Bombay HC: Convert agricultural land to non-agricultural land by paying 50% of unearned income

The Bombay HC ruled that 50% of unearned income has to be paid in order to convert an agricultural land into a non-agricultural one. This ruling was made by the court after a writ petition was filed that challenged the order passed by The Collector, Nasik. Under the said order, the concerned officer had allowed the conversion of an agricultural land into a non-agricultural one based on certain terms and conditions as per Government Resolution dated September 8, 1983. One of the terms of the order was that the original owner of the land, who in the present matter is the petitioner's father Namdeo Bankar, would have to pay his unearned income to the state and the land in question would continue to remain in Occupancy Class. The land in question was allotted by the state government to Namdeo Bankar's father in 1949 on permanent grant basis, i.e. Occupancy Class II. This class is a categorization of land under Section 29 of the Maharashtra Land Revenue Code it means that there are restrictions on transfer of such land. The amount to be paid by Bankar was Rs.59.52 lakhs, as calculated by the Collector, Nasik. Further the order passed by the Collector was opposed by Bankar and he filed an appeal against it to the Secretary and OSD. Consequently, the said order which laid down the conditions for conversion of land was turned down and the petitioner relied on the new order passed by the Secretary. However, the HC observed that the transfer and conversion of agricultural lands allotted by the state governments on the basis of Occupancy Class II is regulated by Government Resolution dated September 8, 1983. The said Government Resolution lays down the terms and conditions under which conversion and transfer can be granted. One of the conditions is that the transferee would continue to occupy the land as Occupancy Class II. Despite this the Secretary and OSD has directed the conversion of land from Occupancy Class II to Occupancy Class I which is in violation of the said Government Resolution. The order passed by the Secretary and OSD in the said matter is illegal and without jurisdiction. Thus, the demand on part of the state for fifty per cent of the unearned income was justified as per the terms of allotment. Thus, the said petition was dismissed by the Bombay HC.

The order passed by the Bombay HC was justified as per the rules of allotment laid down in 1983. This order shall act as a piece of information to the people who want to convert their agricultural property that comes under Occupancy Class II into a non agricultural one and were until now unaware about the legal procedure to be followed for the same.