces and amenity places etc.
 8 copies of the Architect’s plan
 extract of V.F. 7/12 and its 4 xerox copies and
 Copy of the mutation entry (V.F. 6) related to the temporary NA permission.

The Collector has to follow the procedure as mentioned below for granting permission
to convert the use of agricultural land for any non-agricultural purpose or to change the
use of land from one non-agricultural purpose to any other non-agricultural purpose:-

Collector has to send a copy of one application form to the concerned Tahasildar for
collecting detailed information of the land in question.

If the area is within the jurisdiction of a Municipal Corporation or Municipal Council, the
Collector consults them with reference to acquiring the building permission.
ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 14
 When there is no Municipal Corporation or Municipal Council, the applicant has to
submit a “No Objection Certificate” to the Collector, which is to be acquired from the
Gram Panchayat of the village, for the change of use of land.

If the land falls within the limit of any Regional Plan prepared under provisions of MRTP
Act 1966, the Collector shall grant permission in confirmative to Development Control
Regulations prepared by planning authorities and special planning authorities.

In addition to the Development Control Regulations prepared by the planning

authorities and special planning authorities (which are the instruments of regulating
development), there are other laws, rules & regulations, policies as well which aid the
development control efforts.

There shall be no contravention of the provisions of any law, or any rules, regulations or
orders made or issued under any law for the time being in force, by the State or Central
Government or any local authority, statutory authority, Corporation controlled by the
Central or State Government or any Government Company pertaining to management of
Coastal Regulation Zone, or of the Ribbon Development Rules, Building Regulations, or
rules or any provisions with regard to the benefited zones of irrigation project and also
those pertaining to environment, public health, peace or safety. The collector is required
to consult the authorities dealing with these subjects.

These authorities may give clearance for development under some conditions; these
conditions shall be binding on the applicant and such other conditions as the collector
may, under the order of the State Government impose.

List of some of the authorities functioning important role In Development Control

are given below.

 Town Planning Department:

 Health Department
 The Mumbai Village Panchayat Act, 1958
 Laws Related to Development Along Roads
 Mumbai Highways Act, 1955
 National Highway Act 1956
 Environment (Protection) Act, 1986
 Indian Forest Act, 1927
 Forest Conservation Act, 1980
 Maharashtra Acquisition of Private Forests Act, 1975
 Minor Mineral (Extraction) Act, 1955 and Explosives Act, 1984

Apart from the conditions imposed by these authorities, there are other basic conditions
as well, which shall be binding on the applicant and also such other conditions as the

ASSIGNMENT OF LAND LAWS | KRUTI SHAH|S.Y.L.L.B.| ROLL NO. 2122248| PAGE 15

 collector may, under the order of the State Government impose. The basic conditions
are as follows:

1. The grant of permission shall be subject to the provisions of the Code and Rules made
therein.
2. The land shall not be used for a purpose other than that for which permission is
granted;
3. The applicant should commence the non-agricultural use within one year from the date
of order, made by the Collector. Failure to do so, the permission granted shall be
deemed to have lapsed, unless the Collector extends the said period from time to time.
4. The applicant shall be liable to pay such altered assessment as may be determined with
reference to the altered use under Section 110, or as the case may be, Section 114;

If the permission is for building site, then in addition to the above,

a. The applicant shall level and clear the land sufficiently to render it suitable for the non-
agricultural purpose for which the permission is granted;
b. The applicant shall not use the land and the building erected thereon for any purpose
other than the purpose for which the permission is granted. Under a circumstance,
where the applicant wants to use the land for any other purpose, he will have to obtain
the permission of the Collector under the provision of the code and the rules made
therein.
c. Applicant shall not divide the plot or subplot without prior permission of collector,

Plan annex to the application is sanctioned under the conditions given below:

