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Maharashtra Land Revenue MANUAL

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INDAN AUDIT AND ACCOUNTS DEPARTMENT .

RECEIPT AUDIT MANUAL

( LAND REVENUE)

OFFICE OF THE ACCOUNTANT GENERAL(AUDIT)-II, MAHARSHTRA,

NAGPUR

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PREFACE

The audit of the Land Revenue Receipts and refunds has been taken up by this
office from April 1974. This Manual has been prepared in accordance with the
instructions contained in the Comptroller and Auditor General’s Circular No. 7 of 2004
circulated under letter no.299-SRA/3(I)/2004; Dt. 26/07/2004.

The instructions contained in this Manual are for the guidance of the members of
the State Receipt Audit Headquarters and the Inspection parties. They should be
considered as Supplementary to those contained in the C.A.G’s Manual of Standing
Orders (Technical) volume- I and should not be quoted as authority in any of the
correspondence outside this office.

S.R.A.(HQ) Section is responsible to keep this Manual upto date.

Suggestions for improvement of this Manual as well as indication of omissions

and errors, if any, may be communicated to S.R.A.(HQ) Section.

CONTENTS
REVENUE AUDIT MANUAL
(Land Revenue)
PREFACE ...
Abbreviations used ...
Publications referred to in this Manual ...
Part I
Chapter
1. Introduction ...
2. Historical and Legislative Background ...
3. Organizational set up of Revenue Department ...
Part II
4. Definition and scope of Land Revenue ...
5. Definitions with important judicial decisions ...
explaining the meaning of various terms used in
various Acts and Rules

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6. Agricultural Land Revenue ...

7. Reduction, Suspension and Remission of Land ...
Revenue
8. Non-agricultural assessment procedure and scope ...
9. Grant of lands/and leases with right of Government ...
to Mines and Minerals
10. Miscellaneous items of Land Revenue, ...
encroachments, water rates, etc.
11. Mines and Minerals ...
Part III
12. Maintenance of Forms and Accounts at ...
Village/Taluka level
Part IV
13. Special feature of Bombay City Land Revenue ...
Audit
Part V
14. Extent and periodicity of Land Revenue Receipt ...
Audit/Decisions of the Comptroller and Auditor
General of India
15. The Maharashtra Agricultural Lands (Ceiling on ...
Holdings)
16. Audit Procedure ...
Part VI (Appendices)
1. (A) Rules for assessment in Western
Maharashtra. ...
(B) Rules for assessment in Ex- M.P.
Region (Vidharbha). ...

(C) Rules for assessment in Ex-Hyderabad

State region (Marathwada).
...
2. Broad Outline of Forms and Registers relating to
Revenue Accounts ...
3. Districts and Tahsils in Maharashtra. ...

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4. Questionnaire to be sent to Revenue Offices before

commencement of local audit.
...
5. Rates of Royalty recoverable. ...
6. Files maintained in SRA(HQ). ...
Annexure
7. Some imp. G.R’s / circulars on N.A.A.
1. Title sheet
Index

ABBREVIATIONS USED

B L R Rules 1921 - The Bombay Land Revenue Rules, 1921

E.G.S. - Employment Guarantee Scheme
Ex- MP - Ex-Madhya Pradesh
K.J.P. - Kami Jasth Patrak
M.L.R. Code - The Maharashtra Land Revenue Code, 1966
M.P.L.R. Code - The Madhya Pradesh Land Revenue Code
1954
N.A. - Non- Agricultural
N.A.A. - Non- Agricultural Assessment
S.R.A. - State Receipt Audit
T.F. - Taluka Form
V.F. - Village Form
V.P. - Village Panchayat
Z.P. - Zilla Parishad

Books, Acts, Codes and other Publications referred to in this Manual

Acts :

1. The Constitution of India

2. C.A.G.’s (Duties, powers and Conditions of Service) Act, 1971
3. Comptroller and Auditor General’s M.S.O. (T) Vol. I

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4. Bombay City Land Revenue Act, 1876

5. Bombay Land Revenue Code, 1879
6. The C.P. Land Revenue Act 1917
7. The Berar Land Revenue Code, 1928
8. M.P. Land Revenue Code, 1954
9. The Madhya Pradesh Abolition of Proprietary Rights (Estates) Mahals and
Alienated Lands) Act, 1950
10. Hyderabad Land Revenue Act, 1317 F.
11. The Hyderabad Land(Special Assessment) Act, 1952.
12. The Hyderabad Abolition of Jagir Regulation Act, 1949
13. The Hyderabad Abolition of Inam Act, 1954
14. The Bombay Village Panchayat Act, 1958
15. Maharaashtra Zilla Parishad and Panchayat Samiti Act, 1961
16. The Maharashtra Education (cess) Act, 1962
17. The M.L.R. Code, 1966
18. The Maharashtra Increase of L.R. and Special Assessment Act, 1974
19. The Maharashtra L.R. Code (Amendment) Act, 197
20. The Maharashtra L.R. Manual Vol. I to V

Rules :
21. The Bombay Land Revenue Rules, 1921
22. The Bombay L.R. Rules 1921 by F.G.H. Anders
23. The Maharashtra Land Revenue (Allusion and Dilution) Rules, 1967
24. The Maharashtra Land Revenue (Conversion of use of land and N.A.A.) Rules,
1969.
25. The Maharashtra Land Revenue (Assessment and Settlement of Land Revenue on
Agricultural Lands) Rules, 1970.

