Concept of land revenue

• The concept of land Revenue is nothing but an extension of the

concept that the King is the Owner of the property
• From the Moghal era the King, Ruler, Sovereign was the owner
of the Land and the people, common man was the Occupant
• Citizenry used to cultivate the land and against such right of
occupancy, the citizenry used to give crop share to the King.
• Sher Shah was the first King to convert crop share into money
value
• In 1540 land was measured for the first time for the purpose of
imposing land Revenue
Concept of land revenue
• Reference of Land revenue in Manusmruti, Arthashasatra by Chanakya
• In Maharashtra Malik Ambar, who was the Pradhan of Nijamshah established Land
Revenue system
• King appointed Jamindar, Jagirs who used to collect revenue for the King
• During British Rule the main source of Income for the East India Company was the
Land Revenue
• Regulation of 1 of 1799, 1 of 1808 maintained register of Title Deeds
• Regulation 38 of 1827 was the first enactment to deal with Land Revenue in Bombay
• The Bombay Land Revenue Code 1879 comprehensive enactment regulating Bombay
Province (present northen and western Maharashtra, Kokan, Gujrat, Bijapur, Hubli,
Karwar etc), which is still applicable in Gujrat as Gujrat Land Revenue Code 1879
• Terms such as Occupant, Holder, survey were defined in the Act
Concept of land revenue
• Hierarchy such as Collector, Additional/deputy Collector was made
which is still in practice
• Understanding terms such as Class 1, Class 2,
• Class 1: where the person holding the land can transfer the land
without restriction
• Class 2: holder of the land may transfer the land subject to restrictions
Sec. 3 Division of state into revenue areas
• State shall be divided into divisions which will consist of one or more districts
• In Maharashtra we have seven divisions
a. City of Bombay
b. Kokan
c. Pune
d. Nashik
e. Amravati
f. Nagpur
g. Aurangabad

• The divisional commissioner is the in charge of each division

• In each division there will be one or more Districts
• District collector will be in charge of Districts
• Each division consist of one or more Talukas
Sec. 3 Division of state into revenue areas

• Villages are grouped into Sazas for the purpose of better

administration and for maintaining records
• Talathi is in charge of sazas
• The State government has the right to add division/district/ talukas in
the state
Revenue officers
• Commissioner for each Division to look into revenue matters
• Collector for each district who shall be in charge of Revenue
administration
• Tahsildar for each Taluka who shall be enthrusted with local revenue
administration
OBJECTIVE OF LAND REVENUE
ADMINISTRATION
• To assess and collect of land revenue, collection of local cess on
behalf of local bodies, and all other dues recoverable as arrears of
land revenue,
• To Prepare and maintain "Land Records" related to revenue accounts,
• Measuring Land
Sec. 20 Title of state in all lands, public roads etc.

1. Public roads, lanes, paths, river, nalas, lakes, tanks, bridges, canal,
bed of the see which are not the property of the person legally
capable of holding property, shall be the property of State
Government. The Collector has been conferred with the power to
dispose of Govt. land subject to orders of the Commissioner
2. If any person has claimed any right in or over any property then in
such case the collector shall inquire in the matter and shall pass
order deciding the claim.
• Krishna Vishnu Deshmukh V/s. Revenue Minister, State of
Maharashtra
Krishna Vishnu Deshmukh V/s. Revenue Minister, State of
Maharashtra