1. Demarcation is to be done as per provisional sanctioned lay out and should get
surveyed through Taluka Inspector, Land Record for obtaining final permission.
Permission for building shall be granted only after the completion of this procedure.
2. It is responsibility of the applicant to maintain the width of the road as per the
sanctioned lay out. Also he shall construct a road along with drainage system, suitable
for vehicular traffic
3. Applicant shall attach the sanctioned layout plan while applying for building
permission.

d. Applicant shall plant trees on both sides of the road and it will be his responsibility to
ensure the sustainability of this plantation.
e. It mandatory for the applicant to provide road entry to the adjacent land’s proposed
layout.
f. If the provision for supply of drinking water system does not exist in the area, then it is
the responsibility of the applicant to make the necessary arrangement.
g. If the permission is given under ‘Gaothan Extension Scheme’, then the sale of plot is
restricted to local people only.

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 16
h. It is mandatory for the applicant to not impede the natural ways of water or he will have
to provide alternate arrangements.
i. Applicant shall not sell plot prior to obtain final permission.
j. Applicant shall inform the Tahsildar in writing through the Talathi the date on which
the change of user of land commenced, within thirty days from such date. If the
applicant fails to inform the Tahsildar within the period specified above he shall be
liable to pay in addition to the non-agricultural assessment such fine as the Collector
may, subject to rules made in this behalf, direct but, not exceeding five hundred rupees.
k. Applicant shall pay fee for survey within one month from the date of NA use. Also he
shall fixed compound to outer boundary of the scheme.
l. Applicant shall execute sanad in prescribed form within one month from the date of NA
use.
m. Applicant shall erect building within three years from the date of grant of sanad. If
applicant fails erect building within stipulated period, the collector may extend the
period in his discretion. Also he shall liable for fine.
n. On event of violation of any terms or conditions imposed while granting permission, the
permission shall be cancelled. Also applicant shall be liable for fine.
o. The above terms and conditions are binding on both applicant and holder of the plot.

 COLLECTOR MAY REFUSE PERMISSION FOR CONVERSION OF LAND:

Depend upon location of the land collector may require to consult some of the
authorities mentioned above. After receiving opinions from them if collector feels that
N.A. permission asked for is in contradictory to the laws, rules, regulations and policies
which aided the development control efforts, he may reject the application with stating
the reasons in writing.

Collector is required to inform his decision within the ninety days from the date of
acknowledgement of the application, or from the date of receipt of the application-- if
the application is not acknowledged, the permission applied for shall be deemed to have
been granted, but subject to N.A. permission asked for is not in contradictory to the
laws, rules, regulations and policies which aided the development control efforts.

 DATE ON WHICH NA USE STARTED IS REQUIRED TO INFORM THE TAHASILDAR:

The person to whom permission is granted or deemed to have been granted under this
section shall inform the Tahsildar in writing through the Talathi the date on which the
change of user of land commenced, within thirty days from such date. The person has to
pay N.A. taxes from the date on which NA use begins.

If the person fails to inform the Tahsildar within the period specified above he shall be
liable to pay in addition to the non-agricultural assessment such fine as the Collector
may, subject to rules made in this behalf, direct but, not exceeding five hundred rupees.

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 17
  GRANT OF SANAD:

Where land is permitted to be used for non-agricultural purpose, a Sanad shall be

granted to the holder thereof in the form in Schedule IV if the land is situated outside
the jurisdiction of the Planning Authority, and in the form in Schedule V if the land is
situated within the jurisdiction of the Planning Authority.

Sanad is agreement between government and occupant. Conditions of sanad are binding
on both the government and occupant. Sanad is prima facie evidence of title but not
conclusive evidence.

 PENALTIES FOR UNAUTHORISED NON-AGRICULTURAL USE:

If any land is used for non-agricultural purpose by occupant without obtaining

permission, it is lawful for the collector to stop its unauthorised use, ask him to pay NA
taxes and penalty.