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PART – I
CHAPTER - I
INTROD UCTION
1.1 The Comptroller and Auditor General of India has been entrusted with the duty to
audit all receipts which are payable into the consolidated fund of India and of
each State and of each Union Territory having a legislative Assembly and to
satisfy himself that the rules and procedure in that behalf are designed to secure
an effective check on assessment, collection and proper allocation of revenue and
are being duly observed and to make for this purpose, such examination as he
thinks fit and to report thereon.
1.2 Audit of revenue receipts differs from that of expenditure. In the former,
attention must be given not only to examining the records of amounts actually
received but also ascertaining that adequate precautions are taken to ensure that
all the amounts received or due to be received during a particular period of
accounts, are properly and promptly brought to account.
1.3 Audit should not in any way substitute it-self for the Revenue Authorities in the
performance of their statutory duties, but audit should satisfy itself, in general that
the departmental machinery is sufficiently safe-guarded against errors and frauds
and so far as can be judged, procedure is calculated to give effect to the
requirements of Law.
1.4 Audit of receipts will be regulated mainly with reference to the statutory
provisions or financial or other rules or orders which may be applicable to the
particular receipts involved. If the test-check reveals a defect in such rules, the
advisability of an amendment should be brought to notice.
1.5 In order to discharge these functions effectively the Auditor must be thoroughly
conversant with the processes and procedures, relating to the levy and collection
of taxes and the laws and the rules governing such processes and procedures.
1.6 Audit does not consider it the main part of its duties to review the judgement
exercised or the decision taken in individual cases by Officers, entrusted with
these duties, but it must be recognized that an examination of such cases may be
an important factor, in judging the effectiveness of assessment procedure, where,
for example, the information received in any individual case is insufficient to
enable audit to see how the requirement of Law has been complied with, Audit

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may consider it its duty to ask for further information to enable it to form the
judgement rather than towards detection of individual errors that audit enquiries
should be directed. The detection of individual errors is an incident rather than
the object of Audit.
1.7 Audit will have access to the relevant records and papers of the Revenue
Department, when dealing with general questions or examining individual cases
in their effect on any particular or general question. But they should observe
secrecy in the matter relating to audit.
1.8 Audit of internal contorls
Ordinarily, Audit will see that the internal procedures adequately secure correct
and regular accounting of demands, collection and refunds, that no amounts due to
Government remain outstanding in its books without sufficient reason and that the claim
are purused with due diligence and are not abandoned or reduced except with adequate
justification and with proper authority.
The most important function of Audit in relation to Land Revenue assessments
and refunds is to satisfy itself, by such test checks as it may consider necessary, that the
internal procedures adequately provide for and actually ensure :
i) the collection and utilisation of data necessary for the computation of the demand
or refund under law;
ii) that the computation and realisation of various taxes, fees, rents, royalty, etc. are
in accordance with the applicable tax laws.
iii) the prompt raising of demands on tax payers in the manner required by law;
iv) the regular accounting of demands, collection and refunds;
v) the correct accounting and allocation of collections and their credit to the
Consolidated Fund;
vi) that the relevant and requisite records are being maintained properly;
vii) that proper arrangements are in place to safeguard against negligence or omission
to levy or collect taxes or to authorise refunds;
viii) that adequate control and monitoring mechanisms have been devised to prevent
loss or leakage of revenue.
ix) that there has not been any loss or leakage of revenue on account of lacunae or
loopholes in the rules framed for the purpose or on account of avoidable delays in
the issue of the necessary notifications and orders.
x) that the machinery for detection of cases of evasion is adequate;

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xi) that double refunds, fraudulent or forged refund orders or other losses of revenue
through fraud, default or errors are promptly brought to light and investigated;
xii) that the demands of revenue are pursued with due diligence and are not
abandoned or reduced except with adequate justification and proper authority;
xiii) that cases pending in courts of law or before appellate authorities have been
pursued adequately and appeals, wherever justified or considered necessary, have
been field within the period of limitation; and
xiv) that the estimates of revenue have been realized at the end of the financial year.
xv) that penalty or fine recoverable from any person for delayed payments of land
revenue or unauthorised occupation/diversion or encroachment of land is properly
calculated in advance with the laws and there is no omission to levy or collect the
penalty/fine and in case where levy of penalty is discration any whether such levy
was considered by the Competant Revenue Authority. In the later case, the
quantum of penalty imposed would be outside the preview of audit.
Note :- In case of shortfall in the realization of the estimates, Audit should ascertain if
this was attributable to negligence in collection or whether the original estimates
themselves were erroneous or unreliable.

1.9 In the subsequent chapters of this manual, the basic provisions of Law and the
rules governing the assessment and collection of land revenue are set out. Being
only a summary, this manual should in no sense, be regarded as a substitute for
the Acts themselves and, therefore, it should be treated merely as a preliminary
step to enable the Audit to grasp the essentials of the implementation of Land
Revenue Code and Laws made thereunder. For a further and comprehensive
study he should refer to the provisions of the Acts and rules and the case laws on
the subject.
1.10 The audit of Land Revenue Receipts and refunds remains subject to the general
principles governing the audit of receipts as laid down in Chapter 4 of section II
of the Comptroller and Auditor General’s Manual of Standing Orders (Technical)
Vol. I. This manual supplements these provisions, specifically in regard to Land
Revenue Receipts in some detail.
1.11 The most important function of audit in regard to revenue receipts and refunds is
to see that adequate regulations and procedure have been framed by the Revenue
Department to secure an effective check on assessment, collection, etc. and to

