USE OF I.A. & A.D.

ONLY

INDAN AUDIT AND ACCOUNTS DEPARTMENT .

RECEIPT AUDIT MANUAL

( LAND REVENUE)

OFFICE OF THE ACCOUNTANT GENERAL(AUDIT)-II, MAHARSHTRA,

NAGPUR

1
 PREFACE

The audit of the Land Revenue Receipts and refunds has been taken up by this
office from April 1974. This Manual has been prepared in accordance with the
instructions contained in the Comptroller and Auditor General’s Circular No. 7 of 2004
circulated under letter no.299-SRA/3(I)/2004; Dt. 26/07/2004.

The instructions contained in this Manual are for the guidance of the members of
the State Receipt Audit Headquarters and the Inspection parties. They should be
considered as Supplementary to those contained in the C.A.G’s Manual of Standing
Orders (Technical) volume- I and should not be quoted as authority in any of the
correspondence outside this office.

S.R.A.(HQ) Section is responsible to keep this Manual upto date.

Suggestions for improvement of this Manual as well as indication of omissions

and errors, if any, may be communicated to S.R.A.(HQ) Section.

CONTENTS
REVENUE AUDIT MANUAL
(Land Revenue)
PREFACE ...
Abbreviations used ...
Publications referred to in this Manual ...
Part I
Chapter
1. Introduction ...
2. Historical and Legislative Background ...
3. Organizational set up of Revenue Department ...
Part II
4. Definition and scope of Land Revenue ...
5. Definitions with important judicial decisions ...
explaining the meaning of various terms used in
various Acts and Rules
2
6. Agricultural Land Revenue ...
7. Reduction, Suspension and Remission of Land ...
Revenue
8. Non-agricultural assessment procedure and scope ...
9. Grant of lands/and leases with right of Government ...
to Mines and Minerals
10. Miscellaneous items of Land Revenue, ...
encroachments, water rates, etc.
11. Mines and Minerals ...
Part III
12. Maintenance of Forms and Accounts at ...
Village/Taluka level
Part IV
13. Special feature of Bombay City Land Revenue ...
Audit
Part V
14. Extent and periodicity of Land Revenue Receipt ...
Audit/Decisions of the Comptroller and Auditor
General of India
15. The Maharashtra Agricultural Lands (Ceiling on ...
Holdings)
16. Audit Procedure ...
Part VI (Appendices)
1. (A) Rules for assessment in Western
Maharashtra. ...
(B) Rules for assessment in Ex- M.P.
Region (Vidharbha). ...

(C) Rules for assessment in Ex-Hyderabad

State region (Marathwada).
...
2. Broad Outline of Forms and Registers relating to
Revenue Accounts ...
3. Districts and Tahsils in Maharashtra. ...
3
4. Questionnaire to be sent to Revenue Offices before
commencement of local audit.
...
5. Rates of Royalty recoverable. ...
6. Files maintained in SRA(HQ). ...
Annexure
7. Some imp. G.R’s / circulars on N.A.A.
1. Title sheet
Index

ABBREVIATIONS USED

B L R Rules 1921 - The Bombay Land Revenue Rules, 1921

E.G.S. - Employment Guarantee Scheme
Ex- MP - Ex-Madhya Pradesh
K.J.P. - Kami Jasth Patrak
M.L.R. Code - The Maharashtra Land Revenue Code, 1966
M.P.L.R. Code - The Madhya Pradesh Land Revenue Code
1954
N.A. - Non- Agricultural
N.A.A. - Non- Agricultural Assessment
S.R.A. - State Receipt Audit
T.F. - Taluka Form
V.F. - Village Form
V.P. - Village Panchayat
Z.P. - Zilla Parishad

Books, Acts, Codes and other Publications referred to in this Manual

Acts :

1. The Constitution of India

2. C.A.G.’s (Duties, powers and Conditions of Service) Act, 1971
3. Comptroller and Auditor General’s M.S.O. (T) Vol. I
4
4. Bombay City Land Revenue Act, 1876
5. Bombay Land Revenue Code, 1879
6. The C.P. Land Revenue Act 1917
7. The Berar Land Revenue Code, 1928
8. M.P. Land Revenue Code, 1954
9. The Madhya Pradesh Abolition of Proprietary Rights (Estates) Mahals and
Alienated Lands) Act, 1950
10. Hyderabad Land Revenue Act, 1317 F.
11. The Hyderabad Land(Special Assessment) Act, 1952.
12. The Hyderabad Abolition of Jagir Regulation Act, 1949
13. The Hyderabad Abolition of Inam Act, 1954
14. The Bombay Village Panchayat Act, 1958
15. Maharaashtra Zilla Parishad and Panchayat Samiti Act, 1961
16. The Maharashtra Education (cess) Act, 1962
17. The M.L.R. Code, 1966
18. The Maharashtra Increase of L.R. and Special Assessment Act, 1974
19. The Maharashtra L.R. Code (Amendment) Act, 197
20. The Maharashtra L.R. Manual Vol. I to V

Rules :
21. The Bombay Land Revenue Rules, 1921
22. The Bombay L.R. Rules 1921 by F.G.H. Anders
23. The Maharashtra Land Revenue (Allusion and Dilution) Rules, 1967
24. The Maharashtra Land Revenue (Conversion of use of land and N.A.A.) Rules,
1969.
25. The Maharashtra Land Revenue (Assessment and Settlement of Land Revenue on
Agricultural Lands) Rules, 1970.

5
 PART – I
CHAPTER - I
INTRODUCTION
1.1 The Comptroller and Auditor General of India has been entrusted with the duty to
audit all receipts which are payable into the consolidated fund of India and of
each State and of each Union Territory having a legislative Assembly and to
satisfy himself that the rules and procedure in that behalf are designed to secure
an effective check on assessment, collection and proper allocation of revenue and
are being duly observed and to make for this purpose, such examination as he
thinks fit and to report thereon.
1.2 Audit of revenue receipts differs from that of expenditure. In the former,
attention must be given not only to examining the records of amounts actually
received but also ascertaining that adequate precautions are taken to ensure that
all the amounts received or due to be received during a particular period of
accounts, are properly and promptly brought to account.
1.3 Audit should not in any way substitute it-self for the Revenue Authorities in the
performance of their statutory duties, but audit should satisfy itself, in general that
the departmental machinery is sufficiently safe-guarded against errors and frauds
and so far as can be judged, procedure is calculated to give effect to the
requirements of Law.
1.4 Audit of receipts will be regulated mainly with reference to the statutory
provisions or financial or other rules or orders which may be applicable to the
particular receipts involved. If the test-check reveals a defect in such rules, the
advisability of an amendment should be brought to notice.
1.5 In order to discharge these functions effectively the Auditor must be thoroughly
conversant with the processes and procedures, relating to the levy and collection
of taxes and the laws and the rules governing such processes and procedures.
1.6 Audit does not consider it the main part of its duties to review the judgement
exercised or the decision taken in individual cases by Officers, entrusted with
these duties, but it must be recognized that an examination of such cases may be
an important factor, in judging the effectiveness of assessment procedure, where,
for example, the information received in any individual case is insufficient to
enable audit to see how the requirement of Law has been complied with, Audit
6
 may consider it its duty to ask for further information to enable it to form the
judgement rather than towards detection of individual errors that audit enquiries
should be directed. The detection of individual errors is an incident rather than
the object of Audit.
1.7 Audit will have access to the relevant records and papers of the Revenue
Department, when dealing with general questions or examining individual cases
in their effect on any particular or general question. But they should observe
secrecy in the matter relating to audit.
1.8 Audit of internal contorls
Ordinarily, Audit will see that the internal procedures adequately secure correct
and regular accounting of demands, collection and refunds, that no amounts due to
Government remain outstanding in its books without sufficient reason and that the claim
are purused with due diligence and are not abandoned or reduced except with adequate
justification and with proper authority.
The most important function of Audit in relation to Land Revenue assessments
and refunds is to satisfy itself, by such test checks as it may consider necessary, that the
internal procedures adequately provide for and actually ensure :
i) the collection and utilisation of data necessary for the computation of the demand
or refund under law;
ii) that the computation and realisation of various taxes, fees, rents, royalty, etc. are
in accordance with the applicable tax laws.
iii) the prompt raising of demands on tax payers in the manner required by law;
iv) the regular accounting of demands, collection and refunds;
v) the correct accounting and allocation of collections and their credit to the
Consolidated Fund;
vi) that the relevant and requisite records are being maintained properly;
vii) that proper arrangements are in place to safeguard against negligence or omission
to levy or collect taxes or to authorise refunds;
viii) that adequate control and monitoring mechanisms have been devised to prevent
loss or leakage of revenue.
ix) that there has not been any loss or leakage of revenue on account of lacunae or
loopholes in the rules framed for the purpose or on account of avoidable delays in
the issue of the necessary notifications and orders.
x) that the machinery for detection of cases of evasion is adequate;
7
xi) that double refunds, fraudulent or forged refund orders or other losses of revenue
through fraud, default or errors are promptly brought to light and investigated;
xii) that the demands of revenue are pursued with due diligence and are not
abandoned or reduced except with adequate justification and proper authority;
xiii) that cases pending in courts of law or before appellate authorities have been
pursued adequately and appeals, wherever justified or considered necessary, have
been field within the period of limitation; and
xiv) that the estimates of revenue have been realized at the end of the financial year.
xv) that penalty or fine recoverable from any person for delayed payments of land
revenue or unauthorised occupation/diversion or encroachment of land is properly
calculated in advance with the laws and there is no omission to levy or collect the
penalty/fine and in case where levy of penalty is discration any whether such levy
was considered by the Competant Revenue Authority. In the later case, the
quantum of penalty imposed would be outside the preview of audit.
Note :- In case of shortfall in the realization of the estimates, Audit should ascertain if
this was attributable to negligence in collection or whether the original estimates
themselves were erroneous or unreliable.

1.9 In the subsequent chapters of this manual, the basic provisions of Law and the
rules governing the assessment and collection of land revenue are set out. Being
only a summary, this manual should in no sense, be regarded as a substitute for
the Acts themselves and, therefore, it should be treated merely as a preliminary
step to enable the Audit to grasp the essentials of the implementation of Land
Revenue Code and Laws made thereunder. For a further and comprehensive
study he should refer to the provisions of the Acts and rules and the case laws on
the subject.
1.10 The audit of Land Revenue Receipts and refunds remains subject to the general
principles governing the audit of receipts as laid down in Chapter 4 of section II
of the Comptroller and Auditor General’s Manual of Standing Orders (Technical)
Vol. I. This manual supplements these provisions, specifically in regard to Land
Revenue Receipts in some detail.
1.11 The most important function of audit in regard to revenue receipts and refunds is
to see that adequate regulations and procedure have been framed by the Revenue
Department to secure an effective check on assessment, collection, etc. and to
8
 satisfy itself by adequate test-check that such regulations and procedures are
actually being observed. Audit should also make such examination, as it thinks
fit, in regard to the correctness of the sums brought to account. In the audit of
receipts, the general is more important than the particular.
1.12 It is primarily the responsibility of the departmental authorities to see that all
revenues or other amounts due to Government, which have to be brought to
account, are correctly and promptly assessed, realized and credited to Government
account During the audit of receipts, it should, however, be seen that all receipts
which have entered the books of a department, are correctly calculated and are, in
fact, credited to Government account in time. It should be seen that the internal
procedure adequately secures correct and regular account of demands, collection
and refunds and no amounts, due to Government are left outstanding on its books
without sufficient reasons and that the executive have not granted unjustified or
unauthorized remissions.

9
 PART - I
CHAPTER – 2
HISTORICAL AND LEGISLATIVE BACKGROUND

2.1.1 By virtue of the powers, given to the State Legislature under Article 246 (3) of the
Constitution of India, read with entry 18 of the list II of the Seventh Schedule
thereto, the State Government is empowered to levy tax, commonly known as
Land Revenue, which includes, premium, rent, lease money, quit-rent, judi, cess,
etc., on any land, wherever situate. Consequent upon passing of Comptroller and
Auditor General’s (Duties, Powers and Conditions of Service) Act 1971, audit of
receipts has been made a statutory function. Accordingly, regular audit of Land
revenue receipts was taken up from July, 1973.
2.2:1 Till 15th August 1967, the three different regions of the State were governed by
the land revenue laws prevailing in these three regions of the respective State (prior to the
Reorganization of State) that is to say –

i) Erstwhile Bombay State :

A) The Bombay Land Revenue Code, 1879.

B) The Bombay City Land Revenue Act, 1876.
ii) Vidarbha areas of erstwhile Madhya Pradesh
a) The Berar Land Revenue Code, 1928 (in the district of Amravati, Akola,
Buldhana and Yeotmal upto 1/10/55).
b) The Central provinces Land Revenue Act, 1919 (in the districts of Nagpur,
Wardha Bhandara and Chandrapur upto 1/10/55).
c) The Madhya Pradesh Land Revenue Code, 1954 came into force in all the
districts of the Vidarbha Region on the 1st October, 1955.
iii) Marathwada region of erstwhile Huyderabad State :
(a) The Hyderabad Land Revenue Act, 1317 F.
2.2.2 Section 336 of the Maharashtra Land Revenue Code, 1966 (repealed) the laws
stated therein (which includes the above noted laws also) but at the same time saved the
operation of anything done or any action taken (under the laws so repealed) including any
rules, assessment and various other matters enumerated in the third proviso to that section
10
by providing that they shall continue to be in force in so far as they are not inconsistent
with the provisions of the Maharashtra Land Revenue Code unless and until superseded
by anything done or action taken under the M.L.R. Code.