 REGULARISATION OF UNAUTHORISED USE:

Where permission for non-agricultural use was possible but occupant had not taken
care to apply for permission, under the circumstances collector may regularized his
unauthorised use, subject to the following terms and conditions, namely:-

i. that the holder shall pay the amount of conversion tax leviable and shall pay non-
agricultural assessment on the land with reference to the altered use since the
commencement of that use
ii. that the holder shall pay such fine not exceeding 10forty times the non-agricultural
assessment on the land with reference to the altered use,
iii. that the holder shall abide by the conditions specified in column “B” above so far as they
are applicable, and such other conditions as the Collector may deem fit to impose.

 CONTINUANCE OF OFFENDING UNAUTHORISED CONSTRUCTION:

a. Where the unauthorised non-agricultural use is contradictory to land used plan

prepared for that area by the concern authorities and the Collector is satisfied that the
demolition of the offending unauthorised construction is likely to cause heavy damage
and serious inconvenience and hardship, he may, if the holder so desires, and in areas
falling within the jurisdiction of Planning Authority, after consulting such Planning
Authority, allow such construction to stand, with the sanction of the State government,
subject to conditions (i) and (ii) in “G” and the additional conditions-
b. that the holder shall pay a composition fee not less than fifty percent of the cost
incurred on the offending unauthorised construction or forty times the non-agricultural
assessment payable on the land with reference to the altered use, whichever is greater
[and]

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 18
c. that the holder shall agree in writing to demolish the offending unauthorised
construction without claiming compensation if after reasonable period thereafter, he is
asked to do so by the Collector, in the public interest, failing which the Collector shall do
so at the holder’s risk and costs:

[Provided that, if the Collector having regard to the pecuniary condition of the holder is
of opinion that undue hardship will be caused to the holder by the recovery of the
amount of composition fee laid down in condition(a), and that the offending
unauthorised construction was not constructed by the holder with the knowledge that it
was unauthorised, the Collector may, with the sanction of the State government, reduce
the amount of composition fee payable by the holder under condition(a) to such extent
as he may think fit.]

“forty times the non-agricultural assessment on the land” means forty times the non-
agricultural assessment, only on that area of the land which is under unauthorised non-
agricultural user.

 ON REGULARISATION SANAD SHALL BE GRANTED:

When any unauthorised non-agricultural use permitted to be continued under “G” or

“H”, a Sanad in the form in Schedule VI shall be granted to the holder.

CASE STUDY
T. Manjula vs. The Secretary to Govt. of Tamil Nadu and Others, In this case, a
petition was filed before the high court under article 226 of the Constitution praying for
the issue of a writ of mandamus for forbidding the respondent from giving approval for
conversion of agricultural land to residential layouts without following the mandatory
process laid down by law.

The petitioner is a resident of a village in Vellore district and the allegation was that
from time-to-time complaints have been made about unauthorized conversion of
agricultural lands into non-agricultural lands used for residential purposes or other
purposes resulting in an unplanned urban isolation without the required permission
from director of Town and country planning or any other official. it was further claim
that even after so many complaints, no actions or preventive measures were taken.

The petitioner also gave any registration of the land located in S. No. 835-1007, which
contain water areas, temple lands, porambok lands etc. Public interest litigation was
filed regarding this matter. The illegally and nuisance caused to the residents of the
village by such illegal conversion of agricultural land for residential purposes is a matter
of common knowledge in the village.

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 19
 The court has periodically given directions for taking necessary actions, but the
problem is still there in no actions are taken for the better and it is not sure that the
purchaser may or may not be fully aware of this. This is resulting in rapid urbanization
and valuable land is getting destroyed. A prayer is presented before the court to stop
this illegal urbanization and this illegal conversion and save the agricultural land of the
village.

The court took into its consideration the argument from both the parties and decided
that an expert committee shall be set up for this purpose and groundwork should be
done to look into the measures to be taken to prevent these unauthorized conversions
of land. The court also held that this exercise to be undertaken within a maximum
period of one month from the date of receipt of order and that there are unapproved
layouts and such sales and construction have taken place. and it would proceed to take
action in accordance with the law in respect of unauthorized conversion of land within a
maximum period of two months thereafter. The writ petition accordingly stands
disposed of leaving the parties to bear their own cost.