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satisfy itself by adequate test-check that such regulations and procedures are
actually being observed. Audit should also make such examination, as it thinks
fit, in regard to the correctness of the sums brought to account. In the audit of
receipts, the general is more important than the particular.
1.12 It is primarily the responsibility of the departmental authorities to see that all
revenues or other amounts due to Government, which have to be brought to
account, are correctly and promptly assessed, realized and credited to Government
account During the audit of receipts, it should, however, be seen that all receipts
which have entered the books of a department, are correctly calculated and are, in
fact, credited to Government account in time. It should be seen that the internal
procedure adequately secures correct and regular account of demands, collection
and refunds and no amounts, due to Government are left outstanding on its books
without sufficient reasons and that the executive have not granted unjustified or
unauthorized remissions.

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PART - I
CHAPTER – 2
HISTORICAL AND LEGISLATIVE BACKGROUND

2.1.1 By virtue of the powers, given to the State Legislature under Article 246 (3) of the
Constitution of India, read with entry 18 of the list II of the Seventh Schedule
thereto, the State Government is empowered to levy tax, commonly known as
Land Revenue, which includes, premium, rent, lease money, quit-rent, judi, cess,
etc., on any land, wherever situate. Consequent upon passing of Comptroller and
Auditor General’s (Duties, Powers and Conditions of Service) Act 1971, audit of
receipts has been made a statutory function. Accordingly, regular audit of Land
revenue receipts was taken up from July, 1973.
th
2.2:1 Till 15 August 1967, the three different regions of the State were governed by
the land revenue laws prevailing in these three regions of the respective State (prior to the
Reorganization of State) that is to say –

i) Erstwhile Bombay State :

A) The Bombay Land Revenue Code, 1879.

B) The Bombay City Land Revenue Act, 1876.
ii) Vidarbha areas of erstwhile Madhya Pradesh
a) The Berar Land Revenue Code, 1928 (in the district of Amravati, Akola,
Buldhana and Yeotmal upto 1/10/55).
b) The Central provinces Land Revenue Act, 1919 (in the districts of Nagpur,
Wardha Bhandara and Chandrapur upto 1/10/55).
c) The Madhya Pradesh Land Revenue Code, 1954 came into force in all the
st
districts of the Vidarbha Region on the 1 October, 1955.
iii) Marathwada region of erstwhile Huyderabad State :
(a) The Hyderabad Land Revenue Act, 1317 F.
2.2.2 Section 336 of the Maharashtra Land Revenue Code, 1966 (repealed) the laws
stated therein (which includes the above noted laws also) but at the same time saved the
operation of anything done or any action taken (under the laws so repealed) including any
rules, assessment and various other matters enumerated in the third proviso to that section

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by providing that they shall continue to be in force in so far as they are not inconsistent
with the provisions of the Maharashtra Land Revenue Code unless and until superseded
by anything done or action taken under the M.L.R. Code.

2.2.3 : All the revenue matters such as non- agricultural assessment, standard rate of
NAA, grant of leases, fixation of lease rent, premium, term of settlement, guarantee
period etc. decided or finalized before (1967) (date of commencement of the MLR Code)
would continue to remain in force for the whole period for which it was fixed and
thereafter until it is altered under the provisions of the MLR Code.

2.2.4 : With the introduction of the Maharashtra Land Revenue Code, 1966 with effect
th
from 15 August 1967, a uniform land revenue law is applied in whole of the State of
Maharashtra. Accordingly land revenue assessment, collection, suspension, remission as
well as revenue accounting systems and procedure in revenue offices at all levels and
other related matters are regulated as per the provisions of the Maharashtra Land
Revenue Code, rules framed and statutory orders and notifications issued thereunder.

2.2.5 : Salient features and important provisions regulating the non-agricultural

assessment, prevalent in the three regions of the Maharashtra State, prior to introduction
of MLR Code 1966, are given in Appendix-I (A) to (C).

2.3 : Before dealing with the basic provisions of the laws and rules governing the
assessment and collection of Land Revenue Receipts, it would be necessary to review
briefly the historical and legislative background of the main enactment, which regulate
the substantive and procedural laws, relating to the Land Revenue Receipts in the State of
Maharashtra.

2.4 : In Western Maharashtra and Marathwada regions, the land system was
predominantly rayatwari. With the passing of the various Tenure Abolition of Jagir
Regulation 1949, and the Hyderabad Abolition of Inam Act, 1954, the lands in both these
regions became (barring a few exceptions) rayatwari throughout. In Vidarbha, however,
till 1950, the land system was zamindari and proprietary. With the enactment of the
Madhya Pradesh Abolition of proprietary Rights (Estates Mahals and Alienated Lands)

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Act 1950, the Proprietary Rights of the Zamindars were abolished with the result that the
land system has now become rayatwari throughout the State.

2.5 : By enacting various Inam Abolition Acts, all Inams, except Devastan Inams, were
st
abolished from 1 August 1955 . By virtue of this, all inami lands ceased to be held as
st
revenue free land, on or after 1 August 1955 and as such became liable to be assessed to
land revenue according to its use, such as agriculture, residential, industrial, commercial,
etc.