2.2.3 : All the revenue matters such as non- agricultural assessment, standard rate of
NAA, grant of leases, fixation of lease rent, premium, term of settlement, guarantee
period etc. decided or finalized before (1967) (date of commencement of the MLR Code)
would continue to remain in force for the whole period for which it was fixed and
thereafter until it is altered under the provisions of the MLR Code.

2.2.4 : With the introduction of the Maharashtra Land Revenue Code, 1966 with effect
from 15th August 1967, a uniform land revenue law is applied in whole of the State of
Maharashtra. Accordingly land revenue assessment, collection, suspension, remission as
well as revenue accounting systems and procedure in revenue offices at all levels and
other related matters are regulated as per the provisions of the Maharashtra Land
Revenue Code, rules framed and statutory orders and notifications issued thereunder.

2.2.5 : Salient features and important provisions regulating the non-agricultural

assessment, prevalent in the three regions of the Maharashtra State, prior to introduction
of MLR Code 1966, are given in Appendix-I (A) to (C).

2.3 : Before dealing with the basic provisions of the laws and rules governing the
assessment and collection of Land Revenue Receipts, it would be necessary to review
briefly the historical and legislative background of the main enactment, which regulate
the substantive and procedural laws, relating to the Land Revenue Receipts in the State of
Maharashtra.

2.4 : In Western Maharashtra and Marathwada regions, the land system was
predominantly rayatwari. With the passing of the various Tenure Abolition of Jagir
Regulation 1949, and the Hyderabad Abolition of Inam Act, 1954, the lands in both these
regions became (barring a few exceptions) rayatwari throughout. In Vidarbha, however,
till 1950, the land system was zamindari and proprietary. With the enactment of the
Madhya Pradesh Abolition of proprietary Rights (Estates Mahals and Alienated Lands)

11
Act 1950, the Proprietary Rights of the Zamindars were abolished with the result that the
land system has now become rayatwari throughout the State.

2.5 : By enacting various Inam Abolition Acts, all Inams, except Devastan Inams, were
abolished from 1st August 1955 . By virtue of this, all inami lands ceased to be held as
revenue free land, on or after 1st August 1955 and as such became liable to be assessed to
land revenue according to its use, such as agriculture, residential, industrial, commercial,
etc.

2.6 : (I) Consequent upon enactment of Maharashtra Zilla Parishad and Panchayat
Samitis Act, 1961, local cess at minimum rate of Rs. 0.20 paise per rupee of Land
Revenue was introduced from the year 1962-63 both in urban and non-urban areas. Such
cess, has however, been discontinued from 1st April, 1974 in respect of areas, falling
under the jurisdiction of Municipalities, Municipal Councils, Cantonments and other
notified areas.
Under section 127 of the Bombay village Panchayat Act, 1958, V.P. Cess at the rate of
100 paise on every rupee of the sum payable to Government. As ordinary land revenue in
the areas of village Panchayats is also leviable with effect from 1962.

2.7 : The Government. Of Maharashtra in order to realize more revenue from bigger
tenants, introduced various cesses and surcharges, in the form of Education cess,
Increased Land Revenue Cess, Employment Guarantee cess etc., the details of which
have been discussed in the subsequent chapters.

2.8 : Levy and collection of Land Revenue are governed by the provisions of the Land
Revenue Act and the rules made thereunder by the State Government. All lands to
whatever purpose applied and where ever situated are liable to payment of revenues or
rent to Government. Except such land as has been wholly exempted from such liability
by special grant of Sanads, or contracts with the State Government. Or by the provisions
of any law for the time being in force.

12
 PART – I
CHAPTER – 3
3.1 Organizational set up of Revenue Department :

For the purpose of revenue and general administration of the State of Maharashtra
the State has been divided into 35 districts including city of Bombay. The city of
Bombay is treated as a separate district, to which special provisions contained in Chapter
XIV of the Maharashtra Land Revenue Code, (Sections 260 to 307), 1966 apply. Each
district has been sub-divided into one or more sub divisions and each sub-division into
one or more sub divisions and each sub-division into one or more tahsils. There are 360
tahsils in the State. A list showing the names of the districts and the tahsils in the State is
given in Appendix 3 of the Manual.

3.2 : The control of all non-judicial matters connected with Land Revenue in the State
is vested in the State Government (acting through Revenue and Forests Department) and
the control of all judicial matters vests with Maharashtra Revenue Tribunal, Bombay,
except any such matter which is sub-judice.

3.3 : The Revenue work is broadly divided into two branches i.e. (I) Administrative
and (ii) Survey. The departmental set up is briefly shown below :-

Revenue and Forests :

Jurisdiction Head of Administrative wing Head of survey wing
1) Division i) Commissioner i) Settlement Commissioner
ii) Additional Commissioner ii) Director of land records
iii) Assistant Commissioner iii) Deputy Director of Land
Records
2) District i) Collector i) Superintendent of land records
ii) Additional Collector ii) District Inspector of Land
records
iii) Assistant/Dy. Collector or iii) Assistant Dsitt. Inspector of
13
 Sub-Divisional Officer, land records.
3) Taluka i) Tahsildar i) Survey officers
ii) Addl. Tahsildar ii) Survey Tahsildars
iii) Naib Tahsildar iii) Taluka Inspector of Land
Records
4) Village Revenue Inspectors or Group or
circle officers of
Patwari/Talathis villages and
Kotwal.

3.4 Administrative wing :

(I) A commissioner of a division is the chief controlling authority in all matters
connected with the land revenue in his division, subject to superintendence direction and
control of the State Government in Revenue and Forests Department. For each division a
commissioner is appointed by the State Government. which may appoint in a division, an
Additional Commissioner or Assistant Commissioner as may be expedient to assist the
Commissioner of the Division.

ii) The State Government. have also to appoint a collector for each district (including
the city of Bombay) and a Tahsildar for each taluka. A Collector of a district and
a Tahsildar of a Taluka, so appointed will be in charge of the overall revenue
administration of the concerned district and Taluka respectively.
iii) The State Government. may appoint one or more Additional Collectors in each
district and so many Assistant Collectors, to assist the revenue officers as it may
be deemed expedient. Similarly for assisting Tahsildars for a Taluka one or more
additional Tahsildars, as may be necessary may also be appointed.
(iv) Subject to the general orders of the State Government. the Collector may
place any assistant or Deputy Collector in charge of one or more sub-divisions of a
district. The Collector may also appoint in each district, as many persons as he may think
fit to be, circle officers and circle inspectors to be in charge of a circle, and one Talathi or
more for a ‘saza’- a group of villages and village servants for each village or groups of
villages.

14
3.5 Survey wing
The State Government may appoint such officers, designated as “settlement
Commissioner”, “Director of Land Records”, “Deputy Directors of Land
Records”, “Superintendents of Land-Records”, “Settlement Officer”, “Survey
Tahsildars”, “District Inspector o Land Records”, etc. for the purpose of
“Revenue Survey”, ‘Assessment and Settlement of Land Revenue of Agricultural
Lands’, ‘Survey of Lands within the sites of villages, Towns and Cities’,
determination and fixation of village boundaries, field boundaries, and for
maintenance of Records of Rights. etc.
3.6 The Settlement Commissioner is in charge of all matters relating to
settlement, throughout the State and in respect thereof he exercises such powers
and discharges such duties as are conferred and imposed on him, under the
Maharashtra Land Revenue Code, 1966. The Settlement Officers, Assistant
Settlement Officers, the survey Tahsildars, the District Inspector of Land Records
and other Survey staff work under the control of Settlement Commissioner.

3.7 The land Revenue Act of the State Government. sets out the pattern of
organization for assessment and collection of land revenue.

The land revenue Act is administered at the district level by the Collector of the
district. He is assisted by a sub-divisional officer at the sub-divisional level. The
main pivot of the machinery for assessment and collection of Land Revenue,
however is the Tahsildar/circle officer who is in charge of a tahsil/circle and is
responsible for assessment and collection of land revenue for his taluka/circle.
For the purpose of collection of land revenue from holders and tenants of the
lands, the Tahsildar is assisted by ‘Patwari’ (or Talathi) each of whom is in charge
of a number of villages. The latter collects the land revenue or rent due and
remits the collection periodically into the treasury under intimation to the circle
officer/Tahsildar.

15
 P A R T – II
CHAPTER - 4

Definition and scope of Land Revenue

4.1.1 The term ‘Land Revenue’ is defined under section 2(19) of the M.L.R.
Code 1966, as “all sums and payments, in money received or legally
claimable by or on behalf of the State Government, from any person on
account of any land or interest in or right exercisable over land, held by or
vested in him, under whatever designation. Such sum may be payable and
any cess or rate, authorized by the State Government. under the provisions
of any law for the time being in force, and includes premium rent, lease
money, quit rent, judi payable by an inamdar or any other payment,
provided under any Act, Rule, contract or deed on account of Land. The
word ‘Land’ not only means the surface of the ground but also everything
on or over or under it. Thus, it includes the upper soil and sub-soil,
whether it may be gravel, sand or clay. Under section 2(16) of the Code,
‘Land’ includes benefits to arise out of land, and things attached to earth
or permanently fastened to anything, attached to earth and also shares in,
or charges on the revenue or rent of village or other defined portions of
territory. The following are the classes of persons holding land from the
State.

a) Occupants - Class I
b) Occupants - Class II
c) Government lessees.

4.1.2 Occupants – Class I are those who

a) hold unalienated land in perpetuity and without any restrictions on the right to
transfer.
b) immediately before the commencement of MLR Code 1966 hold land in full
occupancy or Bhumiswami rights without any restriction on the right to transfer under the
provisions of law prior to commencement of MLR Code and
16
c) Notwithstanding any notification of order issued under Section 150 of the
M.P.L.R. Code 1954, are holders of Land in Bhumidhari rights in any local areas in
Vidarbha and are permitted hereafter..

4.1.3 Occupants - Class II consist of persons who-

a) hold unalienated land in perpetuity subject to restrictions on the right to transfer.

b) Immediately before the commencement of the MLR Code 1966 hold-

i) land in Vidarbha in Bhimiswami rights with restrictions on right to transfer or in

Bhumidari rights under M.P.L.R. Code 1954, and
ii) elsewhere hold land in occupancy rights with restrictions on the right to transfer.

c) before the commencement of this Code 1966 have been granted rights in
unalienated land under leases which entitle them to hold the land in perpetuity or
for a period not less than 50 years with option to renew on fixed rent.

4.2 Government holds title over all lands, public roads, paths, bridges, ditches, dikes
and fences, the bed of sea, and of harbours and creeks below the high watermarks, and
rivers, streams, nallas, lakes and tanks and all canals and water courses, etc. which are not
property of others. The idea underlying taxation by the State on the land is that a land
yields a definite profit and definite return and the state as a supreme land lord is entitled
to a definite percentage of that profit.

4.3 The power of State to assess all lands also involves another power of alienating
the right to receive assessment in favour of individuals and it is to the use of this power,
the words ‘alienated lands’ ‘inams and Jagirdars’ etc. are used, wherever Government
relinquishes its right to receive any assessment for such land.

‘Alienated’ means transferred in so far as the rights of the State Government to payment
of rent on land revenue are concerned, wholly or partially, to the ownership of any
person. (Section 2(2) of Maharashtra Land Revenue Code 1966).

17
4.4 Under section 2(21) of the Maharashtra Land Revenue Code 1966, revenue
derived from the lands, used for non-agricultural purpose, such as residential, industrial,
commercial, is also Land revenue, falling under the definition of the Section 2(19) of the
Code. The mere circumstances that non-agricultural assessment has not been previously
levied in respect of lands, which were converted to non-agricultural purpose, with
permission of Government on payment of fine does not imply any limitation on the
prerogative of the State to assess the lands to land revenue and not to revise the
assessment periodically, according to law.

18
 CHAPTER–5
DEFINITIONS WITH IMPORTANT JUDICIAL DECISIONS
EXPLAINING THE MEANING OF VARIOUS TERMS USED IN
VARIOUS ACTS AND RULES

In this Code, unless the context otherwise requires-

(1): “agricultural year’ means the year commencing on such date as the State
Government may, by notification in the Official Gazette, appoint;

Note : The State Government has appointed the 1st day of April to be the date of
commencement of agricultural year by Government Notification, Revenue and
Forests Department, No. UNF-1367-R dated the 11th August, 1967, (vide
Appendix- 2)

(2) “alienated” ,means transferred in so far as the rights of the State

Government to payment of rent or land revenue are concerned, wholly or
partially, to the ownership of any person;
1) Alienation and Alienated village :
Held that the land was not an “alienated village” for which it is not necessary that
ownership of Government with respect to land revenue must be transferred. In
this particular case the Kowl was only agriculture and as the grantee was to
consider himself a farmer, the village came under the operation of the code 35
Bom462 =12 Ind cas 369= 13 Bom LR 883.