C. IS IT COMPULSORY FOR AGREEMENTS ENTERED INTO

UNDER THE MAHARASHTRA OWNERSHIP OF FLATS ACT
1963 TO BE REGISTERED? WHAT ARE THE
CONSEQUENCES OF NON REGISTRATION
INTRODUCTION
During the times preceding 1961, there were found to exist in several areas in the State,
sundry abuses, malpractices and difficulties relating to the promotion of the
construction and the sale and management and transfer of flats taken on ownership
basis and that such abuses, malpractices and difficulties were increasing. In 1963 the
above Act was therefore passed for the regulation of basis in the State of Maharashtra.
By virtue of the provisions of the Act and the Notifications issued this Act is made
applicable to the Areas within State of Maharashtra.

The Maharashtra Ownership of Flats (Regulation of the Promotion, Construction, Sale,

Management and Transfer) Act, 1963 (“the MOFA”) has been enacted to regulate the
promotion, construction, sale, management and transfer of flats sold on an ownership
basis within the State of Maharashtra. The MOFA (Maharashtra Ownership of Flat Act)
is an important piece of legislation as it lays down the responsibilities of real estate
developers / builders in respect to flats sold by them and conversely the rights of flat
purchasers within the State. It was introduced in the Legislative Assembly, which aims

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 20
 at protecting the interest of flat purchasers and show in transparency and discipline in
transaction of flats by putting a check on malpractices.

 WHAT IS A “FLAT”?

The MOFA (Maharashtra Ownership of Flat Act) defines the term to mean:

“A separate and self-contained premises, which is used or is intended to be used as a

Residence, Office, Show-room, Shop, Godown, carrying on of any industry or business
including a Garage and the premises forms part of a building.” The term flat also
includes an apartment. The Explanation to the definition provides that even if a
separate bathing, washing, sanitary, etc. arrangement is made between two or more
premises, they shall be deemed to be separate and self-contained.

Thus, in order to be construed to be a flat, all the above ingredients must be fulfilled.
This is an important definition because if any premise is not regarded as a flat the
provisions of the MOFA (Maharashtra Ownership of Flat Act) do not apply.

 WHO IS A PROMOTER?

The second most important definition is that of the term “promoter”. It is defined to
mean a person:

Who constructs or causes to be constructed a block or building of flats or apartments

for selling all or any of them to a Company, Co-operative Society and Associations of
Persons. The term promoter includes his assigns and thus, if a person assigns his
interests in the land to another person then the assignee would become a promoter. In
the event that the builder and the person selling the flats are different, then both of
them will be considered as promoters.

OBJECT AND LEGISLATIVE HISTORY

With the constant increase in population and with limited infrastructure to
accommodate them, there was an acute shortage of housing in several areas of the State
of Maharashtra. Consequently, various abuses, malpractices and difficulties relating to
the promotion of the construction of, sale and management and transfer of flats taken
on ownership basis started increasing. Some of these malpractices include –

1. Dishonest promoter tried to avoid execution of documents with the purchaser.

2. Promoter made misuse of the deposits received by the prospective flat purchaser
3. There were inordinate delays in forming the co-operative housing societies or
apartments.

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 21
 4. The promoter used to make alterations in the structure of the flat without the consent of
the buyers.
5. There was inordinate delay in putting the purchaser in possession of the flat

In order to advise itself as respects the manner of dealing with such matters, the
Government appointed a Committee called the Pay Master Committee to inquire into
and report to the State Government on the several matters referred to aforesaid with
the purpose of considering measures for their amelioration. The said Committee
submitted its report to Government in June 1961.

After considering the recommendations and suggestions made therein the Government
enacted the Maharashtra Ownership of Flats Act (“MOFA”) to make provisions for the
regulation of the promotion of the construction, sale and management and transfer, of
flats taken on ownership basis in the State of Maharashtra.

The main intention of the legislature was to protect the rights and interest of the
common man who are interested in having own dwelling house as a shelter with a
reasonable finance by the financial institution in the State.