2.6 : (I) Consequent upon enactment of Maharashtra Zilla Parishad and Panchayat
Samitis Act, 1961, local cess at minimum rate of Rs. 0.20 paise per rupee of Land
Revenue was introduced from the year 1962-63 both in urban and non-urban areas. Such
st
cess, has however, been discontinued from 1 April, 1974 in respect of areas, falling
under the jurisdiction of Municipalities, Municipal Councils, Cantonments and other
notified areas.
Under section 127 of the Bombay village Panchayat Act, 1958, V.P. Cess at the rate of
100 paise on every rupee of the sum payable to Government. As ordinary land revenue in
the areas of village Panchayats is also leviable with effect from 1962.

2.7 : The Government. Of Maharashtra in order to realize more revenue from bigger
tenants, introduced various cesses and surcharges, in the form of Education cess,
Increased Land Revenue Cess, Employment Guarantee cess etc., the details of which
have been discussed in the subsequent chapters.

2.8 : Levy and collection of Land Revenue are governed by the provisions of the Land
Revenue Act and the rules made thereunder by the State Government. All lands to
whatever purpose applied and where ever situated are liable to payment of revenues or
rent to Government. Except such land as has been wholly exempted from such liability
by special grant of Sanads, or contracts with the State Government. Or by the provisions
of any law for the time being in force.

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PART – I
CHAPTER – 3
3.1 Organizational set up of Revenue Department :

For the purpose of revenue and general administration of the State of Maharashtra
the State has been divided into 35 districts including city of Bombay. The city of
Bombay is treated as a separate district, to which special provisions contained in Chapter
XIV of the Maharashtra Land Revenue Code, (Sections 260 to 307), 1966 apply. Each
district has been sub-divided into one or more sub divisions and each sub-division into
one or more sub divisions and each sub-division into one or more tahsils. There are 360
tahsils in the State. A list showing the names of the districts and the tahsils in the State is
given in Appendix 3 of the Manual.

3.2 : The control of all non-judicial matters connected with Land Revenue in the State
is vested in the State Government (acting through Revenue and Forests Department) and
the control of all judicial matters vests with Maharashtra Revenue Tribunal, Bombay,
except any such matter which is sub-judice.

3.3 : The Revenue work is broadly divided into two branches i.e. (I) Administrative
and (ii) Survey. The departmental set up is briefly shown below :-

Revenue and Forests :

Jurisdiction Head of Administrative wing Head of survey wing
1) Division i) Commissioner i) Settlement Commissioner
ii) Additional Commissioner ii) Director of land records
iii) Assistant Commissioner iii) Deputy Director of Land
Records
2) District i) Collector i) Superintendent of land records
ii) Additional Collector ii) District Inspector of Land
records
iii) Assistant/Dy. Collector or iii) Assistant Dsitt. Inspector of
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Sub-Divisional Officer, land records.

3) Taluka i) Tahsildar i) Survey officers
ii) Addl. Tahsildar ii) Survey Tahsildars
iii) Naib Tahsildar iii) Taluka Inspector of Land
Records
4) Village Revenue Inspectors or Group or
circle officers of
Patwari/Talathis villages and
Kotwal.

3.4 Administrative wing :

(I) A commissioner of a division is the chief controlling authority in all matters
connected with the land revenue in his division, subject to superintendence direction and
control of the State Government in Revenue and Forests Department. For each division a
commissioner is appointed by the State Government. which may appoint in a division, an
Additional Commissioner or Assistant Commissioner as may be expedient to assist the
Commissioner of the Division.

ii) The State Government. have also to appoint a collector for each district (including
the city of Bombay) and a Tahsildar for each taluka. A Collector of a district and
a Tahsildar of a Taluka, so appointed will be in charge of the overall revenue
administration of the concerned district and Taluka respectively.
iii) The State Government. may appoint one or more Additional Collectors in each
district and so many Assistant Collectors, to assist the revenue officers as it may
be deemed expedient. Similarly for assisting Tahsildars for a Taluka one or more
additional Tahsildars, as may be necessary may also be appointed.
(iv) Subject to the general orders of the State Government. the Collector may
place any assistant or Deputy Collector in charge of one or more sub-divisions of a
district. The Collector may also appoint in each district, as many persons as he may think
fit to be, circle officers and circle inspectors to be in charge of a circle, and one Talathi or
more for a ‘saza’- a group of villages and village servants for each village or groups of
villages.

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3.5 Survey wing

The State Government may appoint such officers, designated as “settlement
Commissioner”, “Director of Land Records”, “Deputy Directors of Land
Records”, “Superintendents of Land-Records”, “Settlement Officer”, “Survey
Tahsildars”, “District Inspector o Land Records”, etc. for the purpose of
“Revenue Survey”, ‘Assessment and Settlement of Land Revenue of Agricultural
Lands’, ‘Survey of Lands within the sites of villages, Towns and Cities’,
determination and fixation of village boundaries, field boundaries, and for
maintenance of Records of Rights. etc.
3.6 The Settlement Commissioner is in charge of all matters relating to
settlement, throughout the State and in respect thereof he exercises such powers
and discharges such duties as are conferred and imposed on him, under the
Maharashtra Land Revenue Code, 1966. The Settlement Officers, Assistant
Settlement Officers, the survey Tahsildars, the District Inspector of Land Records
and other Survey staff work under the control of Settlement Commissioner.

3.7 The land Revenue Act of the State Government. sets out the pattern of
organization for assessment and collection of land revenue.

