In a significant move, the Revenue and Forest Department of Maharashtra has amended the Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act, 1947 through an Ordinance dated October 15, 2024. This amendment is designed to make the process of regularizing illegal land transfers or partitions more affordable and accessible to the public. The key change involves a significant reduction in the regularization premium, which has been a barrier to compliance under the existing provisions.
Background and Objectives of the Amendment
The Maharashtra Prevention of Fragmentation and Consolidation of Holdings (Amendment) Act, 2017 allowed for the regularization of land transfers or partitions that took place between November 15, 1965, and the commencement of the 2017 Act. However, the premium for regularization was capped at 25 percent of the land’s market value as per the Annual Statement of Rates. Despite this provision, there has been a lack of public response due to the high cost of regularization premiums.
The Statement of Objects and Reasons for the 2024 Ordinance notes that the Government attributes this lack of response to the unaffordable premium costs. In light of this, a committee led by Shri Umakant Dangat was established to study relevant revenue laws and propose amendments that would encourage greater public participation in the regularization process.
Key Amendments
The Ordinance of 2024 makes the following crucial changes to the Act:
- Premium Reduction: The regularization premium has been reduced to 5 percent of the land’s market value, a significant drop from the previous 25 percent. This reduction aims to make the process more financially accessible for landowners.
- Extended Period for Regularization: The amendment allows for the regularization of land transfers or partitions that have taken place up to the date of the commencement of the Ordinance.
By fixing the premium at 5 percent in the Act itself, the Government seeks to facilitate the productive use of land and ensure that more landowners come forward to regularize their holdings.
Encouraging Public Participation
The amendment is expected to increase participation in the regularization process and unlock the productive potential of land that has been fragmented or transferred illegally. The reduction in the premium provides landowners with a more affordable opportunity to bring their landholdings in compliance with the law.
The Ordinance came into force immediately upon its notification, signaling the Government’s urgency in addressing the issue.