2) Alienated Village- Survey-Settlement-Holders of Land-

Though the grant to the plaintiff was of the entire property in the soil, the lands in
question were still “alienated” within the meaning of section 3(20) of the Bombay
Land Revenue Code ; if the other requirements of the section are satisfied,
defendants (tenants) were entitled to the right of occupants in unalienated villages
by virtues of section 217 of the Code: 43 Bom 77=47 Ind Cas 745=20 Bom LR
887.
19
3) Sections 3(20) and 65- Alienation-Grant of a portion of the village with all rights
of Government and permanent lease of the rest Grantee, if entitled to enhanced non-
agricultural assessment- Ownership of foreshore :-

Held, that the grant was of all the revenues derivable from the village, except
abkari, and not merely the agricultural revenue and therefore the grant was of the
village itself, and consequently, the plaintiff was entitled to the royalty claimed by
him.
Held, also, that the grantee was entitled to erect any structure without the payment
of extra assessment to the Government irrespective of the terms of section 65 of
the Bombay Land Revenue Code and the Government was not entitled to levy any
non-agricultural assessment on these buildings.

Held, further, that though the presumption is that the Crown is entitled to
the foreshore unless it can be shown from any particular grant that the foreshore is
conveyed under it, that presumption was satisfactorily rebutted in this case by the
terms of the grant : AIR 1934 Bom 434=36 Bom LR 761=154 Ind Cas 278.
(Authority :- M.L Jindal)
3. “boundary mark” means any erection, whether of earth, stone or other material,
and also any hedge, unploughed ridge, or strip of ground, or other object whether natural
or artificial, set up, employed, or specified by a survey officer or revenue officer having
authority in that behalf, in order to designate the boundary of any division of land;
4. “building” means any structure, not being a farm building;
5. “building site” means a portion of land held for building purposes, whether any
building be actually erected thereupon or not, and includes the open ground or courtyard
enclosed by, or appurtenant to, any building erected thereupon;

1) Holder of Varkas land- A person who wants to claim the benefit of section 217 of
the Land Revenue Code must show that he was a “holder” within the meaning of
section 3 of the Code at the date of the Settlement. Mere user by rice lands
tenants of adjoining waste land with the leave and permission of the Inamdar does
not make them holders of Varkas land : 36 Bom 315=14 Ind Cas 473=14 Bom
LR 124.
20
2) Tenant under an occupant also included in the term “Holder”.- The plaintiff (as
Inamdar) had the royal share of revenue of a certain village, in which the
defendant was a permanent tenant of certain land. At the desire of the plaintiff,
the survey settlement was introduced into the village, when the plaintiff’s name
was entered as Khatedar or registered occupant of the land. The plaintiff next
sought to recover enhancement rent from the defendant. The latter in contesting
the claim relied on, among other things, section 217 of the Bombay Land
Revenue Code, 1879, and contended that he was liable to pay only the
Government rate of assessment levied on the land. This contention was
disallowed on the ground that the defendant was not a register occupant of the
land. On appeal, Held, that section 217 of the Bombay Land Revenue Code,
1879, was not restricted in its application to registered occupants only; it invested
“the holders of all lands” in alienated villages with the same rights and imposed
upon them the same Responsibilities in respect of the lands in their occupation
that occupants in unalienated villages had. The term

“Holder” as defined in section 3, clause (11) of the Code was wide enough to include
even a tenant who had entered into possession under an occupant : (1910) 34 Bom
686=12 Bom LR 707=7 Ind Cas 949.

6. “certified copy” of “certified extract” means a copy or extract, as the case may be,
certified in the manner prescribed by section 76 of the Indian Evidence Act, 1872;
7. “chavdi” means the place ordinarily used by a village officer for the transaction of
village business;
8. “estate” means any interest in lands and the aggregate of such interests vested in a
person or aggregate of persons capable of holding the same;
9. “farm building” means a structure erected on land assessed or held for the purpose
of agriculture for all or any of the following purposes connected with such land or any
other land belonging to or cultivated by the holder thereof namely :

a) for the storage of agricultural implements, manure or fodder,

b) for the storage of agricultural produce,
c) for sheltering cattle,
d) for residence of members of the family, servants or tenants of the holder, or
21
e) for any other purpose which is an integral part of his cultivating arrangement;

10.“gaothan” or “village site” means the land included within the site of a village,
town or city as determined by section 122;
11.“Government lessee” means a person holding land from Government under a
lease as provided by section 38;
12.“to hold land” or “to be a land holder or holder of land” means to be lawfully
in possession of land, whether such possession is actual or not;
13.“holding” means a portion of land held by a holder;
14.“improvement” in relation to a holding, means any work which adds materially
to the value of the holding which is suitable thereto and consistent with the purpose for
which it is held and which, if not executed on the holding, is either executed directly for
its benefit or is, after execution, made directly beneficial to it; and; subject to the
foregoing provisions, includes;

a) the construction of tanks, wells, water channels, embankments and other works
for storage, supply or distribution of water for agricultural purposes;
b) the construction of works for the drainage of land or for the protection of land
from floods, or from erosion or other damage from water;
c) the planting of trees and the reclaiming, clearing, enclosing, leveling or terracing
of land;
d) the erection of buildings on or in the vicinity of the holding, elsewhere than in the
gaothan required for the convenient or profitable use or occupation of the holding;
and
e) the renewal or reconstruction of any of the foregoing works, or alterations therein
or additions thereto; but does not include-

i) temporary wells and such water-channels, embankments, leveling, enclosures or

other works, or petty alterations in or repairs to such works, as are commonly
made by cultivators of the locality in the ordinary course of agriculture; or
ii) any work which substantially diminishes the value of any land wherever situated,
in the occupation of any other person, whether as occupant or tenant;

22
Explanation- A work which benefits several holdings may be deemed to be an
improvement with respect to each of such holdings;

15. “joint holders” or “joint occupants” means holders or occupants who hold land as co-
sharers, whether as co-sharers in a family undivided according to Hindu law or otherwise,
and whose shares are not divided by metes and bounds; and where land is held by joint
holders or joint occupants, “holder” or “occupant”, as the case may be, means all the joint
holders or joint occupants;
16. “land” includes benefits to arise out of land, and things attached to the earth,
or permanently fastened to anything attached to the earth, and also shares in, or charges
on the revenue or rent of villages, or other defined portions of territory;
17.“landlord” means a lessor;
18.“land records” means records maintained under the provisions of, or for the
purposes of this code and includes a copy of maps and plans of a final town planning
scheme, improvement scheme or a scheme of consolidation of holdings which has come
into force in any area under any law in force in ;the State and forwarded to any revenue
or survey officer under such law or otherwise;
19.“land revenue” means all sums and payments, in money received or legally
claimable by or on behalf of the State Government from any person on account of any
land or interest in or right exercisable over land held by or vested in him, under whatever
designation such sum may be payable and any cess or rate authorized by the State
Government under the

provisions of any law for the time being in force; and includes rent, lease money,
quit rent, judi payable by an inamdar or any other payment provided under any Act, rule,
contract or deed on account of any land’

20 “legal practitioner” has the meaing assigned to it in the Advocates Act, 1961;
21.“non-agricultural assessment” means the assessment fixed on any land under
the provisions of this Code or rules thereunder with reference to the use of the land for a
non-agricultural purpose;
22.“occupancy” means a portion of land held by an occupant;
23.“occupant” means a holder in actual possession of unalienated land, other than
a tenant or Government lessee; provided that, where a holder in actual possession is a
23
tenant, the land holder or the superior landlord, as the case may be, shall be deemed to be
the occupant;
24.“occupation” means possession;
25.“to occupy land” means to possess or to take possession of land;
26.“pardi land” means a cultivated land appertaining to houses within a village
site;
27.“population” in relation to any area means population as ascertained at the last
preceding census of which the relevant figures have been published;
28.“prescribed” means prescribed by rules made by the State Government under
this code;
29.“recognized agent” means a person authorized in writing by any party to a
proceeding under this Code to make appearances and applications and to do other acts on
his behalf in ;such proceedings;
30“relevant tenancy law” means-

a) in the Bombay area of the State of Maharashtra, the Bombay Tenancy and
Agricultural Lands Act, 1948;
b) in the Hyderabad area of the State of Maharashtra, the Hyderabad Tenancy and
Agricultural Lands Act, 1950 and
c) in the Vidarbha region of the State of Maharashtra, the Bombay Tenancy and
Agricultural Lands (Vidarbha Region) Conversion Tax, 1958.

31.“revenue officer” means every officer of any rank whatsoever appointed under
any of the provisions of this Code, and employed in or about the business of the land
revenue or of the surveys, assessment accounts, or records connected therewith;
32.“revenue year” means the year commencing on such date as the State
Government may, by notification in the Official Gazette, appoint;

Note :- The State Government has appointed the 1st day of August to be the date of
commencement of Revenue Year by Government Notification, Revenue and Forests
Department, No. UNF-1367 (a)-R, dated the 11th August 1967 (vide Appendix 3).

33.“saza” means a group of villages in taluka which is constituted a saza under

section 4;
24
 34.“Sub-Divisional Officer” means an Assistant or Deputy Collector who is
placed in charge of one or more sub-divisions of a district;
35.“sub-division of a survey number” means a portion of a survey number of
which ;the area and assessment are separately entered in the land records under an
indicative number subordinate to that of the survey number of which it is a portion;

36“survey mark” means, for the purposes of this Code, a mark erected for
purposes of cadastral survey of land;
37.“survey number” means a portion of land of which the area and assessment are
separately entered under an indicative number in the land records and includes
i) plots reconstituted under a final town planning scheme, improvement scheme or a
scheme of consolidation of holding which has come into force in any area under any law;
and
ii) in the districts of Nagpur, Wardha, Chandrapur and Bhandara any portion of land
entered in the land records under any indicative number known as the khasra
number;

38. “superior holder” except in chapter XIV MLR code means a land-holder entitled
to receive rent or land revenue from other land holders (called “inferior holders”) whether
he is accountable or not for such rent or land revenue, or any part thereof, to the State
Government; provided that, where land has been granted free of rent or land revenue,
subject to the rights of resumption in certain specified contingencies by a holder of
alienated land whose name is authorisedly entered as such in the land records, such
holder shall, with reference to the grantee, be deemed to be the superior holder of land so
granted by him, and the grantee shall, with reference to the grantor, be deemed to be the
inferior holder of such land, and for the purposes of sections 147, 151 and 152 of the
Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961, shall notwithstanding
anything herein after contained in the definition of the word “tenant”, be deemed to be
the tenant of such grantor;
39.“survey officer” means an officer appointed under, or in the manner provided
by, section 8,
40.“tenant” means a lessee, whether holding under an instrument, or under an oral
agreement, and includes a mortgagee of a tenant’s rights with possession; but does not
include a lessee holding directly under the State Government;
25
 41.“unoccupied land” means the land in a village other than the land held by an
occupant, a tenant or a Government lessee;
42. “urban area” means the area for the time being included within the limits of
any municipal corporation, municipality constituted under any law for the time being in
force or of any village or group of villages, which may be notified by the State Govt as
urban area, regard being made to the density of population and of buildings in the area
and the expression “non-urban area” shall be construed, accordingly;
43.“village” includes a town or city and all the land belonging to a village, town
or city;
44.“wada land” means an open land in village site used for tethering cattle or
storing crops or fodder, manure or other similar things.

26
 P A R T – II
CHAPTER ; 6
AGRICULTURAL LAND REVENUE : PROCEDURE FOR SURVEY AND
SETTLEMENT TOGETHER WITH ASSESSMENT/LEVY AND COLLECTION
OF LAND REVENUE:

6.1 Agricultural lands are subject to survey and settlement, in accordance with the
provisions in Chapter VI of Maharashtra Land Revenue Code, 1966, (Section 90
to 107) and rules made thereunder. Procedure of survey and settlement of land
revenue is briefly summarised below :

The area to be settled is first divided into zones, comprising a taluka or group of talukas
or portions thereof, which are contigeous and homogeneous in respect of (I) physical
configuration (ii) climate and rainfall, (iii) principal crops grown in the area and (iv) soil
characteristics (vide clause (h) of section 90 of Maharashtra Land Revenue Code).
Moreover other factors such as markets, communications, standard of husbandry,
population, supply of labour, agricultural resources wages, etc. mentioned in clause (b)
of sub-section (2) of section 94 of MLR code are to be taken into consideration where
necessary. The settlement officer, after ascertaining the average yield of crops, in the
same tract of land, has to arrive at the standard rate of assessment, with reference to any
particular class of land. However, the standard rate thus arrived, should not exceed one
twenty fifth of the average yield of crops per acre of that class of lands of sixteen annas
classification.

6.2 (a) The fees recoverable from Land holders for making sub-division of
agricultural lands in view of acquisition of rights in land or for any other reason
are fixed so as to cover the entire cost of measuring, necessary and mapping of
sub-divisions. The term ”entire cost” includes besides expenditure on pay and
allowances of staff and contingencies, amounts on account of leave salary and
pension contributions and supervision charges.

(b) Delay in conducting the survey, follow up action after survey, whether after
incurring expenditure on survey, or not, results in following consequences :
27
i) non-regularization of encroachments,
ii) non-raising demand and collection,
iii) Incorrect recovery of assessment levy and collection, if any, already levied,
iv) Correct finalization of assessments, levy demand, and collection.
v) Increase in “entire cost”,
vi) Non-maintenance of correct records of title deeds or records of rights.