The land revenue Act is administered at the district level by the Collector of the
district. He is assisted by a sub-divisional officer at the sub-divisional level. The
main pivot of the machinery for assessment and collection of Land Revenue,
however is the Tahsildar/circle officer who is in charge of a tahsil/circle and is
responsible for assessment and collection of land revenue for his taluka/circle.
For the purpose of collection of land revenue from holders and tenants of the
lands, the Tahsildar is assisted by ‘Patwari’ (or Talathi) each of whom is in charge
of a number of villages. The latter collects the land revenue or rent due and
remits the collection periodically into the treasury under intimation to the circle
officer/Tahsildar.

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P A R T – II
CHAPTER - 4

Definition and scope of Land Revenue

4.1.1 The term ‘Land Revenue’ is defined under section 2(19) of the M.L.R.
Code 1966, as “all sums and payments, in money received or legally
claimable by or on behalf of the State Government, from any person on
account of any land or interest in or right exercisable over land, held by or
vested in him, under whatever designation. Such sum may be payable and
any cess or rate, authorized by the State Government. under the provisions
of any law for the time being in force, and includes premium rent, lease
money, quit rent, judi payable by an inamdar or any other payment,
provided under any Act, Rule, contract or deed on account of Land. The
word ‘Land’ not only means the surface of the ground but also everything
on or over or under it. Thus, it includes the upper soil and sub-soil,
whether it may be gravel, sand or clay. Under section 2(16) of the Code,
‘Land’ includes benefits to arise out of land, and things attached to earth
or permanently fastened to anything, attached to earth and also shares in,
or charges on the revenue or rent of village or other defined portions of
territory. The following are the classes of persons holding land from the
State.

a) Occupants - Class I
b) Occupants - Class II
c) Government lessees.

4.1.2 Occupants – Class I are those who

a) hold unalienated land in perpetuity and without any restrictions on the right to
transfer.
b) immediately before the commencement of MLR Code 1966 hold land in full
occupancy or Bhumiswami rights without any restriction on the right to transfer under the
provisions of law prior to commencement of MLR Code and

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c) Notwithstanding any notification of order issued under Section 150 of the

M.P.L.R. Code 1954, are holders of Land in Bhumidhari rights in any local areas in
Vidarbha and are permitted hereafter..

4.1.3 Occupants - Class II consist of persons who-

a) hold unalienated land in perpetuity subject to restrictions on the right to transfer.

b) Immediately before the commencement of the MLR Code 1966 hold-

i) land in Vidarbha in Bhimiswami rights with restrictions on right to transfer or in

Bhumidari rights under M.P.L.R. Code 1954, and
ii) elsewhere hold land in occupancy rights with restrictions on the right to transfer.

c) before the commencement of this Code 1966 have been granted rights in
unalienated land under leases which entitle them to hold the land in perpetuity or
for a period not less than 50 years with option to renew on fixed rent.

4.2 Government holds title over all lands, public roads, paths, bridges, ditches, dikes
and fences, the bed of sea, and of harbours and creeks below the high watermarks, and
rivers, streams, nallas, lakes and tanks and all canals and water courses, etc. which are not
property of others. The idea underlying taxation by the State on the land is that a land
yields a definite profit and definite return and the state as a supreme land lord is entitled
to a definite percentage of that profit.

4.3 The power of State to assess all lands also involves another power of alienating
the right to receive assessment in favour of individuals and it is to the use of this power,
the words ‘alienated lands’ ‘inams and Jagirdars’ etc. are used, wherever Government
relinquishes its right to receive any assessment for such land.

‘Alienated’ means transferred in so far as the rights of the State Government to payment
of rent on land revenue are concerned, wholly or partially, to the ownership of any
person. (Section 2(2) of Maharashtra Land Revenue Code 1966).

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4.4 Under section 2(21) of the Maharashtra Land Revenue Code 1966, revenue
derived from the lands, used for non-agricultural purpose, such as residential, industrial,
commercial, is also Land revenue, falling under the definition of the Section 2(19) of the
Code. The mere circumstances that non-agricultural assessment has not been previously
levied in respect of lands, which were converted to non-agricultural purpose, with
permission of Government on payment of fine does not imply any limitation on the
prerogative of the State to assess the lands to land revenue and not to revise the
assessment periodically, according to law.

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CHAPTER–5
DEFINITIONS WITH IMPORTANT JUDICIAL DECISIONS
EXPLAINING THE MEANING OF VARIOUS TERMS USED IN
VARIOUS ACTS AND RULES

In this Code, unless the context otherwise requires-

(1): “agricultural year’ means the year commencing on such date as the State
Government may, by notification in the Official Gazette, appoint;

st
Note : The State Government has appointed the 1 day of April to be the date of
commencement of agricultural year by Government Notification, Revenue and
th
Forests Department, No. UNF-1367-R dated the 11 August, 1967, (vide
Appendix- 2)

(2) “alienated” ,means transferred in so far as the rights of the State

Government to payment of rent or land revenue are concerned, wholly or
partially, to the ownership of any person;
1) Alienation and Alienated village :
Held that the land was not an “alienated village” for which it is not necessary that
ownership of Government with respect to land revenue must be transferred. In
this particular case the Kowl was only agriculture and as the grantee was to
consider himself a farmer, the village came under the operation of the code 35
Bom462 =12 Ind cas 369= 13 Bom LR 883.

2) Alienated Village- Survey-Settlement-Holders of Land-

Though the grant to the plaintiff was of the entire property in the soil, the lands in
question were still “alienated” within the meaning of section 3(20) of the Bombay
Land Revenue Code ; if the other requirements of the section are satisfied,
defendants (tenants) were entitled to the right of occupants in unalienated villages
by virtues of section 217 of the Code: 43 Bom 77=47 Ind Cas 745=20 Bom LR
887.

