State Government Ordered to Refund Excess Charges to M/s. M.P. Homes, Retain Premium for Non-Agricultural Land Use
In a significant judgment, the Bombay High Court has quashed the State Government's imposition of a 75% transfer premium on M/s. M.P. Homes, while upholding the levy of a 100% premium for changing the land use from agricultural to non-agricultural. The court has directed the State to refund the excess amount collected as transfer premium within two weeks.
The case involved M/s. M.P. Homes, which challenged the government's demand for a 75% transfer premium and a 100% premium for changing the use of two parcels of land in Raigad district. The land, classified as Tenure "D," was granted in perpetuity and was freely transferable under Rule 43 of the Bombay Land Revenue Rules, 1921. The petitioner contended that no government permission or premium was required for the transfer of such lands.
Justice Milind N. Jadhav, presiding over the case, examined the historical classification of the land and concluded that both under pre-independence and post-independence laws, the land was freely transferable without the need for government approval or transfer premium. The court found that the imposition of the 75% premium was illegal as it lacked a legal basis and contradicted existing revenue laws.
However, the court upheld the 100% premium for changing the land use to non-agricultural purposes, as the petitioner had agreed to this levy and had failed to demonstrate any prior change of use by previous owners. The judge noted that such a charge was justified to regularize the land use change.
The court's decision mandates the State Government to refund the amount collected as transfer premium while retaining the levy for land use change. The order is expected to have significant implications for land transactions involving similar classifications.
Bottom line:-
Land Revenue Laws - Refund of premium levied for regularisation of conveyance as transfer premium - State Government's levy of 75% premium for regularisation of conveyance as transfer premium found illegal - Levy of 100% premium for regularisation of change of user to non-agricultural purpose upheld.
Statutory provision(s): Rule 43 of Bombay Land Revenue Rules, 1921, Section 29 of Maharashtra Land Revenue Code, 1966.
M/s. M.P. Homes v. State of Maharashtra, (Bombay) : Law Finder Doc id # 2918734