COMPULSORY REGISTRATION OF AGREEMENT

1. Notwithstanding anything contained in any other law, a promoter who intends to
construct or constructs a block or building of flats all or some of which are to be taken
or are taken on ownership basis, shall, before, he accepts any sum of money as advance
payment or deposit, which shall not be more than 20 per cent, of the sale price enter
into a written agreement for sale with each of such persons who are to take or have
taken such flats, and the agreement shall be registered under [the Registration Act,
1908 (hereinafter in this section referred to as "the Registration Act, 1908"] [and such
agreement shall be in the prescribed form.]

The agreement to be prescribed under sub-section (1) shall contain inter alia the
particulars as specified in clause (a); and to such agreement there shall be attached the
copies of the documents specified in clause (b)-

a) particulars-

i. if the building is to be constructed, the liability of the promoter to construct it according

to the plans and specifications approved by the local authority where such approval is
required under any law for the time being in force;
ii. the date by which the possession of the flat is to be handed over to the purchaser;
iii. the extent of the carpet area of the flat including the area of the balconies which should
be shown separately;

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 22
 iv. the price of the flat including the proportionate price of the common areas and facilities
which should be shown separately, to be paid by the purchaser of flat; and the intervals
at which instalments thereof may be paid;
v. the precise nature of the organisation to be constituted of the persons who have taken
or are to take the flats;
vi. the nature, extent and description of limited common areas and facilities;
vii. the nature, extent and description of limited common areas and facilities, if any;
viii. percentage of undivided interest in the common areas and facilities appertaining to the
flat agreed to be sold;
ix. statement of the use for which the flat is intended and restriction on its use, if any;
x. percentage of undivided interests in the limited common areas and facilities, if any,
appertaining to the flat agreed to be sold;

b) copies of documents,-

i. the certificate by an Attorney-at-law or Advocate under clause (a) of sub-section (2) of

section 3;
ii. Property Card or extract of Village Forms VI or VII and XII or any other relevant revenue
record showing the nature of the title of the promoter to the land on which the flats are
constructed or are to be constructed;
iii. the plans and specifications of the flat as approved by the concerned local authority,

2. Any agreement for sale entered into under sub-section (1) shall be presented, by the
promoter or by any other person competent to do so under section 32 of the
Registration Act, at the proper registration office for registration, within the time
allowed under sections 23 to 26 (both inclusive) of the said Act and execution thereof
shall be admitted before the registering officer by the person executing the document or
his representative, assign or agent as laid down in sections 34 and 35 of the said Act
also within the time aforesaid:

Provided that, where any agreement for sale is entered/ into, or is purported to be
entered into, under sub-section (1), at any time before the commencement of the
Maharashtra Ownership Flats (Regulation of the promotion of construction, sale,
management and transfer) (Amendment and Validating Provisions) Act, 1983, and such
agreement was not presented for registration or was presented for registration but its
execution was not admitted before the registration officer by the person concerned,
before the commencement of the said Act, then such document may be, presented, at
the proper registration office for registration, and its execution may be admitted, by any
of the persons concerned referred to above in this sub-section, on or before the 31st
December 1984, and the registering officer shall accept such document for registration,
and register it under the Registration Act, as if it were presented, and its execution was
admitted, within the time laid down in the Registration Act:

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 23
 Provided further that, on presenting a document for registration as aforesaid if the
person executing such document or his representative, assign or agent does not appear
before the registering officer and admit the execution of the document, the registering
officer shall cause a summons to be issued under section 36 of the Registration Act
requiring the executant to appear at the registration office, either in person or by duly
authorised agent, at a time fixed in the summons. If the executant fails to appear in
compliance with the summons, the execution of the document shall be deemed to be
admitted by him and the registering officer may proceed to register the document
accordingly. If the executant appears before the registering officer as required by the
summons but denies execution of the document, the registering officer shall, after giving
him a reasonable opportunity of being heard, if satisfied that the document has been
executed by him, proceed to register the document accordingly.