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3) Sections 3(20) and 65- Alienation-Grant of a portion of the village with all rights
of Government and permanent lease of the rest Grantee, if entitled to enhanced non-
agricultural assessment- Ownership of foreshore :-

Held, that the grant was of all the revenues derivable from the village, except
abkari, and not merely the agricultural revenue and therefore the grant was of the
village itself, and consequently, the plaintiff was entitled to the royalty claimed by
him.
Held, also, that the grantee was entitled to erect any structure without the payment
of extra assessment to the Government irrespective of the terms of section 65 of
the Bombay Land Revenue Code and the Government was not entitled to levy any
non-agricultural assessment on these buildings.

Held, further, that though the presumption is that the Crown is entitled to
the foreshore unless it can be shown from any particular grant that the foreshore is
conveyed under it, that presumption was satisfactorily rebutted in this case by the
terms of the grant : AIR 1934 Bom 434=36 Bom LR 761=154 Ind Cas 278.
(Authority :- M.L Jindal)
3. “boundary mark” means any erection, whether of earth, stone or other material,
and also any hedge, unploughed ridge, or strip of ground, or other object whether natural
or artificial, set up, employed, or specified by a survey officer or revenue officer having
authority in that behalf, in order to designate the boundary of any division of land;
4. “building” means any structure, not being a farm building;
5. “building site” means a portion of land held for building purposes, whether any
building be actually erected thereupon or not, and includes the open ground or courtyard
enclosed by, or appurtenant to, any building erected thereupon;

1) Holder of Varkas land- A person who wants to claim the benefit of section 217 of
the Land Revenue Code must show that he was a “holder” within the meaning of
section 3 of the Code at the date of the Settlement. Mere user by rice lands
tenants of adjoining waste land with the leave and permission of the Inamdar does
not make them holders of Varkas land : 36 Bom 315=14 Ind Cas 473=14 Bom
LR 124.

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2) Tenant under an occupant also included in the term “Holder”.- The plaintiff (as
Inamdar) had the royal share of revenue of a certain village, in which the
defendant was a permanent tenant of certain land. At the desire of the plaintiff,
the survey settlement was introduced into the village, when the plaintiff’s name
was entered as Khatedar or registered occupant of the land. The plaintiff next
sought to recover enhancement rent from the defendant. The latter in contesting
the claim relied on, among other things, section 217 of the Bombay Land
Revenue Code, 1879, and contended that he was liable to pay only the
Government rate of assessment levied on the land. This contention was
disallowed on the ground that the defendant was not a register occupant of the
land. On appeal, Held, that section 217 of the Bombay Land Revenue Code,
1879, was not restricted in its application to registered occupants only; it invested
“the holders of all lands” in alienated villages with the same rights and imposed
upon them the same Responsibilities in respect of the lands in their occupation
that occupants in unalienated villages had. The term

“Holder” as defined in section 3, clause (11) of the Code was wide enough to include
even a tenant who had entered into possession under an occupant : (1910) 34 Bom
686=12 Bom LR 707=7 Ind Cas 949.

6. “certified copy” of “certified extract” means a copy or extract, as the case may be,
certified in the manner prescribed by section 76 of the Indian Evidence Act, 1872;
7. “chavdi” means the place ordinarily used by a village officer for the transaction of
village business;
8. “estate” means any interest in lands and the aggregate of such interests vested in a
person or aggregate of persons capable of holding the same;
9. “farm building” means a structure erected on land assessed or held for the purpose
of agriculture for all or any of the following purposes connected with such land or any
other land belonging to or cultivated by the holder thereof namely :

a) for the storage of agricultural implements, manure or fodder,

b) for the storage of agricultural produce,
c) for sheltering cattle,
d) for residence of members of the family, servants or tenants of the holder, or

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e) for any other purpose which is an integral part of his cultivating arrangement;

10.“gaothan” or “village site” means the land included within the site of a village,
town or city as determined by section 122;
11.“Government lessee” means a person holding land from Government under a
lease as provided by section 38;
12.“to hold land” or “to be a land holder or holder of land” means to be lawfully
in possession of land, whether such possession is actual or not;
13.“holding” means a portion of land held by a holder;
14.“improvement” in relation to a holding, means any work which adds materially
to the value of the holding which is suitable thereto and consistent with the purpose for
which it is held and which, if not executed on the holding, is either executed directly for
its benefit or is, after execution, made directly beneficial to it; and; subject to the
foregoing provisions, includes;

a) the construction of tanks, wells, water channels, embankments and other works
for storage, supply or distribution of water for agricultural purposes;
b) the construction of works for the drainage of land or for the protection of land
from floods, or from erosion or other damage from water;
c) the planting of trees and the reclaiming, clearing, enclosing, leveling or terracing
of land;
d) the erection of buildings on or in the vicinity of the holding, elsewhere than in the
gaothan required for the convenient or profitable use or occupation of the holding;
and
e) the renewal or reconstruction of any of the foregoing works, or alterations therein
or additions thereto; but does not include-

i) temporary wells and such water-channels, embankments, leveling, enclosures or

other works, or petty alterations in or repairs to such works, as are commonly
made by cultivators of the locality in the ordinary course of agriculture; or
ii) any work which substantially diminishes the value of any land wherever situated,
in the occupation of any other person, whether as occupant or tenant;

