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Sagar Phadke (Partner)     22 January 2011

Agri Land Ceiling to Company in Maharashtra

Maharashtra Agricultural Lands (Ceiling on Holdings) Act 1961, provides that.. ` No person shall hold agricultural land in excess of the ceiling limit prescribed`. Max ceiling limit for dry area is 54 Acres. Now the said Act does not contain definition of person, if we turn to BTAL Act for definition of person that also does not have the same.. Therefore we have to take recourse to General Clauses Act which defines person includes Body Corporate.

By this logic it is clear that Company also is a person and can not hold agricultural land in excess of Max 54 Acres. However I have come accross examples where companies are having large land holdings. Pearl Agro Forest representative who had met me claimed that the said Company holds more than 5000 acres land in Mah. State. I do not know how ?

I have also met personally people including advocates and revenue officials who said Ceiling is not applicable to Company. But no one was able to Show any Legal Base  for this general impression.

Any Clues ?



Learning

 9 Replies

tushar (lawyer)     24 January 2011

Dear,Sagar

yes company can hold land  more than ceiling limit .As per the  sec.63-1A of BTAL act if the company intends to purchase land under specific purpose mentioned in that section like industrial or special township project,then Development Commissioner /Reveunue Minister  grant permission to purchase land in that specific area.And in that case there is no ceiling limit .

And if any has to hold more than 54 acre land and same is not cover under Sec.63_1A of BTAL act then separate permission under ceiling act required.

Sagar Phadke (Partner)     24 January 2011

Thanks Tushar,

Yes, 63A_I_a for Industrial Purpose is okay, in fact I have been successful in obtaining two such permissions for 235 and 204 Acres for setting up Industrial Parks.

Now the question before me was that whether Section 47 which provides for exemption from ceiling and requires special govt permission to be declared in official gazzette, does it have any bye pass...

I really doubt how much of present large agricultural and plantation holdings by Companies have been done through proper exemption procedure under Land Ceiling Act. 

Any clues ?

tushar (lawyer)     28 January 2011

 refer new amendment section 47-2-c of ceiling act and plz  share any new information regarding land proclmation

CA RAVINDRA DAHAD (CA)     17 March 2011

Yes. But what about partnership firms? Is the partnership firm a 'person' under general clauses act? Can a registered partnership also hold 54 acres land? Can two individuals whose 54 acres limit is already exhausted form a registered partnership firm and hold another 54 acres of land? 

vidmahe (asst.product development manager)     18 June 2011

im from andhra pradesh,may i know whether there is any exception to firms (as our s is an agribased company)under ap land ceiling act.My doubt is that when a company can hold land more than ceiling limit,could the land be used for research/experimental purpose?kindly pls clear my doubt and let me know the section of law regarding this....thanq

Sagar Phadke (Partner)     18 June 2011

@ Tushar , about  " 47 - 2 -c  " .. could not get the G.R. but Please let me know is there any blanket or general exemption from ceiling under that ?....  as I remember.. In case of Sahara Housing before Mumbai HC.. the Govt itself had pleaded that Industrial Purpose lands are not covered by ceiling provisions.. but then the matter had went to SC... dont know the final fate of the case. Issue of ceiling was raised in that case..

Suunilkumar (director)     16 September 2011

Dear Mr.Tushar,

I wanted to know what permission/s is/are required to purchase AGRI land in excess of 25 acres in favor of PVT LTD company located in MS  for doing agricultural business like plantation ,farming as well  R & D farm .Is there any permission required to purchase agricultural land for multilocational R & D farm having total acreage > 25acres

suunil chaudhry

TEJAL PANCHAMIA (MANAGER )     27 February 2013

Dear Mr. Tushar,

We have obtianed permission u/s63 of the BTAL ACT approval from the collector for undertaking reaserch activites in Maharashtra. In that case do we have to take permission under the ceiling act if the land hold by us on lease basis is beyond 54 acres.

radhakrishna murthy (advocate)     02 April 2015

The maximum extent of dry land can be held by an individual is 54 acres. The company is consisting of number of share holders and the company also provides employment as such there is no ceiling limit for a company


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