The Bombay High Court’s decision in the case of Ramniklal Kotak v. Varsha Builders,
AIR 1992 Bom 62 stated that “To prevent bogus sales being effected by a Promoter and
to put a check to malpractices indulged in by the Promoters in regard to sales and
transfer of flats, the Legislature has put the restrictions. The provisions of section 4 are
mandatory and not directory in nature.

EFFECT OF NON-REGISTRATION OF AGREEMENT

Section 13 states that Any promoter guilty of contravention of section 3 (general
liabilities), section 4 (registration of agreement), section 5(maintenance of separate
accounts for deposits), section 10 (formation of society or company) or section 11
(conveyance of title) shall, on conviction, be punished with a term up to 3 years and/or
a fine.

Any promoter who commits a criminal breach of trust in respect of any advance or
deposit given to him for specified purposes shall, on conviction, be punished with a term
up to 5 years and/or a fine. The penalty for contravening any other provision of the Act,
on conviction, is a term of up to 1 year and/or a fine of up to Rs. 10,000.

A number of promoters did not register the agreements executed by them under section
4 in spite of the clear and specific provision in that section and the penal provision
made in section 13. In the Association of Commerce House Block Owners Limited v.
Vishndas Samaldas, (1981) 83 Bom. L.R. 339, the High Court had held that section 4
contains an absolute enactment, which must be obeyed absolutely. If such absolute
enactment was not obeyed, the consequence is that the agreement between the
promoter and the purchaser was wholly invalid and altogether void, creating no rights
between the parties. In view of this judgment hundreds of purchasers were not able to
take proceedings for specific performance of such agreements and to get conveyance
from the promoter for transferring his right, title and interest to them. Taking
ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 24
 advantage of the situation, the very purpose of the Act of safeguarding the rights of the
bona fide purchasers is being defeated by the bad conduct of some of the promoters,
Moreover, non-registration of large number of such documents entails loss of revenue
to Government, because the registration fee payable to Government was being evaded.

It was, therefore, necessary to undertake legislation to validate the non-registered

agreements and to give to the promoters or the persons claiming rights under such
agreements, an opportunity to get them registered, within a reasonable period upto the
3lst December, 1984, so that these agreements, may again become enforceable. Thereby
Government will get its due revenue from registration fees on the agreements, which
will then be presented for registration. It was also necessary to provide, as a permanent
safeguard on the lines of the proviso to section 49 of the Registration Act, 1908 (XLI of
1908), that if any agreement entered into under section 4(1) of the Ownership Flats Act
remains unregistered for any reasons, it can be received as evidence for certain
purposes specified in section 4A inserted in the Ownership Flats Act. The Act seeks to
achieve this objects. (M.G.G. Pt. V. 1983, p. 449).

Norms or format of contract.--In this case the plaintiff has sued for specific performance
of an agreement/contract of sale/purchase of the suit premises and incidental reliefs.
The strict norms or format is not a mandatory requirement for a writing to constitute a
contract between the parties though a formal agreement incorporating the entitlement
of the flat purchasers under a MOFA is a statutory requirement.

The specific performance is a discretionary remedy and the relief of injunction is an

equitable relief. If a specific contract between the parties is made out, the property
contracted for deserves to be protected pending the suit.--Sushil Javahar Shivdasani v.
Air Inn Put Ltd., 2009 (2) All M.R. 53; Panchanan Dhara v. Monmatha Nath Maity,
2006 (5) SCC 340.

Section 4A of Maharashtra Ownership of Flats Act states the effect of non-registration of

agreement required to be registered under Section 4. Where an agreement for sale
entered into under sub-section (1) of section 4, whether entered into before or after the
commencement of the Maharashtra Ownership Flats (Regulation of the Promotion of
Construction, Sale, Management and Transfer) (Amendment and Validating Provisions)
Act, 1983, remains unregistered for any reason, then notwithstanding anything
contained in any law for the time being in force, or in any judgement, decree or order of
any Court, it may be received as evidence of a contract in a suit for specific performance
under Chapter II of the Specific Relief Act, 1963, or as evidence of part performance of a
contract for the purposes of section 53A of the Transfer of Property Act, 1882, or as
evidence of any collateral transaction not required to be effected by registered
instrument.