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Explanation- A work which benefits several holdings may be deemed to be an

improvement with respect to each of such holdings;

15. “joint holders” or “joint occupants” means holders or occupants who hold land as co-
sharers, whether as co-sharers in a family undivided according to Hindu law or otherwise,
and whose shares are not divided by metes and bounds; and where land is held by joint
holders or joint occupants, “holder” or “occupant”, as the case may be, means all the joint
holders or joint occupants;
16. “land” includes benefits to arise out of land, and things attached to the earth,
or permanently fastened to anything attached to the earth, and also shares in, or charges
on the revenue or rent of villages, or other defined portions of territory;
17.“landlord” means a lessor;
18.“land records” means records maintained under the provisions of, or for the
purposes of this code and includes a copy of maps and plans of a final town planning
scheme, improvement scheme or a scheme of consolidation of holdings which has come
into force in any area under any law in force in ;the State and forwarded to any revenue
or survey officer under such law or otherwise;
19.“land revenue” means all sums and payments, in money received or legally
claimable by or on behalf of the State Government from any person on account of any
land or interest in or right exercisable over land held by or vested in him, under whatever
designation such sum may be payable and any cess or rate authorized by the State
Government under the

provisions of any law for the time being in force; and includes rent, lease money,
quit rent, judi payable by an inamdar or any other payment provided under any Act, rule,
contract or deed on account of any land’

20 “legal practitioner” has the meaing assigned to it in the Advocates Act, 1961;
21.“non-agricultural assessment” means the assessment fixed on any land under
the provisions of this Code or rules thereunder with reference to the use of the land for a
non-agricultural purpose;
22.“occupancy” means a portion of land held by an occupant;
23.“occupant” means a holder in actual possession of unalienated land, other than
a tenant or Government lessee; provided that, where a holder in actual possession is a

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tenant, the land holder or the superior landlord, as the case may be, shall be deemed to be
the occupant;
24.“occupation” means possession;
25.“to occupy land” means to possess or to take possession of land;
26.“pardi land” means a cultivated land appertaining to houses within a village
site;
27.“population” in relation to any area means population as ascertained at the last
preceding census of which the relevant figures have been published;
28.“prescribed” means prescribed by rules made by the State Government under
this code;
29.“recognized agent” means a person authorized in writing by any party to a
proceeding under this Code to make appearances and applications and to do other acts on
his behalf in ;such proceedings;
30“relevant tenancy law” means-

a) in the Bombay area of the State of Maharashtra, the Bombay Tenancy and
Agricultural Lands Act, 1948;
b) in the Hyderabad area of the State of Maharashtra, the Hyderabad Tenancy and
Agricultural Lands Act, 1950 and
c) in the Vidarbha region of the State of Maharashtra, the Bombay Tenancy and
Agricultural Lands (Vidarbha Region) Conversion Tax, 1958.

31.“revenue officer” means every officer of any rank whatsoever appointed under
any of the provisions of this Code, and employed in or about the business of the land
revenue or of the surveys, assessment accounts, or records connected therewith;
32.“revenue year” means the year commencing on such date as the State
Government may, by notification in the Official Gazette, appoint;

st
Note :- The State Government has appointed the 1 day of August to be the date of
commencement of Revenue Year by Government Notification, Revenue and Forests
th
Department, No. UNF-1367 (a)-R, dated the 11 August 1967 (vide Appendix 3).

33.“saza” means a group of villages in taluka which is constituted a saza under

section 4;

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34.“Sub-Divisional Officer” means an Assistant or Deputy Collector who is

placed in charge of one or more sub-divisions of a district;
35.“sub-division of a survey number” means a portion of a survey number of
which ;the area and assessment are separately entered in the land records under an
indicative number subordinate to that of the survey number of which it is a portion;

36“survey mark” means, for the purposes of this Code, a mark erected for
purposes of cadastral survey of land;
37.“survey number” means a portion of land of which the area and assessment are
separately entered under an indicative number in the land records and includes
i) plots reconstituted under a final town planning scheme, improvement scheme or a
scheme of consolidation of holding which has come into force in any area under any law;
and
ii) in the districts of Nagpur, Wardha, Chandrapur and Bhandara any portion of land
entered in the land records under any indicative number known as the khasra
number;

38. “superior holder” except in chapter XIV MLR code means a land-holder entitled
to receive rent or land revenue from other land holders (called “inferior holders”) whether
he is accountable or not for such rent or land revenue, or any part thereof, to the State
Government; provided that, where land has been granted free of rent or land revenue,
subject to the rights of resumption in certain specified contingencies by a holder of
alienated land whose name is authorisedly entered as such in the land records, such
holder shall, with reference to the grantee, be deemed to be the superior holder of land so
granted by him, and the grantee shall, with reference to the grantor, be deemed to be the
inferior holder of such land, and for the purposes of sections 147, 151 and 152 of the
Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961, shall notwithstanding
anything herein after contained in the definition of the word “tenant”, be deemed to be
the tenant of such grantor;
39.“survey officer” means an officer appointed under, or in the manner provided
by, section 8,
40.“tenant” means a lessee, whether holding under an instrument, or under an oral
agreement, and includes a mortgagee of a tenant’s rights with possession; but does not
include a lessee holding directly under the State Government;

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41.“unoccupied land” means the land in a village other than the land held by an
occupant, a tenant or a Government lessee;
42. “urban area” means the area for the time being included within the limits of
any municipal corporation, municipality constituted under any law for the time being in
force or of any village or group of villages, which may be notified by the State Govt as
urban area, regard being made to the density of population and of buildings in the area
and the expression “non-urban area” shall be construed, accordingly;
43.“village” includes a town or city and all the land belonging to a village, town
or city;
44.“wada land” means an open land in village site used for tethering cattle or
storing crops or fodder, manure or other similar things.