• the petitioners are claiming that their ancestors were the owners of
lands Survey Nos. 138 and 154 at village Nandgaon, Taluka Maval,
District Pune. It appears that the lands were allotted to forefathers of
the petitioners in the year 1885. Sometime in the year 1922, the
names of the ancestors of the petitioners were deleted and the suit
lands were shown as Government lands. However, it appears that no
notice was given to the ancestors of the petitioners. Being the
ancestral property, the petitioners continued to cultivate the said
lands and even in the year 1956, the ancestors of the petitioners
were shown as "Kabjedar" i.e. they were shown in possession. In the
year 1995, the petitioners came to know that though they were in
possession of the suit lands being their ancestral property, however
the record indicated that the lands were shown as Government
lands.
• The Hon'ble Revenue Minister directed respondent No. 2, by a
communication dated 24th January, 1996 directing the Collector
respondent No. 2 herein to inquire into the matter in accordance with the
provisions of Section 20(2) of the Maharashtra Land Revenue Code, 1966 
• Under the aforesaid facts and circumstances of the case, the impugned
order dated 17th October, 2002 stands quashed and set aside and the
matter is remanded back to the Hon'ble Revenue Minister-respondent No.
1 herein to enable him to pass an appropriate reasoned order after
hearing the petitioners and considering all the material and also the
provisions of Section 20(2) of the Maharashtra Land Revenue Code, 1966. 
Babasaheb Dagadu Bhurale v/s. state of
Maharashtra
• The petitioner has approached this Court to direct the respondent to
restore the lands Gat No. 133 and 136 at village Katpur, Tq. Paithan, Dist.
Aurangabad to the petitioner within three months for his cultivation.
• The petitioner was owner of the said lands. These lands were required by
the Govt. for the purposes of Jayakwadi project and, therefore, the
Collector, Aurangabad carried out a land acquisition proceeding and the
lands were acquired compulsorily under the said provisions and the
compensation as provided under the Land Acquisition Act was also paid.
• The acquisition proceedings were completed. However, these lands have
not been used for the said project and the lands are being utilized for
Open Jail located at Jayakwadi project.
• The petitioner, therefore, has approached this Court for return of the
said land in view of the Govt. Resolution No. LQN 3473/HI, dated
10.10.1973, issued by the Revenue and Forests Department. In clause (B)
of the said Govt. Resolution, it is provided that if, the acquired land found
surplus and/or unutilized, cannot be used for any public purpose within
the period of three years from the date of taking over possession thereof
immediately, the Department concerned should relinquish the land to
the Collector of the district concerned. The Collector of the district
concerned should then take steps for restoration of such lands to the
original owner, perpetual lessee or the tenant having security of tenure
under the various tenancy laws in force, on payment of market value.
• High Court Held:
• We have also noticed that this Govt. Resolution is contrary to the Maharashtra
Land Revenue Code 
• We make it clear again that after acquisition when the possession is taken by the
Govt. the land absolutely vests in the Government and all the rights of the person
who was holding the said land prior to the acquisition are extinguished and said
person has no right as against that property even though the Govt. may not have
used the said property for the said public purpose. The Govt. can utilize the said
property for any other public purpose and/or if the Govt. feels that the Govt.
does not want to keep the said land with it, it can dispose of the said property as
laid down under the Maharashtra Land Revenue (Disposal of Lands) Rules, 1971.
Thus, we find that there is no substance in the petition. It is hereby rejected. 
Sec. 25 Right to Trees in holding
• The right to all trees standing or growing on any occupied land shall
vest in the holder
• But the State Govt. shall have the right to prohibit the holder from
cutting the trees to prevent the erosion of soil.
Sec. 41 uses to which holder of land for
purposes of agriculture may put his land
1. The holder of any land is entitled to erect farm building, construct wells,
tanks or make any other improvements for better cultivation of the land.
 what is farm building? It Is defined under sec. 2 (9).
2. Before erection of any farm building or carrying out any work of renewal of,
reconstruction of, alterations in, or additions to any such farm building on
any land, which is situated
 within the limits of :
Municipal corporation of greater Bombay, Pune, Nagpur
The area within the 8 kilometers from the periphery of the limits of each of
these corporation
Within the limits of any other municipal corporation and the area within 5
kilometers from such Municipal corporation
‘A’ class municipal council
B and C class municipal councils
within the area covered by Regional plan, town planning scheme,
3. The holder shall apply in the prescribed form, to the Collector for permission to erect farm building
4. The Collector may grant permission to erect farm building taking into consideration the plinth area.
5. The collector shall not grant such permission:
if the area of the Agricultural holding on which such building is proposed to be erected is less than 0.4 Hectare
If the building consists of more than ground floor
6. Any land used for the erection of the farm building in contravention of this section then in that case it shall be deemed to have been used for non agricultural purpose and
the holder shall be liable for penalty
Sec. 42 permission for NA use
1. No land used for agriculture shall be used for any NA purpose, without prior
permission of the Collector.
2. No such permission is necessary for conversion of use from agricultural to NA
• For personal bonafide residential purpose in non- urban area
• For the micro enterprise
• For small commercial use like shop, flour mill, grocery shop, chili grinding
machine etc. operated in such premises in use for the personal bonafide
residential purpose and the area occupied shall not exceed 40 Sq. Mtr.
3. The permission shall be necessary in the area:
• Which fall within 8 Km from the periphery of the limits of the Pune, Nagpur and
Mumbai municipal Corporation
4. The person who uses such land/area for micro enterprise, for small commercial
purpose shall intimate to the Tahsildar of such change in use and the date on which
such change has commenced.
Sec 42 A No permission required in area
covered by Development plan
1. No prior permission from the Collector necessary if the land to be converted is a land held as
Class I
However the planning authority shall ascertain the class of the land, its occupancy or encumbrance
if any.
After ascertaining the same planning Authority shall grant development permission.
2. For conversion of use of any land held as occupant Class II, THE Occupant shall apply to the
Planning Authority
The Planning authority shall direct the Occupant to obtain NOC from the Collector for such change
The Collector after examining the documents, if permissible grant NOC on the payment of the
Nazrana
On receipt of the NOC the Planning Authority shall issue development permission
The Occupant shall inform the village officer in writing
If the occupant fails to inform, then he has to pay the penalty.
Sec 42 A No permission required in area covered by
Development plan

