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Note in Relation to Registration of Transactions of Fragmented Land

The office of Inspector General of Registration and Controller of Stamps of State of Maharashtra issued a Circular dated July 12, 2021 bearing number 249/2013/454 concerning registration of documents which are subject to the provisions of Maharashtra Prevention of Fragmentation and Consolidation of Holdings (Amendment) Act, 2015 (“Circular”).

The Circular considers the 2015 amendment to the Prevention of Fragmentation and
Consolidation of Holdings Act, 1947 (“Act”), whereby section 8B of the Act was introduced
and consequently, the provision of the Act that imposed certain restrictions on the transfer of
fragmented land holdings (viz. sections 7, 8 and 8AA) was made inapplicable to the following
lands:

  1. Which are situated within the limits of a Municipal Corporation or a Municipal Council; or
  2. Which are situated within the jurisdiction of a Special Planning Authority or a New Town Development Authority appointed or constituted under the provisions of the Maharashtra Regional and Town Planning Act, 1966 (“MRTP Act”) or any other law for the time being in force; or
  3. Which are allocated to residential, commercial, industrial or any other non-agricultural use in the draft or final regional plan prepared under the MRTP Act or any other law for the time being in force.

The above exemption was, however, subject to the proviso which stated that no person shall
transfer any parcel of land situated in the areas specified above, which has an area less than the
standard area notified before the date of coming into force of the Maharashtra Prevention of
Fragmentation and Consolidation of Holdings (Amendment) Act, 2015, unless such parcel was
created as a result of sub-division or layout approved by the Planning Authority or the
Collector, under the provisions of the MRTP Act or any other law for the time being in force.

Further the Circular states that in view of the above provision, it has been observed that despite
the condition stipulated under the aforesaid proviso, transactions continue to take place in
relation to such land holdings without obtaining appropriate permission as stated therein. Thus,
the following directions have been provided:

  1. Where the total area of a survey number is two acres and if one, two or three gunthas of land is being sold out the same survey number, the document relating to such transaction will not be registered unless the layout of such survey number shows the demarcation of the one-two guntha(s) of land parcel and unless such demarcated layout is approved by the Collector or competent authority.
  2. If any party has already purchased a fragmented land parcel, the approval of the competent authority as per section 8B of the Act is to be obtained.
  3. Where land boundaries of the fragmented land parcel have been demarcated or if such fragmented land has been surveyed by the Government Land Records Department and such demarcation map reflects the independent boundaries of the land parcel to be sold, the above stated permission will not be required. However, the above-described conditions will subsequently apply to the land so demarcated and separated.

In accordance with the above, the Circular directs sub-registrars to exercise caution in the
matter and ensure that there are no irregularities while registering such documents and in case
of any irregularities being found, appropriate administrative action may be taken against the
concerned sub-registrar.

Image Credits: Photo by Gautier Pfeiffer on Unsplash

The Circular directs sub-registrars to exercise caution in the
matter and ensure that there are no irregularities while registering such documents.

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