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P A R T – II
CHAPTER ; 6
AGRICULTURAL LAND REVENUE : PROCEDURE FOR SURVEY AND
SETTLEMENT TOGETHER WITH ASSESSMENT/LEVY AND COLLECTION
OF LAND REVENUE:

6.1 Agricultural lands are subject to survey and settlement, in accordance with the
provisions in Chapter VI of Maharashtra Land Revenue Code, 1966, (Section 90
to 107) and rules made thereunder. Procedure of survey and settlement of land
revenue is briefly summarised below :

The area to be settled is first divided into zones, comprising a taluka or group of talukas
or portions thereof, which are contigeous and homogeneous in respect of (I) physical
configuration (ii) climate and rainfall, (iii) principal crops grown in the area and (iv) soil
characteristics (vide clause (h) of section 90 of Maharashtra Land Revenue Code).
Moreover other factors such as markets, communications, standard of husbandry,
population, supply of labour, agricultural resources wages, etc. mentioned in clause (b)
of sub-section (2) of section 94 of MLR code are to be taken into consideration where
necessary. The settlement officer, after ascertaining the average yield of crops, in the
same tract of land, has to arrive at the standard rate of assessment, with reference to any
particular class of land. However, the standard rate thus arrived, should not exceed one
twenty fifth of the average yield of crops per acre of that class of lands of sixteen annas
classification.

6.2 (a) The fees recoverable from Land holders for making sub-division of
agricultural lands in view of acquisition of rights in land or for any other reason
are fixed so as to cover the entire cost of measuring, necessary and mapping of
sub-divisions. The term ”entire cost” includes besides expenditure on pay and
allowances of staff and contingencies, amounts on account of leave salary and
pension contributions and supervision charges.

(b) Delay in conducting the survey, follow up action after survey, whether after
incurring expenditure on survey, or not, results in following consequences :

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i) non-regularization of encroachments,
ii) non-raising demand and collection,
iii) Incorrect recovery of assessment levy and collection, if any, already levied,
iv) Correct finalization of assessments, levy demand, and collection.
v) Increase in “entire cost”,
vi) Non-maintenance of correct records of title deeds or records of rights.

6.3 The rules regarding classification of Lands from the point of view of
levying land revenue assessments are contained in Maharashtra Land Revenue
(Assessment and Settlement of Land Revenue Agricultural Lands) Rules, 1970.
The land in respect of which the settlement is directed to be made is divided into
zones and groups after taking into account the physical continuation of the zone,
climate of husbandry, population and supply of labour, agricultural resources,
wages and ordinary expenses of cultivating principal crops including the value of
labor in cultivating the land in terms of wages, the average yield is determined.
Then the Settlement Officer works out the average classification value separately
for each class of land from the survey records. Classification value means the
relative valuation of lands as recorded in the survey records having regard to its
soil, situation, water and other advantages. The average yield determined by him
as above will be considered to be the yield of the land of the classification value
equal to the average classification so worked out. He shall then estimate the yield
for land of 16 annas classification of each class of land by Rule of 3 and work out
the value of the yield per hectare per each class of land at the settlement price and
fix the standard rate of assessment for each of class of land in each group in
accordance with the provisions of Section 90 of Maharashtra Land Revenue Code,
1966 (Rules 6 of the Maharashtra Land Revenue Assessment and Settlement of
Land Revenue Agricultural Lands, Rules, 1970).For instance, if the average yield
of crops per hectare of land is ‘X’ and the average classification value is ‘Y’ then
the yield for land of sixteen annas classification will be x./y – x 16. Once the
settlement i.e. the results of the operation conducted in a zone to determine the
land revenue assessment, in the light of provisions mentioned in para (I) above, is
fixed, it (the term of settlement) remains in force for a period of thirty years after
which it continues to remain in force until the commencement of the term of a

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fresh settlement, (vide provisions in section 93 of the Code). In the year in which
a settlement is introduced, the difference between the old and new assessment of
all lands, on which the latter is more than the former, is remitted and the revised
assessment is levied from the next following year.
6.4 Assessment to be imposed on individual survey number is then determined in
accordance with the relative classification and value of the land and the
assessment of the amount to be paid as land revenue, under section 68 of the
Maharashtra Land Revenue Code, on all agricultural lands is made with the
person who is primarily responsible to the State Government for the same
(Section 69).
6.5 Under section 168 of the Maharashtra Land Revenue Code the occupant (or the
lessee in respect of unalienated land and the superior holder or tenant in respect of
alienated land) is liable to pay land revenue to Government, under the relevant
provisions of the Code, in respect of lands, held by such occupants (or tenants) in
accordance with the assessment settled on such lands.

Penalty for defaulter of Land Revenue

6.6 If any installment of Land revenue or any part thereof is not paid within one
month after the prescribed date, the Collector may in case of a wilful defaulter
impose penalty not exceeding twenty five per cent of the amount not so paid (
section 174 of the Code) provided that no such penalty shall be imposed for non
payment of any installment the payment of which is suspended by the order of the
State Govt.) in respect of the period during which the payment remained
suspended.
Recovery of the cost of issue of Demand notices to the defaulters

6.

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