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 25
 CONCLUSION
1. The law of Land Acquisition jeopardises private interest for public interest and hence it
denies an individual his right to property. It overrides the right of a person to own a
property, so the law in general should be strictly construed. The strict construction of
the Law of Land Acquisition has been emphasised by the court for the last 60 years as it
does not hold the person whose property is being taken and state at par. The owner of
the property has no bargaining power with the state in such circumstances nor does he
have a say in compensation; so it’s inevitable in the interest of equity that the law
should be strictly construed and the procedure which provides for various checks and
balances should by strictly complied with.

Compulsory acquisition can be effective only in accordance with Acquisition because it

is an inroad into citizens right to property. On this matter the established law is that if
from the purpose for which the land is acquired, it is apparent on the face of it that the
purpose is not a public purpose and there can be no two arguments to construe it
otherwise, means the act of the government is ultra vires so in this case the public
purpose is justifiable i.e. courts can look into the matter. But when the purpose
mentioned can be interpreted either ways of being a public purpose or not, it is not
justifiable.

With respect to an enquiry or proceedings by the Land Acquisition Collector is just an

Administrative act, it is neither Judicial nor a Quasi-Judicial act. Though section 14 gives
the power to summon and enforce attendance of witness and compel production of
documents as in Civil Procedure Code to the Civil Court. The offer made by the Land
Acquisition Collector binds the government not the persons interested. If there is an
agreement between the collector and the persons interested as to the compensation,
area of land, apportionment (in case of more than one persons interested) no need
arises for further proceedings otherwise provisions of Section 18 as to the judicial
settlement are invoked.

As to the brief outline of the Land Acquisition Act, 1894 sections 1 to 3 give the short
title, object and reasons and the important definitions. Sections 4 to 17 deals with the
process of acquisition. Then comes sections 18 to 28 which describe the reference to
court and procedure thereupon in the off chance of a conflict with respect to
compensation. Sections 29 and 30 deal with Apportionment in case of more than one
individual interested, and section 3 to 34 lay down the payment of compensation.
Sections 35 to 38 deal with temporary acquisition of land and finally sections 38 to 44
deal with the acquisition of land for companies.

2. Land is one of the most important resource for a country especially for a developing
country like India. The Indian economy is heavily boosted by agricultural sector. That is
why there is a need for strict laws when it comes to land ownership and conversion of

ASSIGNMENT OF LAND LAWS |KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 26
 agricultural land to non-agricultural land. The provisions need to be binding, and
penalties need to be strictly enforced. During the conversion of agricultural land to non-
agricultural land, the land loses its value and fertility for other reasons like residential,
commercial or any other industrial purposes. The land conversion process is mandated
by the state laws and the authorization for search land conversion is not given easily.
Such authorization is only given when all the requirements are fulfilled and in case the
landowner uses the land for any other purpose than the one mentioned in land
conversion must face heavy penalties and punishments. Land conversion must be used
as a tool not and as a weapon. The various courts of this country and the government on
multiple occasions have laid down the conditions for land conversion which are to be
followed.

Points to remember before getting the land conversion done. In the case of joint
ownership, the ID proofs of all the owners need to be produced. The process must be
achieved in a specific timeline. If the timeline is breached, the owners will have to
reinitiate the process. In case of encumbrances, due or mortgages, the conversion
application for agricultural land change to non-agricultural land will automatically get
rejected. If the owner uses the land for some other usage, other than the one mentioned
in the conversion application, the owner can be penalized. While the NRIs are not
allowed to buy agricultural land in India, they can buy these lands if the due process has
been adopted to change the land use. Hence with the growing industrialisation and
urban development, the government has allowed the conversion of agricultural land to
other land use, subject to the charges and conditions as stated here.