6.3 The rules regarding classification of Lands from the point of view of
levying land revenue assessments are contained in Maharashtra Land Revenue
(Assessment and Settlement of Land Revenue Agricultural Lands) Rules, 1970.
The land in respect of which the settlement is directed to be made is divided into
zones and groups after taking into account the physical continuation of the zone,
climate of husbandry, population and supply of labour, agricultural resources,
wages and ordinary expenses of cultivating principal crops including the value of
labor in cultivating the land in terms of wages, the average yield is determined.
Then the Settlement Officer works out the average classification value separately
for each class of land from the survey records. Classification value means the
relative valuation of lands as recorded in the survey records having regard to its
soil, situation, water and other advantages. The average yield determined by him
as above will be considered to be the yield of the land of the classification value
equal to the average classification so worked out. He shall then estimate the yield
for land of 16 annas classification of each class of land by Rule of 3 and work out
the value of the yield per hectare per each class of land at the settlement price and
fix the standard rate of assessment for each of class of land in each group in
accordance with the provisions of Section 90 of Maharashtra Land Revenue Code,
1966 (Rules 6 of the Maharashtra Land Revenue Assessment and Settlement of
Land Revenue Agricultural Lands, Rules, 1970).For instance, if the average yield
of crops per hectare of land is ‘X’ and the average classification value is ‘Y’ then
the yield for land of sixteen annas classification will be x./y – x 16. Once the
settlement i.e. the results of the operation conducted in a zone to determine the
land revenue assessment, in the light of provisions mentioned in para (I) above, is
fixed, it (the term of settlement) remains in force for a period of thirty years after
which it continues to remain in force until the commencement of the term of a
28
 fresh settlement, (vide provisions in section 93 of the Code). In the year in which
a settlement is introduced, the difference between the old and new assessment of
all lands, on which the latter is more than the former, is remitted and the revised
assessment is levied from the next following year.
6.4 Assessment to be imposed on individual survey number is then determined in
accordance with the relative classification and value of the land and the
assessment of the amount to be paid as land revenue, under section 68 of the
Maharashtra Land Revenue Code, on all agricultural lands is made with the
person who is primarily responsible to the State Government for the same
(Section 69).
6.5 Under section 168 of the Maharashtra Land Revenue Code the occupant (or the
lessee in respect of unalienated land and the superior holder or tenant in respect of
alienated land) is liable to pay land revenue to Government, under the relevant
provisions of the Code, in respect of lands, held by such occupants (or tenants) in
accordance with the assessment settled on such lands.

Penalty for defaulter of Land Revenue

6.6 If any installment of Land revenue or any part thereof is not paid within one
month after the prescribed date, the Collector may in case of a wilful defaulter
impose penalty not exceeding twenty five per cent of the amount not so paid (
section 174 of the Code) provided that no such penalty shall be imposed for non
payment of any installment the payment of which is suspended by the order of the
State Govt.) in respect of the period during which the payment remained
suspended.
Recovery of the cost of issue of Demand notices to the defaulters

6.7 In respect of arrears of Land revenue dues, demand notices, as required under
Section 178 of the Code are issued to the defaulters, from whom the cost of
demand notices, as shown below, will be recovered, as arrears of land revenue
(Note 76, under clause (2) of section 178 of the Maharashtra Land Revenue
Code).

1) For dues not exceeding Rs. 25 Rs. 0.50

29
2) For dues over Rs.25 and not Rs. 1.00
exceeding Rs. 100
3) For dues exceeding Rs. 100 Rs. 1.50

While scrutinizing the records in ;the tahsil office, field parties have to ensure that
amount towards cost of demand notices, as given above, also recovered along with the
arrears of land revenue from the defaulters concerned.

Land Revenue includes Cess

6.8 Recovery of Local Cess, along with Land Revenue

According to definition in Section 2(19) of the Maharashtra Land Revenue Code

1966, ‘Land Revenue’ includes any cess or rate authorized by the State
Government. under the provisions of any law for the time being in force and also
includes premium, rent, lease money, Quit rent, Judi payable by an Inamdar or
any other payment provided under any Act, rule, contract or deed on account of
any land.

6.9 Levy of Zilla Parishad Cess on Land Revenue :

Panchayat Samiti’s Act 1961, a minimum cess of 20 paise on every rupee of land
revenue is leviable on land revenue in non-urban areas.
The Act provides that a Zilla Parishad can, with the approval of Government
increase the rate of this cess but such increased cess is leviable only within the
area under the jurisdiction of the Zilla Parishad concerned.
The Act does not provide that fractions of rupee in the amounts of land
revenue should be ignored for calculating the amounts of cess to be levied.

6.10 Under the Bombay Village Panchayat Act, 1958, Village Panchayat Cess
at ;the rate of 100 paise on every rupee of the sum payable to Government
as ordinary Land Revenue, in respect of the area within the jurisdiction of
Village Panchayat is levied with effect from 1/6/1959.
6.11 Z.P. and Panchayat Samiti Cess and Village Panchayat Cess leviable as
mentioned in the aforesaid paragraphs are also leviable in respect of non-
30
 agricultural assessment on lands used for non-agricultural purposes. The
cess is also leviable on royalty and water rates, etc. as these items are
classified as Land Revenue.
6.12 Increased Land Revenue and Special assessment :

Consequent upon enactment of Maharashtra Increase of Land Revenue and

Special Assessment Act, 1974, increase of land revenue and special assessment
has been introduced for the first time with effect from 1/8/1974, as per rates
specified below,
(section 3 of the said Act), on the ‘total land revenue’-

Where the amount of “total land Rate of increase

revenue” payable
i) Does not exceed Rs. 75 Nil
ii) Rs. 75 to 100 25% of such amount as in excess of
Rs. 75.
iii) Rs. 101 to 200 Rs. 6.25 + 50% of such amount as in
excess of Rs. 100/-
iv) Rs. 201 to 500 Rs. 56.25 + Rs. 100% of such amount
as in excess of Rs. 200
v) Rs. 501 onwards Rs. 356.25 + 150% of such amount as
in excess of Rs. 500.

“Total Land Revenue” means the aggregate of the amounts of ordinary land
revenue and of local cess (if any) payable by a person, per annum, in respect of
agricultural land, local cess, Zilla Parishad Cess and Village Panchayat Cess leviable
from time to time (Section 2(1) (a) of the Maharashtra Increase of Land Revenue and
Special Assessment Act 1974).

6.13 (i) The Special Assessment on agricultural lands which was first introduced
as per Maharashtra Education (Cess) Act, 1962 on all agricultural lands, on which
commercial crops are raised has been increased from 1/8/1974, at the following rates,
under section 4 of the ‘Maharashtra Increase of Land Revenue and Special Assessment
Act, 1974’.
31
 Where the amount of special Rate of increase
assessment payable
a) Does not exceed Rs. 200 Nil
b) Exceeds Rs. 200 but does not exceed 25% of such amount as in excess of
Rs. 500 Rs. 200
c) Exceeds Rs. 500 but does not exceed Rs. 75 plus 50% of such amount as in
Rs. 1000 excess of Rs. 500
d) Exceeds Rs. 1000 but does not Rs. 325 plus 100% of such amount as
exceed Rs. 2000 in excess of Rs. 1000
e) Exceeds Rs. 2000 Rs. 1325 plus 150% of such amount as
in excess of Rs. 2000.

(ii) The rates of special assessment, leviable from time to time on commercial crops,
for the purpose of ‘Education Cess’ are as follows:
Particulars of (A) (B) (C)
Commercial crop Rates from Rates from Rates from
1/8/1966 1/8/1974 1/8/1976
Rs. Rs. Rs.
i) Sugarcane grown on Rs. 50 per acre 187.50 per 190.00 per
land perennially hectare hectare.
irrigated.
ii) Sugarcane in any other 30 per acre 112.50 per 110 per hectare
land hectare
iii) Irrigated cotton (except 10 per acre 37.50 per 40 per hectare
H-4 seeds). hectare
iv) H-4 Cotton seed --- 112.50 per 110 per hectare
hectare
v) Hybrid Jawar seed --- 37.50 per 40 per hectare.
hectare
vi) Hybrid Bajra seed --- 37.50 per 40 per hectare
hectare
vii) Irrigated Ground nut 10 per acre 37.50 per 40 per hectare

32
 hectare
viii) Betal leaves 50 per acre 187.50 per 190 per hectare
hectare
ix) Citrus fruit 20 per acre 75.00 per 80 per hectare
hectare
x) Bananas 30 per acre 112.50 per 110 per hectare
hectare
xi) Grape 100 per acre 375.00 per 380 per hectare
hectare
xii) Chikkus 20 per acre 75 per hectare 80 per hectare
xiii) Tamarind --- 375 per hectare 380 per hectare
xiv) Arecanut --- 300 per hectare 300 per hectare
xv) Tobacco --- 125 per hectare 130 per hectare

A) Maharashtra Education Cess Act, 1962.

B) Maharashtra Education Cess Act, 1962 (Schedule B).
C) Maharashtra Amendment Act L III of 1976.

6.14 The basis of levy of Increased Land Revenue and Special assessment, as
introduced with effect from 1/9/1974, in the Maharashtra Increase of Land Revenue and
Special Assessment Act No. XX of 1974’ has been modified by enactment of
Maharashtra Tax Acts (Amendment) Act, 1975 according to which, increase in land
revenue payable by a holder is linked with his holding, (Section 4 of the Schedule ‘C’ of
the Government. Gazette dated 12/6/75). The increase in land revenue, on the basis of
holding, to be recovered with effect from 1/8/1975 is as follows :

Particulars Rate of Increased Land Revenue

Where holding consists of land equal
to (the sum total of all pieces of land
held by a person in the State should be
taken into account for the purpose of
the land held by him ):-
i) 8 hectares or more but less than 12 50% of original land revenue

33
 hectares. payable in respect of such
holdings.
ii) 12 hectares or more. 100% of original land revenue in
respect of such holdings.
Here 50% or 100% Increase is to
be calculated on ‘original land
revenue’ only i.e. excluding cess,
as the definition of ‘total land
revenue’, contained in section 2(I)
(a) of the ‘Maharashtra Increase of
Land Revenue and Special
Assessment Act, 1974’, has been
deleted, by the amended
‘Maharashtra Tax Acts
(Amendment) Act, 1975’.

6.15 Employment Guarantee Cess-

As per section 6(B)(b) of the Maharashtra Tax Acts (Amendment) Act, 1975,
special assessment is required to be levied on all agricultural lands in the State, on
which irrigated crops are raised, by any water, other than rained water, at the rate
of Rs. 25 per hectare, with effect from 1/8/1975. This special assessment which is
termed as ‘Employment Guarantee Cess’, is to be levied by ignoring 0.4 hectare
of land in any holding on which such irrigated crops are raised and on the
remaining area a sum of Rs. 25 per hectare is leviable as Employment Guarantee
Cess.

6.16 Assessment of Agricultural Lands in merged territories and enclaves

a) Under the Hyderabad Land (Special Assessment) Act, 1952, applicable to areas
transferred from ex Hyderabad State to ex-Bombay State, levy on the basis of
additional special assessment is leviable on lands in specified talukas mentioned
in Schedule to the Act where resettlement is due from 1/6/1952.

34
 The special assessment is to continue until the assessments in pursuance of
resettlement operations are imposed. The rate of such assessment is two annas and one
anna per rupee of land revenue for dry and wet lands, respectively, provided that the
special assessment shall not be levied on the former “non-Divani Areas” i.e. areas, where
administration was being governed by individuals or Jagirdars, instead of by
Government.

The special assessment shall not be levied on such lands of the talukas mentioned
in the Schedule which have been resettled at any time within the last 30 years, before the
1st day of June 1952 and the reassessed amount has already been imposed on these lands.

b) As per rule 19-A in Chapter III-A of the Bombay Land Revenue Rules, 1921, the
rate of assessment of Land revenue of agricultural lands in the merged territories
and the Hyderabad enclaves, included in and forming part of the State of
Maharashtra shall be the rate prevailing in these territories, immediately before
the date of coming into operation of this rule, until a settlement of land revenue of
such land is made under the provisions of Chapter VIII-A of the Code (Bombay
Land Revenue Code) or the rate of assessment in respect of such land is fixed
under section 52 of the Bombay Land Revenue Code, whichever event occurs
earlier.
6.17 Disposal of Government land for agricultural purpose is governed by
rules contained in

Part III of the Maharashtra Land Revenue (Disposal of Government lands) Rules,
1971. All lands (under this part) are subject to payment of occupancy price and Land
revenue. Whole occupancy price is calculated in accordance with rule 14 of the Rules.
The amount of land revenue is fixed by the Collector under Section 68 of the MLR Code
1966. The detailed procedure to be adopted in the manner of fixation of land revenue in
surveyed as well as in unsurveyed villages is contained in rule 14 of the Maharashtra
Land Revenue (Assessment and Settlement of Land Revenue of Agricultural Lands)
Rules, 1970. In case of virgin lands, liability to pay land revenue arises after the first 3
years.

35
 CHAPTER – 7
Reduction, suspension and Remission of Land Revenue :
7.1 The State Government may grant reduction, suspension or remission in whole or
in part of land revenue in any area due to failure of crops, floods, or any other
natural calamity or for any reason whatsoever (Section 78 of Maharashtra Land
Revenue Code, 1966). The procedure for granting and extent of reduction,
suspension and remission are laid down in the Maharashtra Land Revenue
(Reduction, Suspension and Remission) Rules, 1970.
7.2 Reduction : If during the currency of any settlement, there is such physical
deterioration of the soil in any holding, the holder may apply to the Survey
Officer for reduction of the assessment. The Survey Officer after making such
inquiries as are necessary may by order sanction reduction in the annual
assessment, the amount not exceeding Rs. 200. All cases where reduction
proposed exceeds Rs. 200 sanction of Government is necessary.( Notification
No.CON 3489/16873/(CR-64357)/LI dt.04-07-1997).