• On receipt of the information in writing and On payment of the

conversion tax , the revenue authority shall grant him sanad
• In case of any error in the sanad the concerned authority shall direct
to correct the error
42 B Conversion of the land use included in
final development plan
• No separate permission is required if the person who wants to convert his
land has paid nazrana. This shall apply in case where final development plan
has been published.
• Upon publication of the final development plan the collector shall determine
the conversion tax and non Agricultural assessment
• Where such land is held as occupant Class II, the collector shall examine the
documents by which such land is granted and after obtaining prior approval
of the authority , determine the nazrana and communicate the same to the
occupant and on payment of Nazrana, Collector shall grant him sanad.
• Necessary entry shall be made in the record of rights showing the
conversion.
• The notice shall be issued to the concerned Occupant, in case of class
I occupant within 30 days
42C conversion of land use for lands
including in the draft regional plan
• “ Development plan ” means a plan for the development or re-development of the
area within the jurisdiction of a Planning Authority and includes revision of a
development plan and] proposals of a special planning Authority for development
of land within its jurisdictions];
• “ Regional plan ” means a Plan for the development or re-development of a Region
which is approved by the State Government and has come into operation under
this Act;
• If for an area draft regional plan has been prepared or if regional plan has been
approved then the use of such land, shall be deemed to have been converted to
corresponding non-agricultural use, once development permission is granted.
• For such conversion it is necessary to pay conversion tax and for the land held as
class 2 Nazrana or premium shall be paid.
• if the permission to construct farm building is granted under sec 18 of
the MRTP Act then such permission shall be deemed to be the
permission envisaged under sec 41 for such farm building
42D land use for residential purpose
• Any land situated in an area (peripheral area) within 200 meters from the limits
of :
1. The site of village
2. Town or city, where such land adjacent to the limits of such town or city is
allocated as developable zone in the draft regional plan, shall be deemed to have
been converted for non agricultural use for residential purpose.
• The collector shall determine the conversion tax and non agricultural assessment
for such land and give notice to the concerned occupant for making payment
thereof
• In case of class II occupant, the collector shall examine the documents by which
such documents are granted and after obtaining the prior approval of the
authority competent to allow such conversion, determine the nazrana and
communicate the same to the occupant for payment of the same.
• After payment of nazrana and other govt. dues, necessary entry in the
record of rights shall be made.
Sec. 44 procedure for conversion of use from
one purpose to another
1. Subject to the provisions of subsection 2 of section 42, if the occupant of land
 whishes to use Agricultural land for non agricultural purpose or
Land held for specific non agricultural purpose, wishes to use it for any other non
agricultural purpose or
Desires to use for the same NA purpose but in relaxation of any of the conditions imposed
at the time of grant
Such occupant, or tenant shall with the consent of the tenant, occupant apply to the
Collector for permission
2. The Collector on receipt of an Application
 acknowledge it within 7 days
May return the Application if it is not made by the Applicant or not in a prescribed manner
Sec 44
3. The Collector after due enquiry may grant permission or refuse the
permission applied for taking into account public healthy, safety,
convenience or if it is contrary to the scheme for the planned
development of the village
Where such Application is rejected, the Collector shall give the reason
in writing
If the Collector fails to inform the Applicant of his decision within
ninety days or within prescribed period, then the permission applied
for shall be deemed to have been granted, subject to any conditions
prescribed in the rules made by the State Govt. in respect of such user
4. The person to whom the permission is granted, shall inform the
Tahasildar the date on which the change of user of land commenced
5. If the person fails to inform the Tahsildar within the specified period,
then he shall be liable to pay in addition to the NA assessment such fine
not exceeding Rs. 500/-
6. When land is permitted to be used for NA then sanad shall be
granted to the holder
7. The Collector shall direct correction of any error.
44A No permission required for bone fide
industrial use
1. Bona fide industrial use means the activity of manufacture,
preservation, processing of goods, industrial business or
enterprise, activity of tourism ect. Area used for godown,
canteen, office building for the industry