3. The Maharashtra Ownership of Flats (Regulation of the Promotion, Construction, Sale,

Management and Transfer) Act, 1963 (“the MOFA”) has been enacted to regulate the
promotion, construction, sale, management and transfer of flats sold on an ownership
basis within the State of Maharashtra. The MOFA (Maharashtra Ownership of Flat Act)
is an important piece of legislation as it lays down the responsibilities of real estate
developers / builders in respect to flats sold by them and conversely the rights of flat
purchasers within the State. It was introduced in the Legislative Assembly, which aims
at protecting the interest of flat purchasers and show in transparency and discipline in
transaction of flats by putting a check on malpractices.

Section 4 of the MOFA (Maharashtra Ownership of Flat Act), before accepting any
payment as advance payment or deposit from a flat purchaser, the Promoter has a
liability to execute a written agreement in the prescribed format with every flat
purchaser and to get this agreement registered under the Registration Act. Further, the
amount of deposit or advance cannot exceed 20% of the sale price. Section 5 the
Promoter is required to maintain separate bank accounts of sums taken as advance or
deposit and he shall hold them for the purpose for which they were taken. The Bombay
High Court’s decision in the case of stated that “To prevent bogus sales being effected

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 27
 by a Promoter and to put a check to malpractices indulged in by the Promoters in
regard to sales and transfer of flats, the Legislature has put the restrictions. The
provisions of section 4 are mandatory and not directory in nature. Section 4A of the Act
states that even if any agreement is not registered under section 4 of the MOFA
(Maharashtra Ownership of Flat Act), it will be admissible as evidence in a suit for
specific performance or as evidence for part performance under section 53A of the
Transfer of Property Act.

BIBLIOGRAPHY
 https://www.cbgaindia.org/blog/land-acquisition-public-purpose-time-amend-legal-
framework/
 https://www.indiatimes.com/explainers/news/land-acquisition-land-acquisition-
process-in-india-
555781.html#:~:text=The%20government%20can%20acquire%20private%20land%2
0for%20the%20purpose%20of,include%20any%20other%20private%20property.
 https://www.legalserviceindia.com/article/l257-Process-of-Land-
Acquisition.html#:~:text=Article%2031(2)%20categorically%20states,in%20generally
%20and%20vitally%20concerned%20.
 https://www.aaptaxlaw.com/land-acquisition-act/section-6-land-acquisition-act-
declaration-that-land-is-required-for-a-public-purpose-section-7-collector-to-take-
order-for-acquisition-section-6-7-of-land-acquisition-act-1894.html
 https://www.lawyersclubindia.com/articles/conversion-of-agricultural-land-to-non-
agricultural-land-13808.asp
 https://www.magicbricks.com/blog/conversion-of-agricultural-land-to-other-land-
use/123360.html
 http://www.landsofmaharashtra.com/nonagriculturalland.html#:~:text=Land%20can
%20be%20called%20non,makes%20land%20unfit%20for%20cultivation.
 https://www.estartindia.com/knowledge-hub/blog/conversion-of-agricultural-land-to-
nonagriculture-land
 https://blog.ipleaders.in/what-every-mumbaikar-should-know-about-maharashtra-
ownership-of-flat-
act1963/#:~:text=The%20Maharashtra%20Ownership%20of%20Flats,within%20the
%20State%20of%20Maharashtra.
 https://maharashtrahousingandbuildinglaws.com/mofa-act-1963/
 https://www.legitquest.com/act/maharashtra-ownership-flats-regulation-of-the-
promotion-of-construction-sale-management-and-transfer-act-1963/63FA
 https://www.lawqedu.com/wp-content/uploads/2020/04/Sample-Cooperative-Law-
Salient-Features-of-MOFA.pdf
 http://www.bareactslive.com/MAH/MH182.HTM

ASSIGNMENT OF LAND LAWS | KRUTI SHAH |S.Y.L.L.B.| ROLL NO. 2122248| PAGE 28