The reduction takes effect from the revenue year next following the date of order
and shall remain in force until the commencement of the term of fresh settlement.

7.3 Suspension : The Collector, on making local enquiries and ascertaining

the degree of crop failure in any tract, may suspend-

a) the whole of the land revenue payable by any person if the estimated
paise valuation of crops is 50% or below of the normal yield.
b) Provided that, if such tract forms part of the areas declared as drought
prone areas by the state Govt. Collector may grant remission of land
revenue if the estimated paise valuation of crops in such tract is 60% or
below of the normal yield.

Suspension granted under these rules is conditional upon the payment of the amount of
land revenue which is not suspended. Such land revenue shall not ordinarily be

36
collected until the harvest of the crops in subsequent years has been reaped in the affected
tract.
7.4 Recovery of suspended land revenue :
If the harvest of crops referred to above in any subsequent year is of the anna
valuation specified in column 1, the current land revenue payable and the
suspended land revenue payable shall be paid as follows :

Anna Valuation of Proportion of

recoverable
land revenue
Current Suspended land revenue
1. 12 annas and more Full Such portion as limited
to1/2 current land
revenue.
2. 9 annas and more but less than Full Such portion as limited to
12 annas. ½ current land revenue.
3. 6 annas and more but less than 9 Full Nil
annas
4. More than 4 annas but less than Half Nil
6 annas
5. Upto four annas Nil Nil

(Rule 8 of the Maharashtra Land Revenue (Reduction suspension and remission)

Rules 1970 as amended by Gazette . Notification dated 8/1/1975).

7.5. For the word “Anewari” the work “paisewari” has been substituted by
Maharashtra Land Revenue (Reduction, Suspension, and Remission)
Amendment Rules 1980, according to which land revenue payable is
remitted, if estimated paise valuation of crops is 50 per cent or less of the
normal yield in the tract other than drought prone areas and 60

37
 percent or less of the normal yield if such tract is declared as drought-
prone areas by Government.

7.6 Remission of Land Revenue :

All suspended arrears of land revenue which are either in excess of two years land
revenue or more than three years old, shall ordinarily be remitted by the Collector,
irrespective or monetary condition of any holder, the oldest arrears being remitted first
(Rule 9 ibid.).
7.7 Relief in Local Calamities :

When the Collector on enquiries made, is satisfied that in any year, in any tract
there has been a local calamity (such as loss of or damage to crops or other property in
any locality in any revenue year, occasioned by hail storm, or fire or caused by locusts or
by thefts or mischief by unknown persons and inclusive of failure of crops by floods,
etc.), he may after taking into account the resources of the owner of the crops, grant
relief, under rule 11 of the Maharashtra Land Revenue Rules, 1970, provided that the
relief by way of remission, in any district in any year shall not exceed one thousand
rupees.
Provided further, that the Collector may with the previous sanction of the State
Govt. grant such remission in any district in any year an amount exceeding one thousand
rupees.
7.8 While scrutinizing the proposals and orders, relating to grant of
suspension, reduction or remission of land revenue, in the Tahsil office or in Collectorate,
as the case may be , it should be ensured that I) full suspension of land revenue is granted
only to such villages the annewari of which is four annas or less, ii) half suspension of
land revenue is granted to such villages where annewari is more than four annas but less
than six annas iii) such portion of land revenue not suspended is recovered properly and
promptly according to the provisions contained in Rule 8 of the Maharashtra Land
Revenue (Reduction, Suspension and Remission) Rules 1970.

7.9 Even though agricultural land revenue is suspended or land revenue

remitted in accordance with the provisions contained in Rules 8 and 9 of the Maharashtra
Land Revenue (Reduction, Suspension and remission ) Rules 1970, non

38
agricultural land revenue which is not dependent upon the paisewari on crop failure,
stands recoverable.

7.10 Local cess, such as zilla parishad and Village Panchayat Cess etc. which is
linked with the land revenue, should not be treated as suspended or remitted as a matter
of course, but a specific resolution from Zilla Parishad concerned, duly approved by
Government in Revenue and Forests .Department . will be required for suspension or/and
remission of such cess (Instructions issued by Government of Maharashtra, Revenue and
Forests Department in the letter No. LFE – 1075/15743-XX dated 11/12-9-75).

7.11 Maharashtra Land Revenue Remission order 1977 :

Government of Maharashtra have granted remission on whole of the agricultural

land revenue payable by every holder of land, whose liability to pay to the State
Government such land revenue in respect of his entire holding in any of the areas
of the State of Maharashtra, during the year 1977-78 or during the revenue years
thereafter, does not exceed rupees five in the aggregate. (Government of
Maharashtra Rev. and Forests Department order No. REV.1077/16447/L-3 dated
22 December, 1977).

7.12 Government of Maharashtra have granted remission in the whole of

agricultural land revenue payable to the State Government by every holder;

i) Whose entire holding in the State of Maharashtra does not exceed 3 hectares of
agricultural land and no part thereof is under irrigation by any mode,
ii) whose liability to pay the land revenue in respect of his entire holding in the state
(no part of which is under irrigation) during revenue year 1978-79 or during the
revenue years thereafter, is more than Rs. 5 but does not exceed Rs. 10 in the
aggregate. (Government of Maharashtra Revenue and Forest Department order
No. REV/1078/33338/L-3 dated 8-5-79). This is applicable from the year 1978-
79.

39
 CHAPTER–8

Non- agricultural assessment procedure and scope :

8.1 General : Non agricultural assessment, fixed for lands and in force
immediately before the commencement of the Maharashtra Land Revenue Code, 1966, is
deemed to have been fixed under the provisions of the said code and such assessment
would continue to remain in force during the whole of the period for which it was fixed
and thereafter until it is revised. The non-agricultural assessment fixed after the
commencement of the code, i.e. with effect from (August, 1967) will, however, remain in
force for a period of fifteen years from the actual date of the commencement of the non-
agricultural use and on expiry of such guarantee period it will be liable for revision, but
till it is revised it shall continue to be in force. Thus the revision of non-agricultural
assessment actually takes effect from the date of expiry of the guarantee period of the old
assessment or from the date of the order of the revision, whichever is later. Retrospective
revision of non agricultural assessment was not allowed under the provision of the
Maharashtra Land Revenue Code, 1966 (Government letter No. RB-Desk-2/LNA- 846
dated 8-5-1978). However, consequent upon enactment of Maharashtra Act, No VIII of
1979, notified in Gazette of 31st March, 1979. Retrospective revision is permissible.

8.2 Procedure of assessment :

i) Non urban areas – Under Section 110 of the Maharashtra Land Revenue Code the
Collector has to divide all the villages in the District in non-urban areas into two
classes, (by a notification in the official Gazette, subject to approval of
Commissioner) i.e. class I and Class – II on the basis of the market values of
lands. (1 A) Notwithstanding anything contained in Sub Section (1) any areas
of village or group of villages which has been notified as an “urban area”
UNDER Cl. (42) of section 2 shall on the date of coming into force of MLR
Code (amendment) Act 2003, ceases to the such urban area, and shall from the
said date, be deemed to the Cl. Village for the purposes of assessment of non
agricultural assessment of such village under this code.

40
 Provided that nothing contained in sub section (14) shall in any way affect
the liability of an assessee for payment of any tax which has already been
assessed and accrued prior to the said date in respect of such notified urban area.
Provided further that, notwithstanding anything contained in sub section (1A) any
tax already levied and before the said date in respect of such notified urban area,
shall not be referred. Under clause (2) of Section 110 of the code, the Collector
has to assess lands falling in Class-I villages according to the non-agricultural
purposes, for which they are used, at a rate, not exceeding two paise per square
meter per year and those falling in Class-II villages, at the rate not exceeding one
paise per square meter per year, regard being made to the market value of lands
used for the non-agricultural purpose, so however, that the assessment so fixed is
not less than the agricultural assessment which may be leviable on such lands.

ii) Urban areas – As regards the non-agricultural assessment in urban areas, the
Collector has to divide urban area into blocks on the basis of the market value of
lands, due regard being had to the situation of the lands, the non agricultural
purposes for which they are used, and the advantages and disadvantages attaching
thereto as per provisions in Section III of the Maharashtra Land Revenue Code.
However, the non-agricultural assessment on lands in each block in an urban area,
is not to exceed three per cent of the full market value thereof when used as
building site. Under Section 113(1), the Collector (with the approval of the State
Government) has to fix the rate of the non-agricultural assessment per square
meter of land in each block in an urban area, at such percentage of the full market
value of such land as may be prescribed. The standard rate of non-agricultural
assessment is to be equal to 1.25 percent of the full market value of the land. The
rate so fixed is called “The standard rate of non-agricultural assessment”. The
standard rate of non-agricultural assessment so fixed is to remain in force for a
period of five years (Section 113(2)) and thereafter would be deemed to be in
force, until ;such rate is revised later on (provided that the first such guaranteed
period shall commence on the first day of August 1979 and shall expire. On 31st
July 1991, (provided further that, the State Govt. may, extend such guaranteed
period for all or any block in, any urban area so however that such extended
period shall not be more than five years)

41
2-A) Where the standard rate of non agricultural assessment in any block in any urban
area has been fixed or revised before the first day of August 1979, such standard rate
shall be deemed to be due for revision, at any time on or after the 1st day of August 1979;
and then such standard rate if so revised shall be deemed to have come into force with
effect from the 1st day of August 1979 on which date the first guaranteed period
commenced and would remain in force upto the 31st July 1991 and would then be subject
to further revision under, sub section (2-B) from time to time.
(2-B) Where the standard rate of non agricultural assessment is fixed or revised for any
guaranteed, period the same shall be revised as soon as possible after the commencement
of the next guaranteed period and such revised rate shall be deemed to have come into
force with effect from the commencement of such next guaranteed period.
(2-C) Notwithstanding anything contained in Sub Section (1) or the Rule made
thereunder, the rates of non agricultural assessment for the guaranteed period of five
years commencing from the 1st August 2001 shall not exceed.
a) three times the non agricultural assessment rate of 1991,(i.e. prevailing as on 31-
7-1991) in a municipal corporation area and two times of such rate in the area of
the rest of the State, for the cases which are already assessed for non agricultural
purposes, and
b) Six times the non agricultural assessment rate of 1991, (i.e. prevailing as on 31-7-
1991) in a Municipal corporation area and four times of such rate in the area of
the rest of the State for the cases to be assessed for non agricultural purposes)
(Sub section 2-C was inserted by MAH-9 of 2002)
iii) The standard rate of non Agricultural assessment fixed or revised as aforesaid
shall be published in the official Gazette and in such other manner as may be prescribed
before they are brought into force.
The full market value of non- agricultural lands in urban area in a block shall be
estimated on the basis of sales, leases, and awards under Land Acquisition Act,
1894 which have taken place or declared, as the case may be, in the block during
the period of fifteen years immediately preceding the year in which the standard
rate of non-agricultural assessment of lands in the block is to be fixed, in
accordance with the principles laid down under Rule 15 of Rules regarding
conversion of use of land and Non Agricultural assessment, 1969.

8.3 Term of Assessment fixed under Sections 110 and 114 :

42
i) Prior to 31st March, 1979, the non-agricultural assessment fixed according to the
provisions of Sections 110 and 114 of the Maharashtra Land Revenue Code, 1966, was
guaranteed for 15 years from the commencement of the non-agricultural use. However
due to enactment of Maharashtra Land Revenue Code, (Amendment) Act 1979 on 31st
March 1979 such non-agricultural assessment, fixed on individual plots, on or after
(March, 1979) will remain in force till the duration of the “guaranteed period” only. In
other words, the non-agricultural use of the lands, commenced during the “guaranteed
period” will remain in force till the duration of the “guaranteed period”. For example, the
non-agricultural assessment in respect of the land, in respect of which, non-agricultural
use started in 1988 shall remain in force till 31st July 1991 and shall be liable to be
revised on 1st August 1991. Since the first ‘guaranteed period’ is to start from 1st August
1979 and since the standard rate of non-agricultural assessment in respect of lands for
which non-agricultural permissions have been granted or deemed to have been granted
with effect from 31st March 1979 or unauthorized agricultural is regularized under
Section 47(b) of the Maharashtra Land Revenue Code, 1966, the non-agricultural
assessment shall remain in force till 31st July 1979 only and thereafter it shall be liable to
be revised. However, where the non- agricultural assessment has been fixed before 31st
March, 1979, and where the guaranteed period is specified in the order or in the Sanad,
then in such cases, the period mentioned in the order or in the sanad will be honoured. In
such cases, the non-agricultural assessment shall become liable to revision only after the
expiry of the specified guaranteed period. For example, if the non-agricultural
permission is granted and the non-agricultural use was started in January, 1970, and if
non-agricultural assessment has been guaranteed for 15 years in the order or sanad issued,
the assessment shall be liable to revision on 1st August 1984 only at the revised standard
rate in force during the ‘guaranteed period’ of 1st August 1979 to 31st July 1991 and
thereafter on 1st August 1991 at the revised rate applicable from the date.

ii) Under proviso to section 116, the amount of non- agricultural assessment, after
revision, will however, be limited to two times the previous non-agricultural assessment,
if the land is used for residential purpose and to six times the previous non-agricultural
assessment if the land is used for any other non-agricultural purpose (Government.
Circular R&F.D.BN.A.A.-1079/10903-L-2 dated 10/5/79). Sec. 116 was deleted by
amendment Act No. IX of 2002 M.C.G. Pt. VIII Ext. Pg. 36 dt. 5/1/2002 wef. 1/8/2001.
43
Non – Commencement of Non- Agricultural Use :

For non-commencement of the permitted non-agricultural use, within the

prescribed period, the existing law does not provide for any penalty, other than the
automatic cancellation of the non- agricultural permission.