2. Where a land is situated:

Within the industrial zone of a draft or final regional plan or
within any agricultural zone of such regional plan or
Within the area where no such plan exists for bonafide industrial use
or
Within the area undertaken by a private developer under integrated
township project
No permission shall be required for conversion of use of land,
SUBJECT TO following conditions:
Conditions
• The person has clear title and access to land
• No such land is reserved for the public purpose
• The bona fide industrial use does not conflict with the overall scheme of the
development plan
• No such land is notified for acquisition
• Such person has to ensure that such proposed industry as the case may be does
not come up within 30 meters of any railway line or within 50 meters of a high
voltage transmission line
• Person shall inform the revenue officer, the change in the use of the land
• If the person fails to inform the Tahasildar or if it is found that the use of land is in
contravention of any of the conditions, the person shall be liable for the penalty.
• In contravention of any of the rules, the person will be required to
stop such contravention immediately
• The collector may require such person to remove any structure
• If the person fails to comply with the directions, the Collector may
impose further penalty
• If any cost is incurred in so doing it shall be recoverable form such
person as arrears of land revenue
• If the person fulfils all the conditions then sanad shall be grated
Sec 45 penalty for so using land without
permission
1. If the land held for one purpose is used for another purpose
Without the permission of the collector under sec 44 or
Before the expiry of the period after which the change of user is deemed to
have been granted under sec 44 or in contravention of the terms and
conditions
In contravention of any of the conditions subject to which any exemption or
concession in the payment of land revenue was granted
The holder shall be liable for penalty:
1.To pay in addition to NA assessment
2. To restore the land to its original use
Sec.47 exempt land from provisions of sec
41,42,44,45,
• The state govt. has a right to exempt any land or class of land from
the operation of any of the provisions of above sections.
Sec 161- Nistar Patrak
1. The Collector shall consistently with the provisions of this Code and the
rules made thereunder, prepare a Nistar Patrak embodying a scheme of
management of all unoccupied land in a village and all matters incidental
thereto, and more particularly the matters specified in section 162.
2. (2) A draft of the Nistar Patrak shall be published in the village and after
ascertaining the wishes of the residents of the village in the manner
determined by the Collector, it shall be finalised by the Collector.
3. (3) On a request being made by the village panchayat, or where there is
no village panchayat, on the application of not less than one-fourth of the
adult residents of a village, the Collector may, at any time, modify any
entry in the Nistar Patrak after such enquiry as he deems fit.
• 162. The following matters shall be provided in a Nistar Patrak, that is
to say,— (a) the terms and conditions on which grazing of cattle in the
village will be permitted ; (b) the terms and conditions on which and
the extent to which any resident of the village may obtain,— (i) wood,
timber, fuel or any other forest produce ; (ii) moram, kankar, sand,
earth, clay, stones or any other minor minerals;
Promoters & Builders Assn.Of Pune vs
State Of Maharashtra & Ors on 3
December, 2014
• The Petitioner is an Association representing individual builders of the
State of Maharashtra who carry out construction activities in the
normal course of business. The Association and also the individual
builders are aggrieved by the judgment of the Bombay High Court
dated 8.10.2010, inter alia, holding that "excavation activity even for
the purposes of laying foundation of the building would still attract
rigours of Section 48(7) of the Revenue Code". Under the aforesaid
provision of the Code extraction of minerals by any person without
assignment of any right by the State Government makes such person
liable to penalty, as prescribed.
• The Nuclear Power Corporation, the second appellant before us is a
Government Company engaged in the construction, maintenance and
operation of nuclear power station in India. It is aggrieved by the fact
that though an issue similar to the one raised by the builders had
been raised by it before the High Court the writ proceeding instituted
by the Corporation has been dismissed on the ground that statutory
remedy under the Maharashtra Land Revenue Code, 1966
(hereinafter referred to as 'the Code') had not been resorted to by the
Corporation.
• digging of earth for the purpose of laying of foundation of a building is
an integral part of the building activities undertaken by the
appellants. According to the appellant-builders, the earth excavated
or dug up is redeployed in the building itself at a particular stage of
