Exemption under section 20 for bonafide industrial purpose of land of Urban Land (Ceiling & Regulation) Act, 1976

 

The Urban Land (Ceiling & Regulation) Act 1976, was passed by parliament in 1976 with two main objectives:

(a)  To prevent the concentration of urban land in the hands of few persons and speculation and profiteering therein;

(b) To bring about equitable distribution of land in urban agglomerations to sub serve

      the common good.

 

In order to achieve the above objects, the Act makes provisions for the following :

(a)  For imposition of ceiling on vacant land in urban agglomerations;

(b)  For acquisition of such vacant land in excess of ceiling limit;

(c)  For regulating the construction of buildings on such land and for matters connected therewith.

 

The Act came into force in Maharashtra on February 17, 1976. The main objective of the act was to make urban land available for housing purposes at a reasonable rate. As the objective was not to control industrial lands, the state government has followed a liberal policy of granting exemption under section 20 of the Act to land in industrial zones held in excess of the ceiling limit by industrial units/entrepreneurs, if they desire to utilize such spaces for bonafide industrial use.

 

The term 'Bonafide Industrial Use' includes the use of land to establish industrial units, industrial estates/sheds, godowns for use of the user industry, R&D facilities, workers quarters, office buildings for the benefit of the user industry, etc.

 

Transfer of the exempted surplus vacant land held by one person to another person for bonafide industrial use is also allowed, if the original land holder maintains a minimum 50 per cent equity capital in the partnership firm or in the Private Limited / Limited Company to be started on such exempted land for the implementation of any industrial project. In other cases, the transfer is allowed by charging 25% of the market value of the excess land in A and B type urban agglomerations and 15% of the market value of the excess land in C and D types, as transfer fee.

 

The Act applies to nine major urban agglomerations in Maharashtra state -Greater Mumbai, Thane, Ulhasnagar, Pune, Nashik, Sangli, Solapur, Kolhapur and Nagpur. The Additional Collector / Deputy Collector and Competent Authority (ULC) of the respective urban agglomeration is empowered by the Act to decide the vacant land held by a person in excess of the ceiling limit. (A 'person' includes an individual, a family, a firm, a company or a body of individuals).

 

Whom to apply for exemption under section 20

 

The following officers of the state government have been delegated with the powers to exempt surplus vacant land in industrial zone in the above urban agglomeration for bonafide industrial use.


1.       For lands in MIDC areas in the state:

Chief Executive Officer,

Maharashtra Industrial Development Corporation (MIDC),

Mahakali Caves Road, Marol, Andheri (East),

Mumbai 400 093.

Tel:     (022)   820 7800

Fax: (022)  822 1587.

2.       For Nashik, Sangli, Kolhapur and Solapur urban agglomerations, excepting lands held by individuals and MIDC industrial areas:

Managing Director,

Western Maharashtra Development Corporation (WMDC),

Kubera Chambers, JM Road,

Shivaji Nagar, Pune 411 005.

Tel. (020)  323 402 / 323 324

 

3.       For lands in Nagpur Urban Agglomerates:

Managing Director,

Development Corporation of Vidarbha (DCVL),

Mahajan Building, Main Road, Sitabuldi,

Nagpur 440012.

Tel:  (0712) 524 833 / 522 034

Fax.  (0712) 532 478.

4.       For lands from Greater Mumbai, Pune, Thane and Ulhasnagar urban agglomerations, except MIDC areas:

Development Commissioner (Industries),

Directorate of Industries,

New Administrative Building,

Opposite Mantralaya, Mumbai 400 032.

Tel: (022) 202 8616 / 202 3584

Fax. (022) 202 6826.

List of documents required to be submitted for exemption of surplus vacant land for bonafide industrial use:

 

  1. Application form in prescribed format in duplicate,
  2. Documentary evidence about constitution of the firm,
  3. Documents to establish possession of the land,
  4. Certified copies of the return under section  6(1) and 15 about land holding filed to the competent authority (ULC), order under section  8(4) together with final statement and demarcation plan of the surplus vacant land issued by the CA (ULC).
  5. Development plan remarks of the local planning I municipal authority about the land.
  6. Brief note about the existing and / or proposed industrial activities giving justifications about requirement of the land. Land required for future expansion for the next 15 years should be indicated (phase wise).
  7. Copies of industrial licenses / registrations / IEMs.
  8. Block plan of the land at the scale of 1 cm = 5 Mtrs, indicating boundaries of the plot, land reserved for road widening / other public purposes by the local planning authority, existing and proposed buildings showing the plinth area, open storage, internal roads, RG, parking, loading and unloading area, etc. A detailed area statement should be indicated on the plan. The plan should be prepared and certified by a chartered architect.

The exemption under section 20 of ULC is granted by Development Commissioner (Industries) within four weeks from the date of receipt the complete application along with the required documents.

Land And ULC