Non- agricultural permission is not an order but is merely a permission. There is,
therefore, no question of defying it. Non – utilization does not cause any loss to
Government. It does not seem necessary to penalise such grantee.

(G.L.R. & FD No. NAF 3167 (63911/L-2 dt. 9/1/1978 to the Collector, Dhule).

Commencement of Non-Agricultural Use :

Merely by grant of non- agricultural permission, an agricultural land does not

ipsofacto become non-agricultural. For that purpose, the non- agricultural use of the
lands permitted to be converted should actually commence or start. What constitutes
commencement of non-agricultural use is not provided in Maharashtra Land Revenue
Code, 1966. It is a question of fact and interpretation. If some positive action is taken by
the applicant after obtaining non-agricultural permission such as leveling it, developing it
or reclaiming it and laying it into plots and constructing road, drainage etc. as provided in
the layout and thereby changing the character of the lands so as to render it unfit for
cultivation it can reasonably be presumed that non-agricultural use has started
(Government. Circular No. R.&F.D.No. UNF-1967/I-R dated 9th March 1970).

8.4 : Rate of Non-Agricultural Assessment in Urban Area :

1. Subject to the provisions of Section 114 of the Maharashtra Land Revenue Code
the rate of assessment in respect of lands in urban areas :-

a) used for purpose of residential building shall be the standard rate of non-
agricultural assessment.

44
b) Used for the purpose of Industry, shall be one and one half times of the standard
rate of non agricultural assessment.
c) Used for the purpose of commerce, shall be thrice the standard rate of non
agricultural assessment in the areas within the limits of all the other Municipal
Corporations excluding the area of the Mumbai City District in the Mumbai
Municipal Corporation area and twice the standard rate of non agricultural
assessment in the remaining urban areas of the State.
d) Used for any other non-agricultural purpose shall be fixed by the Collector at a
rate not less than the standard rate of non-agricultural assessment and not
exceeding one and one-half times that of standard rate, regard being had to the
situation and special advantage or disadvantage attaching to such lands.

2) Where any land is used for any non agricultural purposes for a period of six
months or less, the non agricultural assessment shall be half of that fixed for land used for
the non agricultural purposes.

3) Notwithstanding any thing in this Section, the Collector may in r/o any land in a
block fix the non agricultural assessment for that land at a rate not less than 75%
of the rate fixed in sub sn.(1) but not exceeding by twenty five percent, the rate so
fixed for particular use, regard being had to the situation, and special advantages
or disadvantages attaching to such land.

8.5 : Under Section 117 of the Maharashtra Land Revenue Code, 1966, Lands used for
the following purposes, shall be exempt from the payment of the non- agricultural
assessment, namely :-

i) Lands used by an agriculturist for an occupation, subsidiary or ancillary to

agriculture, such as, the erection of sheds for handlooms, poultry farming or
gardening, or such other occupations, as the State Government may specifically
mention, such as lands used by agriculturist for extracting or canning fruit juice,
gur making, oil pressing, cotton ginning, paddy husking or other similar purposes
from the produce of his own field should be considered as occupations subsidiary
or ancillary to agriculture; storing manure is an agricultural purpose.

45
 “Farm buildings” meaning the residence of a cultivator or his tenants and his
barns and cattlesheds, etc. are agricultural uses. The point is that such farm
building must be on the holder’s own land and form an integral part of his
cultivating arrangements. Agriculture means the ploughing, sowing, tilling and
reaping of some crop or produce for profit. Letting a few trees or flowers grown
for pleasure is not agriculture. There are some gardens in which, roses etc. can be
seen cultivated for the market, which is certainly agricultural. A dairy farm is
held to be agricultural. Storing manure is an agricultural purpose, but a co-
operative dairy is non-agricultural. Cane crushing and gur boiling are essential to
cane cultivation and are not non-agricultural uses (vide commentary at page 97
under rule 80-B of Bombay L.R. Rules 1921 by Shri F.G.H. Anderson).

The use of land for stock- breeding should be considered an agricultural

use in rural areas. Lands used for the purpose of horse-breeding stabling horses
and their exercise and ancillary matters should accordingly be treated as used for
agriculture and assessed.

Here animals are merely stalled in urban areas and all but a negligible part of their
feeding stuff are imported the use is non-agricultural. In case of doubt, the use of
the lands should be treated as agricultural (G.R.R. & F.S. No. LNA 1059/24504-C
dated 24/9/1965).

ii) Lands used for purposes connected with the disposal of dead.(Burial Grounds or
Burning Ghats)
iii) Lands solely occupied and used for public worship and which were exempt from
payment of land revenue by custom, grant or otherwise, before the
commencement of the M.L.R. Code, 1966.
iv) Lands used for an educational or charitable purpose, the benefit of which is open
to all citizens without distinction of religion, race, caste, place of birth or any of
them.
v) Lands used for any other public purpose, which the State Govt. may, by rules
make under the M.L.R. Code, to be exempt, for such period and subject to
such conditions as may be specified therein.
46
 vi) Such agricultural lands (outside a gaothan) in a non-urban area converted to
non-agricultural use for purpose of residential buildings (clause (b) under
Section 123 of the Code). As the State Govt. may, by notification in the
official Gazette, specify.

8.6: During the scrutiny of the local audit of land revenue, audit has to satisfy itself,
that the rates of non-agricultural assessment so fixed by the Collector as per procedure
mentioned above, in respect of all urban areas and non-urban areas, are correct and
assessment of non-agricultural assessment is levied and recovered, in all cases of non-
agricultural use of lands at correct rates, from the date of use of said lands, unless such
lands are exempt from non-agricultural assessment user specific provisions in the code
and rules.

8.7: Under Section 44 of the Maharashtra Land Revenue Code 1966, each occupant of
land has to apply in writing to the Collector for conversion of use of land from one
purpose to another. In case a permission is granted or deemed to have been granted
under Section 44(2) and (3) of the Code, such person will have to inform the Tahsildar in
writing through the village officers the date, on which the change of user of land
commenced. If, however, the person fails to inform the Tahsildar, within the specified
period (30 days from date of use commenced, he shall be liable to pay in addition to the
non-agricultural assessment such fine as the Collector may direct but not exceeding five
hundred rupees.

8.8: Lands used for any of the following purposes shall also be exempt from non-
agricultural assessment.

i) Hospitals,
ii) Hostels,
iii) Play-grounds
iv) Parks and Gardens
v) Office premises of local authorities,
vi) Gymnasium or

47
 vii) Roads, paths and lanes, set apart in layouts, meant for the benefit of all
citizens without distinction of religious, race, caste, sex, place of birth or any
of them and yielding no profits to private individuals or to any person.
viii) In the case of building sites hold in co-op. Housing Societies or the Housing
Board, which are not built upon, no non agricultural assessment shall be
levied for the three years subsequent to the date on which possession of lands
was taken or till the date on which non agricultural use of the lands begins
which ever is later.

(Rule 22(1) and (2) of Maharashtra Land Revenue (Conversion of use of land and
N.A.A.) Rules 1969).

PENALTIES ;

8.9: If any land held or assessed for one purpose is used for another purpose-
a) Without obtaining permission of the Collector under Section 44 of the Code or
b) In contravention of any of the conditions attached to the grant of permission
for such land, the holder of the land is liable to the one or more of the
following penalties: -

i) To pay non-agricultural assessment on the land, leviable with reference to the

altered use.
ii) To pay in addition to the non-agricultural assessment, such fine, as the
Collector may direct.
iii) To restore the land to its original use, and
iv) To impose on such person a penalty not exceeding three hundred rupees and a
further penalty not exceeding thirty rupees for each day, during which the
contravention persisted.

If any land is used unauthorisedly in contravention of the provisions of

Section 44, the Collector may require the holder of the land to stop such
unauthorized use and ask him to pay the non-agricultural assessment on the
land, with reference to the altered use for the entire period of such
unauthorized use, and such fine, not more than forty times the non-agricultural
48
 assessment on the land, leviable with reference to the unauthorized altered use
under the provisions of the Maharashtra Land Revenue (conversion of use of
land and N.A.A. ) Rules, 1969.

Unauthorized non-agricultural use or altered use of land, in contravention of the

provisions of Section 44 is required to be ordinarily regularized by the Collector, if the
holder of the land so desires subject to the following conditions: -

i) that the holder shall pay non-agricultural assessment on the land, with
reference to the altered use, since the commencement of that use, if it is not
already paid under Rule 8 ibid.
ii) that the holder shall pay such fine not exceeding forty times the non-
agricultural assessment on the land, if it is not already paid under Rule 8 ibid.

8.10: (I) According to the provisions contained in clause (b) of Section 123 of
Maharashtra Land Revenue Code 1966 residential building sites, situated within the sites
of non-urban areas are exempt from land revenue. It further means that the residential
building sites situated within ‘gaothan’ in non non-urban areas, are only exempt, (vide
also para 7 in Revenue book Circular 17 published in M.L.R. Manual Vol. II). It is
therefore, evident that no non- agricultural assessment is to be levied on lands in non-
urban areas, in village sites i.e. ‘gaothans’ used for residential purposes. In these areas
(i.e. in non-urban areas) the non-agricultural assessment has to be levied only on lands,
which are used for industrial, commercial or other non-agricultural purposes, other than
residential. While auditing the village records, relating to non-agricultural assessment,
audit has to satisfy itself that in all areas of lands in gaothan area of villages, the non-
agricultural assessment is required to be fixed if such areas are used for non-agricultural
purposes, other than residential. All cases of omissions and commissions noticed during
the test check of the village records should be brought out with suitable comments.

ii) Where land is used for non-agricultural purpose, for a period of six months or less
the non-agricultural assessment has to be charged at half of that, fixed for lands used for
non-agricultural purposes, (vide rule 27 of R.B. Circular No. 17 in M.L.R. Manual
Vol.II)

49
iii) Non-agricultural assessment should not be levied on building sites, held by Co-
operative Housing Societies or Housing Boards which are not built upon for a period of
three years subsequent to the date on which possession was taken or till the date on which
non-agricultural use of the land begins whichever is later (Rule 22(3) of the Rules called
the ‘MLR Rules 1969’).

iv) Under Section 115 of the Maharashtra Land Revenue Code, 1966, non –
agricultural assessment is required to be levied with effect from the date on which any
land is actually used for non-agricultural purpose. The Section 44 of the code requires
the holder of land to apply in the prescribed form for conversion of the agricultural lands
for non-agricultural purposes and the Collector has to decide such application either by
granting the permission or refusing it. A permission to convert the agricultural land into
non-agricultural purpose is generally granted on conditions, which require inter-alia that
the applicant shall develop the land and construct the structure in accordance with the
plans approved either by planning authority or by the village Panchayat as the case may
be. It is evident that the condition of the land does not change, merely because the non-
agricultural permission is granted by Collector. While granting permission conditions are
imposed to layout the land in suitable plots of standard sizes, with necessary access etc.
Even the layout is approved the character of lands remains the same. Merely by grant of
non-agricultural permission, an agricultural land does not become non-agricultural,
unless the non-agricultural use of the lands, permitted to be converted actually
commenced or started. For that purpose positive action is required to be taken by
applicant after obtaining non-agricultural permission. Action in raising and leveling the
land, developing it or reclaiming it, laying it out into plots and constructing road,
drainage, etc. as provided in the layout, thereby, changing the character of the land is
necessary as to render it unfit for cultivation. In such cases, the land can be subjected to
payment of non-agricultural assessment, although no buildings are actually constructed or
no construction of structures started therein (para40 of Revenue Book Circular No. 17 in
M.L.R. Manual Vol. II).

v) Portions of Municipal street ends when sold or leased for purposes of

advertisement, etc. should be considered as used ‘profitably’ and non-agricultural
assessment should be levied on entire area covered by the pillars and hanging boards
(Para 41 of Revenue Book Circular No. 17 in M.L.R. Manual, Vol. II).
50
vi) Non-agricultural assessment should be levied only on such portions of the area as
are actually used for non-agricultural purpose by the State Road Transport Corporation
on the following principles :-

Non-Agricultural assessment at current rates should be charged on such portions

of lands as are properly demarcated by means of fencing or compound and used for non-
agricultural purposes connected with the various activities such as Bus stands, Garages,
Depots etc.