the construction. On the basis that such activity amounts to mining of
a "minor mineral" i.e. ordinary earth and that the same is without due
permission/lease or assignment of the right to do so, the respondent
authorities have invoked the power under Section 48(7) of the Code
to levy penalty by the order(s) impugned before the High Court
• On behalf of the appellants it is pointed out that to attract Section
48(7) of the Code, the activity undertaken has to be unlawful. The
building operations undertaken by the appellant-builders are pursuant
to a final development plan sanctioned under Section 31 of the
Maharashtra Regional and Town Planning Act, 1966 (hereinafter for
short 'the MRTP Act'). In this regard the attention of the Court has
also been drawn to the provisions of Section 2(7) of the MRTP Act
which define "development" to mean "carrying out of buildings,
engineering, mining or other operations in or over or under, land
• It is also pointed out that by Notification dated 3.2.2000 issued under 
Section 3(e) of the Mines and Minerals (Development and 
Regulation) Act, 1957 (hereinafter for short referred to as 'the Act of
1957') ordinary earth has been declared to be a minor mineral but
only if it is used for filling or levelling purposes in construction of
embankments, roads, railways, buildings etc. According to the learned
counsel for the appellant-builders, the earth which is dug up for the
purposes of laying of foundation of buildings is not intended for filling
up or levelling purposes; digging of the earth is inbuilt in the course of
building operations. 
• The activity undertaken, therefore, cannot be characterised as one of
excavation of a minor mineral. Additionally, the provisions of Rule 6 of
the Maharashtra Land Revenue (Restriction on Use of Land) Rules,
1968 (hereinafter for short 'the Rules of 1968') has been relied upon
to contend that excavation of land for purposes of laying of
foundation for buildings do not require any previous permission of
the Collector which is otherwise mandated prior to use/excavation of
land for any of the purposes covered by the provisions of the Rules of
1968
• The definition of 'Mine' in Section 2(j) of the Mines Act, 1952 and the
meaning of the expression 'mining operation' assigned by Section 3(d)
 of the Act of 1957 has also been pressed into service to contend that
mere digging of earth as undertaken by the appellants cannot amount
to a mining activity. The learned counsel for the appellants (builders)
have alternatively contended that if the appellants are still to be held
liable under the provisions of Section 48(7) of the Code, the aforesaid
provision itself is liable to be adjudged as constitutionally invalid.
• In reply, the State has contended that after the inclusion of ordinary
earth in the definition of "minor minerals" by Notification dated
3.2.2000 under Section 3(e) of the 1957 Act, excavation of ordinary
earth without authorization under the Act of 1957 would make the
appellants liable not only to payment of penalty under the Code but
also for criminal prosecution under the Act of 1957. It is contended
that mere permission for construction of buildings; sanction of the
development plans or the provisions of Rule 6 of the Rules of 1968
does not absolve the appellants from fulfilling the statutory
obligations under the 1957 Act.
• Court held: A plain reading of the aforesaid provision would make it clear that
the quintessence of the provision contained in Section 48(7) is
extraction/removal of any mineral vested in the State without lawful authority or
without a lawful assignment by the State.
• Ordinary earth has been bought within the fold of a Minor Mineral by
Notification of 3.2.2000 issued under Section 3(e) of the Act of 1957. 
• It is, therefore, clear that "ordinary earth" used for filling or levelling purposes in
construction of embankments, roads, railways, buildings is deemed to be a minor
mineral. It is not in dispute that in the present appeals excavation of ordinary
earth had been undertaken by the appellants either for laying foundation of
buildings or for the purpose of widening of the channel to bring adequate
quantity of sea water for the purpose of cooling the nuclear plant.
• it would be to say that unless the excavation undertaken by the appellant-
builders is for any of the purposes contemplated by the Notification dated
3.2.2000 the liability of such builders to penalty under Section 48(7) of the Code
would be in serious doubt.
• Excavation of ordinary earth for uses not contemplated in the aforesaid
Notification, therefore, would not amount to a mining activity so as to attract the
wrath of the provisions of either the Code or the Act of 1957.
• The liability under Section 48(7) for excavation of ordinary earth would,
therefore, truly depend on a determination of the use/purpose for which the
excavated earth had been put to. An excavation undertaken to lay the foundation
of a building would not, ordinarily, carry the intention to use the excavated earth
for the purpose of filling up or levelling