The remaining areas which may be lying vacant should be charged agricultural
assessment, till such areas are put to non-agricultural user, with the prior permission of
Revenue authorities, provided that such areas are also properly demarcated by means of
fencing or compound.

vii) ‘Pardi Land’ is a cultivable land appertaining to houses within the village site,
(Section 2(26) of the M.L.R. Code). Such ‘Pardi Land’, which is less than 1/4th of an
acre and used for agricultural purpose or for a purpose subsidiary or ancillary to
agriculture, is exempt from payment of land revenue. If however, such land is used for
any purpose other than agriculture, the holder thereof is liable to the payment of non-
agricultural assessment and fine, if any, under Sections 44,45 and 67 of the code, (para 3
of R.B.C. No. 18).
viii) ‘Wada land’ is an open land in village site used for tethering cattle or storage of
fodder, manure or other similar things and is exempt from payment of land revenue as
long as its common use continues (para 4 of R.B.C. No 18).
ix) Private vacant plots in Gaothan area :

The privately owned vacant plots in the ‘Gaothan Area’ were liable to be assessed for
agricultural assessment at the time when the city or village survey was introduced. If
those vacant plots so assessed for agriculture assessment are subsequently used for
building purposes, Government is entitled to levy non- agricultural assessment on the
same (commentary under Section 126 of RLR Code 1879).
x) Non-agricultural assessment on lands held by Agricultural produce Marketing
Committee.
51
Under Government letter No. NAA-1072013520-L2 dated 19th August 1977 read
with Government circular No. LRT-1071/209104-B dt. 3rd July 1972 Government
have decided that the Agricultural Produce Marketing Committee should not be
exempted from payment of non-agricultural assessment, on lands held by them.
Government have also vacated the stay order issued in their No.O/136201-C-II, dt.
18th July 1972 under Government letter No. NAA-1072/135201-L-2 dated 9th August
1971 and vide subsequent G.R. No.VÉàÉÉÒxÉ /1089 /|É.µÉE. 89/89 G-1 dated 27th March
1998 had directed the following policy in regard to grant of Government land to
A.P.M.C. (1) Government lands may be granted to APMCs considering the prevalent
market rates and after determining the maraket value of lands, the same should be
recovered in yearly installments as below.
A) Where the annual income of the APMC is less than 1 crore- in 15 years
B) Annual income between 1 crore to 5 crore – in 8 years
C) Annual income above 5 crore- in 6 years.
While fixing/determining the market value, the rate of interest as declared by
Government may be considered. There is no exemption for NAA on land given to
APMC by Government. The Collectors of all the Districts have been directed to
recover the non-agricultural assessment from the Agricultural Produce Marketing
Committee in accordance with the provisions in the Maharashtra Land Revenue Code
and Rules made thereunder.

8.11 Levy of Zilla Parishad Cess on Non- Agricultural Assessment: -

From the provisions contained in Section 67 and chapter VII of the Maharashtra Land
Revenue Code, 1966, the non- agricultural assessment is land revenue in respect of
lands, used for non- agricultural purposes. The non- agricultural assessment is also a
sum received or legally claimable by or on behalf of the State Government from any
person on account of any land or interest in land and consequently it is covered by the
definition of land revenue in Section 2 (19) of the code. Therefore, local cess levied
under Section 144 of the Maharashtra Zilla Parishad and Panchayat Samiti Act, 1961,
would also be leviable on non- agricultural assessment (Government letter No. NAA-
1370/193700-CC dt. 17th August 1971 addressed to the Collector of Nashik).

52
 8.12 i) Non agricultural assessment shall ordinarily be levied upon the whole of
the land within the compound of the building and not merely upon the
land, covered with building (para 85 of Bombay Land Revenue Rules
1921).

ii) When land is used for fairs or shows, sometimes for a short time only, large
profits are derived. Such profits are to be taxed and non-agricultural
assessment recovered (vide provisions in B.L.R. Rules, 1921).

8.13 : On considering the report of the review committee on the working of the
Maharashtra Industrial Development Corporation and the Supreme Court decision given
in the case of Ramatanoo Co operative Housing Society v/s the State, it is held by the
State Government that the Maharashtra Industrial Development Corporation is an agent
of the State Government and hence is not liable to pay any assessment to Government on
the lands held by it. Industrialists making use of lands leased to them by the Corporation
are liable to pay ordinary lease money and not any other non-agricultural assessment in
addition to lease money.

R& F Circular No.NAA-1066/12027 C-II dated 29th March 1975.

1) If the land are transferred to the M.I.D.C. under provision of an Act, the corporation
would then become an occupant of the lands and in that case the question of leving NAA
on the corporation or the lessees holding through it would arise.
Non-agricultural assessment in respect of lands held by Maharashtra Industrial
Development Corporation may be recovered when such lands are not held by the
M.I.D.C. as an agent of Government.

8.14: Land owned by or transferred or assigned to a Municipality for one

purpose but then leased to non-agricultural uses (such as houses or cinema halls)
is liable to assessment.

8.15 : Non – agricultural assessment - lands held by Maharashtra Housing

Board :
53
According to the Revenue and Forests Department Circular dated 21st January 1973
lands held by the Maharashtra Housing Board are liable to payment of rent on the
basis of non- agricultural assessment in addition to occupancy price of the land
recoverable from the Board.

8.16 : ‘Nazul land’ is a land which has a site value as opposed to an agriculture
value. The management and disposal of nazul lands within the limits of municipal
towns and notified areas in Vidarbha region are governed by the instructions
contained in Revenue Branch Circular Section- IV Sr.No.1, issued under Central
Provinces Land Revenue Act, 1917. Leases granted, thereunder, carried the right to
renewal as a revised ground rent, according to the leasehold market value of the land
at the time of renewal. The cardinal principle governing the nazul management is
that ‘no government land should be alienated on terms, which prevent the
Government reaping the benefit of the unearned income (increment) at least once in a
generation’-

8.17 : Non- agricultural assessment ‘Clubs’ running on no profit basis :

‘Clubs’ (such as Rajaram inan Club of Kolhapur) catering facilities for recreation,
sports, etc. though run on no profit basis, are not exempted from non-agricultural
assessment (G.R.R.D.No. NAA/1253-H dated 14/9/54).

8.18 : “Building Site”

The ‘Building site’ means a portion of land held for building purposes, whether
any building be actually erected thereupon or not, and includes the open ground or
courtyard enclosed by, or adjacent to any building erected thereupon. Such building
sites situate within ‘gaothan’ in non- urban areas are exempted from payment of land
revenue.
8.19 : (I) Levy of conversion tax :

54
 Liability for payment of conversion tax by holder for change of user of land.
1) These shall be levied and collected additional revenue, to be called, the conversion
tax, on amount of change of user of lands.
2) Where any land assessed or held for the purpose of agriculture is situated within
(the limit of Mumbai Municipal Corporation Area excluding the area of the Mumbai
City District or any other Municipal Corporation areas). Of any ‘A’ class or “B” class
municipal area or of any peripheral area of any of them and (a) is permitted or
deemed to have been permitted under Sub-Section (3) of section 44, to be used for
any non agricultural purpose. (b) is used for any non agricultural purpose without
the permission of the Collector being first obtained, or before the expiry of the period
referred to in Sub-Section (3) of Section 44, and is regulated under clause (b) of
(Section 47 or) (c) in put to as bona fide industrial use as provided in section 44 A
then the holder of such land shall, subject to any rules made in this behalf be liable to
pay to the State Government the conversion tax Which shall equal to (five times) the
non agricultural assessment leviable on such land, in accordance with the purpose for
which it is so used or permitted to be used.
3) Where any land assessed or held for any non agricultural purpose is situated in
any of the areas referred to in sub-section (2) and
(a) is permitted or deemed to have been permitted under sub Section (3) of Section 44, to
be used for any other non agricultural purpose.
(b) is used for any other non agricultural purpose without the permission of the Collector
being first obtained, or before the expiry of the period referred to in sub Section (3) of
44 and is regularized under clause (b) of (Section 47 : or)
(c) is put to a bona fide industrial use as provided in Section 44A).
Then the holder of such land shall, subject to any rules made in this behalf the liable
to pay to the state Government, the conversion tax, which shall be equal to (five times)
the non agricultural assessment leviable on such land, in accordance with the purpose of
which it is so used or permitted to be used.
Explanation :- for the purposes of this section
1(a) ‘Mumbai Municipal Corporation’ means Mumbai Municipal Corporation,
constituted under the Mumbai Municipal Corporation Act 1888(Bom-III of 1888).

55
(b) “any other Municipal Corporation” means all the other existing Municipal
Corporation constituted under the city of Nagpur Corporation Act 1948(CP & Berar-II of
1950) or the Bombay Provincial Municipal Corporation Act 1949 as the case may be).
(c) “A” class or ‘B’ class Municipal areas means any municipal area classified as “A”
class or as the case may be ‘B’ class municipal area under the (the Maharashtra
Municipal Councils, Nagar Panchayats and Industrial Township Act 1965(Male XL of
1965).
2) ‘Peripheral Area’ in relation to
(a) Mumbai Municipal Corporation area (excluding the area of Mumbai City District)
and Municipal Corporation areas of the Nagpur and Pune Municipal Corporation
means, the area within eight kilometers from their periphery and.
(b) All the others Municipal Corporation area means the area within five kilometers from
their periphery.
(c) The cities of Nagpur & Kolhapur means the area within one kilometers from the
periphery of each of those cities and .
(d) Any “A” class or “B” class Municipal area means, the area within one kilometer from
periphery of each of such “A” class or “B” class Municipal area.

ii) In the cases of regularization of unauthorized non-agricultural use, conversion tax,

equal to five times the non- agricultural assessment is required to be levied and
recovered, irrespective of facts, whether unauthorized change of user has taken place
before or after coming into force the Maharashtra Land Revenue Code (Amendment)
Act, 1979.
[ For the words “three times” the words “five times” were substituted by Mah 23 of 1999
Section 2(I)(b)]
8.20 : Levy of non-agricultural assessment on lands used for salt manufacture :
The Collector of a District is empowered to permit use of unalienated lands for
the manufacture of salt, subject to the payment of non-agricultural assessment leviable on
the land. Unalienated unoccupied land can be granted under Section 38 in lease hold
rights by the Collector for a term of 25 years for the manufacture of salt on payment of
rent equal to 5% of the full market value of the land determined under chapter VII of the
Maharashtra Land Revenue Code, 1966 and the rules made thereunder or rupees 65 per
hectare whichever is more. (Rule 33 of Maharashtra Land Revenue (Disposal of Govt.
lands) Rules, 1971). However, considering hardships required to be faced by the salt
56
manufacturers Govt. have extended facilities of concessional rent for such leased lands
being charged at the rate of Rs. 2 per acre along with royalty of Rs. 1 per tonne of salt,
manufactured plus Zilla Parishad cess as per rules in force in the area (Govt. Resolution
Revenue and Forest Department No. LND-2777/265013/G-8 dated 2/8/1978 read with
G.R. No. LND/2779/2616/G-8 dated 26/8/78).

57
 CHAPTER – 9
Grants of Land/and Leases with right of Government to Mines and Minerals :

9.1 : According to provisions in Section 20 of Maharashtra Land Revenue Code, 1966,

all public roads, lanes and paths, bridges, ditches, dikes and fences, the bed of the sea
and harbors and creeks, below the high water marks and of river streams, nallas, lakes
and tanks and all canals and water courses and all standing and flowing water and all
lands, wherever situated and which are not the property of any persons, legally capable or
holding property, are declared to be the property of the State Government.

9.2 : Under Section 22, and subject to general orders of State Government, a survey
officer during the course of survey operation, and at any time, may set apart unoccupied
lands, (not in the lawful occupation of any person) in villages or parts thereof for forest or
fuel reserve, for free pasturage of village cattle or for grass or fodder reserve, for burial or
cremation ground for ‘gaothan’, for camping ground for threshing floor, for bazaar for
skinning ground for public purposes, such as roads, lanes, parks drains or for any other
public purposes, as mentioned in rule 14 of the Revenue Manual Volume II and lands so
assigned shall not otherwise be used without the sanction of Collector.

Unoccupied lands can be granted by Government to any person under the

provisions of Section 20 read with Section 31 of the Maharashtra Land Revenue Code,
1966, in occupancy rights under Maharashtra Land Re venue (Disposal of Government
Lands) Rules, 1971 for ;-

i) Agricultural purpose, with occupancy price, equal to market value fixed

thereon, in accordance with provisions in para 25 of Revenue Book Circular
No. 3 in Maharashtra Land Revenue Volume II.
ii) Non- Agricultural purpose in accordance with provisions in para 41 of
Revenue Book Circular No. 3, subject to assessment or re-assessment as the
case may be with non-agricultural assessment, fixed thereon.

58
9.3 : Disposal of Alluvial Land :

Under Rule 4(1) of the Maharashtra Land Revenue (Alluvial land (i.e. land
accretioned from the bed of river or sea by gradual slow and imperceptible means),
formed on any bank or shore exceeds one acre, the land should be disposed of to the
occupant at the price, not exceeding three times of the annual assessment. If, however,
the occupant of the said land does not accept the offer, it may be disposed of by public
auction to the highest bidder. In case of decrease in land, due to dilution for the portion
of land, in a survey no. not being less than half an acre, the holder is entitled to the
proportionate decrease in the assessment under Rule 5 of the Maharashtra Land Revenue
(Allusion and dilution) Rules, 1967.

9.4 : Inam Lands :-

Under section 75 of the Maharashtra Land Revenue Code 1966, Collector has to
keep a register of all lands, the alienation of which has been established or recognized
under the provisions of any law for the time being in force. In the prescribed form, in
which all alienations right to recover rent or revenue of the land under clause (2) section
(2) of all lands in the district (Transfer of right) are termed as Inam or waten lands, (para
I in Revenue Book Circular No. 12) with the enactment of various Inam Abolition Acts,
most of the imams and alienations have been abolished except the following-
i) Devasthan Inams and
ii) Revenue free grants made from time to time. Provisions in Section 331 and
332 of Maharashtra Land Revenue Code, 1966 would apply to such alienated
lands/villages.

9.5 : Withdrawal of concessions of occupancy price and Land Revenue in respect of

lands used for religious purposes only.

Under Govt. resolution Revenue Deptt. No. 61/8/33 dated 6/10/37 mentioned in
para 6 of R.B. Circular No. 12, in Maharashtra Land Revenue Manual Vol. II, Govt. have
decided to continue concessions of occupancy price and of land revenue for lands, used

59
for religious as well as philanthropic purposes, but no such concessions should be given
in future in respect of land used for purely religious purposes

(ii) Moreover, no unoccupied land shall be granted for construction of any temple,
church, mosque, nor such permission under Section 44 of Maharashtra Land Revenue
Code, may be granted for a change of use of land for construction of any such buildings
in any occupied land, except with previous permission/sanction of Govt. (Rule 40 of
Maharashtra Land Revenue (Disposal of Govt. Lands) Rules 1971).

9.6 : Grant of land purely for religious purposes :

While scrutinizing the records pertaining to grant of lands, in the local audit, audit
has to see that grant of land is made as per procedure in the Maharashtra Land Revenue
(Disposal of Govt. land) Rule 1971.

9.7 : Lands used for Drainage, water works, not exempt :

Lands used for drainage and water works, slaughter houses, etc. cannot be
regarded as yielding no return and are therefore not exempt (clarification made by Govt.
of Bombay in Revenue Department G.R. 15191 of 1977 (P.49) of B.L.R. Rules 1921).

9.8 : Lands free of land revenue :-

Gairan or grazing ground for cattle, burial and burning grounds, spots near
villages on which the village cattle stand and the lands for the use of village dhobis
(washerman) and potters and for other recognized public needs may be assigned by
Collector for these purposes respectively without charge (Rule 73 of Bombay L.R. Rules
1921).

9.9 : Auction of grazing land :

The grazing of unoccupied land may be disposed of by public auction by way of
lease or otherwise, year to year, or for any term, not exceeding five years, on the
following conditions :

60
 i) Purchasers are entitled to charge such grazing fees, as fixed by the Collector.
ii) Every resident or cultivator of the village shall be permitted to graze cattle on
payment of aforesaid fees.
iii) Such grazing land shall not be brought under cultivation.
iv) Such persons shall not have right in trees and forest produce standing on such
land (para 18 of R.B. Circular No. 4 in M.L.R. Manual Volume II). In all
grants of lands or disposal of lands, the right of occupation and use only,
subject to provisions of the code, shall be granted and not the proprietary right
(i.e. ultimate property rights, minerals rights, etc.).

9.10 : Transfer of Govt. lands to Municipal Corporation and Municipal Councils :

Free Grant for Govt. lands to Municipal Corporation and Municipal Councils :

Under Rules 5 and 6 of the Land Revenue Rules, Govt. lands within the limits of
Municipal Councils/Corporations can be granted revenue free for purposes, from which
no profit is expected, if such grants are made to Municipal Corporation. However, Govt.
in their resolution No. LMV.2669/194787-B I of 28/4/71, decided that Govt. lands
reserved for public purposes, in the limits of Municipal Corporations should be granted to
them at market price, prevalent on the date of publication of the draft development plan,
irrespective of whether such lands are intended to be put to remunerative uses or
otherwise. In view of the difficulties experienced by the Municipal Corporations, Govt.
have decided, in the Revenue and Forest Department resolution No. LMN 1074/58548-
G.6 dated 29/6/77, in partial modification of earlier orders that all Government lands, in
corporation towns, earmarked in the Development plan, for parks, playgrounds,
dispensaries, schools and public conveniences, should be given free in accordance with
rules 5 and 6 of the Land Revenue Rules. These orders will apply in all cases where
possession of the land has not been given to the Corporation prior to the issue of these
orders.

ii) : In respect of Govt. lands, in Corporation towns, required by the Municipal

Corporation in conformity with the Development plan, for public purposes, other than
parks, playgrounds, dispensaries and public conveniences, the orders contained in
Government Resolution dated 28/4/1971 will continue to operate i.e. the market price
prevalent on the date of publication of the draft develop0ment plan, will be charged
61
irrespective of whether the lands are intended to be put to remunerative use or otherwise
(para 4 of the G.R. dated 29/6/77).

iii) : Grant made revenue free to Municipal Corporation for purposes, such as parks,
playgrounds etc. are subject to condition that the land is utilized by the Municipal
Corporation only for the purposes for which it is granted and the same would not be
utilized for any other purposes without prior written approval of Govt. (para 5 of the G.R.
dated 29/6/77).

iv) : As per Rule 19 of Chapter II of M.L.R. Manual Volume IV, the Talathi has to
report within 3 days of Receipt of sanction for the change of user to the sanctioning
authority.

9.11 : Concession in Grant of land to freedom fighters for residential use :

Government in their Resolution in Revenue and Forests Department No.

1073/290849-AI dated 2/12/74, have decided that the residential plots to be granted to the
freedom fighters under Rule 28 of the Maharashtra Land Revenue Disposal of Govt.
lands) Rules, 1971, should be granted on concession of 50% in the occupancy price of the
plot, to be approved by Govt. provided the income of the freedom fighter does not exceed
Rs. 5000/- p.m. (concession should for a maximum area upto 465 sq. meters (about 5000
sq. feet).
(R& F GR VÉàÉÉÒxÉ-1098/147/|É.µÉE.-21/VÉ-1 dated 12-10-1999).

9.12 : Grant of salt marsh lands for reclamation :

Under Rule 40 of the Bombay Land Revenue Rules, 1921, salt land or land
occasionally overflowed by salt water and is not required for sale, manufacture, can be
leased for purposes of reclamation by the Collector on the terms and conditions
mentioned below, (para 22 of the Maharashtra Land Revenue Rules, 1971).

i) No rent charged for the first 10 years.

ii) Rent @ 60 paise per hectare be levied for next 20 years on the whole area
leased whether reclaimed or not.
62
 iii) After expiry of 30 years the lease shall be continued in the case of reclaimed
lands at the rate at which they would be assessed to land revenue from time to
time if they were subjected to survey settlement and in the case of un
reclaimed lands, if any at the average rate of the reclaimed lands.
iv) Any portion of land used for public roads shall be exempt from payment of
rent.
v) If the reclamation is not carried out with due diligence within two years of the
date of lease or if half the area is not reclaimed. So as to be in a state fit for
use for agricultural purpose at the end of ten years from such date and the
whole at the end of twenty years from such date or if any land once reclaimed
as aforesaid is not maintained in a state fit from use for agricultural purpose
the lease shall be liable to cancellation at the discretion of the Collector
provided that lessee may during the first ten years distinguish any area which
he can not reclaim.

9.13 : Grant of Government lands in corporation Towns allotted to private bodies for
schools and colleges ; Dispensaries and other public works
Government lands situated outside the areas of Municipal Corporations are
granted to all categories of Educational institutions, both for building and playgrounds,
revenue free. By Government Resolution in Revenue and Forests Department No. LRF
1968/210-863-B dated 21/6/72, it was decided that Government lands in the Corporation
Towns may be granted for educational purposes at 50% of occupancy price or on rent on
the basis thereof. Government in the Resolution No. LMN-1074/58543-9.6 dated 29/6/77
decided that Government lands in Corporation towns should be granted revenue free to
all Municipal Corporations for educational purposes, in accordance with development
plan. It has been decided by Government in their Resolution No. LRF 1077/31105-G-6
dated 11/1/1978 that in partial modification contained in Government Resolution LRF
1968/210863-B dated 21/6/72 Government lands situated within the limits of Municipal
Corporations may be granted for playgrounds or private Educational Institutions @ 10%
of market value at the time of grant and Government lands required for scheduled college
buildings may be granted at 25% of the market value at the time of grant, subject to other
conditions mentioned in the Government Resolution of 11/1/78. The following
concessions were declared by Government of Maharashtra Revenue & Forest Department
vide G.R. No.LRF-1082,1496/3900-H-6 dt.11-5-1984.
63
1. Revenue free grants were outside limits of Municipal Corporations
2. within limits of corporations on payment of occupancy price equal to 25% of the
market value of the lands as on 1-2-1976 to be determined by the Town Planning
& Valuation department OR on annual lease rent for a period of 30 years at 8%
to 25% of market value of the land as on 1-2-1976 to be determined by Town
Planning & valuation department.

Hospitals & Hospital cum Medical Colleges

1. Revenue free grants outside limits of municipal corporation
2. Within limits of Municipal Corporations on a nominal lease rent of Rs.1/- per
Annum for a period of 99 years (rule 5 & 6 and para-8 of Govt.Circular
No.L.R.F.1083/71134/lr/3478-G-6, Dt.08/02/1983.

Playgrounds or other recreational purpose to educational institutions or local

authority:
i) On normal lease rent of Rs.1/- a year for a period of 15 years out side limits of
Municipal corporations.
ii) Within the limit of Municipal Corporation on annual lease rent at 8% of 10% of
the market value of the lands as on 1-2-1976 to be determined by the Town
Planning or Valuation Department for a period of 15 years.

2) The above orders of 11/1/78 do not apply to those cases wherein Government
lands are already granted in occupancy rights. The cases of leases would be reviewed by
Government so as to bring them in conformity with the new policy subject to the
condition that any downward revision of rent should be calculated retrospectively but
applied prospectively.
3) Government lands within Municipal corporations may be granted on payment of
25% of the market value at the time of grant for construction of buildings to

a) Public Libraries, registered under the Maharashtra Public Libraries

Act, 1967
b) Recognized hostels for backward students run by voluntary agencies
and working women run by non-commercial institutes, registered
64
 under the Societies Registration Act, 1860 and / or Bombay Public
Trust Act, 1950.
c) Private hostels for students, registered under the Societies Registration
Act, 1860 mentioned in para 4 of the Government Resolution of
11/6/78.

9.14 : Re- grant of Ex-Inami lands to Ex- Inamdars :

Consequent upon enactment of various ‘Inam Abolition Acts, all inams except
devastan inams were abolished. Such inami lands held by ex-Inamdars were, however,
regranted to them (i.e. to the holders of lands) on payment of occupancy price or
premium, to be paid by the ex-Inamdars, in full, in suitable instalments within the
specified time, failing which, such holders of ex-Inami lands were to be treated as
unauthorized occupants of the lands. They were consequently not authorized to sell,
transfer or mortgage these lands, without prior permission of Government.

ii) While conducting the audit, it should be ensured that all ex-Inami lands,
except Devasthan Inams, were regranted to the occupants only upon full
payment of occupancy price or premium, determined by the competent
authority and assessment is levied on them, according to particular
nature of use of such lands, by the holders. All instances of omissions or
commissions noticed by Audit should be incorporated with comments
thereon, in the Inspection Reports.

9.15 : Grant of Government land on lease :

Unalienated Government lands are granted by public auction on lease basis, by

Government under Section 38 of the Maharashtra Land Revenue Code, to a grantee, who
is called a lessee. A lessee is required to pay as land revenue, ‘Lease money’, fixed under
the terms of the lease (section 39 of the code) where a lease is granted on payment of
annual ground rent i.e. lease money) without payment of any occupancy price or
premium, the ground rent should be calculated at 61/2% of the full market value of the
land as determined by the authority competent to grant the lease. Where any premium or
occupancy price is recovered as a consideration for grant of the lease the ground rent
65
(lease money) should be calculated at 8% on the full market value (as determined, minus
the premium or occupancy price recovered). The rental fixed, on lease lands is revisable
on the occasion of renewal of leases (Govt. resolution in Revenue and Forests
Department No. LND-1067/122964-A.I dated 3/11/69).

9.16 Temporary leases of Nazul land :

Rule 15 framed under Section 149(2) (c) read with Section 164(3) of the Madhya
Pradesh Land Revenue Code, 1954, provides for grant of temporary leases of
Government Nazul lands, on terms and conditions as mentioned by Govt. in the
accompaniment to the G.R. R & F Deptt. No. LND. 3959/129 404-A dated
3/8/64, which, inter alia, are as follows :

i) Temporary leases which can be given without public auction are

essentially meant for temporary uses and for temporary purposes such as :

a) Panthelas (mobile pan shop), moving thelas of hawkers etc.

b) Small shops of groceries, etc. on open land along the road side
c) Wooden platform in front of permanent shops.
d) Grazing, agriculture and wood stalls.

ii) Temporary leases, for purposes of (a) to (d) should be ordinarily granted
by public auction only. Where several plots of land in Nazul area are to be
granted on temporary leases, a layout showing the number of plots and
their dimensions, which can be granted on temporary leases should be
prepared before putting these plots to auction.
iii) No person, in whose favour a temporary lease is granted shall make any
permanent construction over the site so granted nor such person be
permitted to sub-let the areas granted to him on such lease.
iv) Lease may be granted for one year.
v) Yearly rent shall be payable in advance. For this purpose a register
showing temporary demand be maintained by the town surveyor or by a
Tahsildar where there is no town surveyor.

66
2) As regards grants of Government nazul lands, on no claim agreement,
Government may permit encroachment on nazul land to continue on the execution of no
claim agreements prescribed by the instructions given in sub clause (ii) of rule 12 of the
accompaniment, attached to G.R.R.D. No. IMD. 3959/129404-A dated 3/8/1964.

67
 C H A P T E R – 10
Miscellaneous items of Land Revenue
(Encroachments, water rates etc.)
10.1 Under Section 50 of Maharashtra Land Revenue Code 1966, encroachment, (i.e.
unauthorized occupancy) made on any Government Land or foreshore; whether
such land is used for the purpose of holding or selling articles without any specific
sanction from competent authority, is required to be summarily abated or removed
by the Collector, at the cost and expenses of the encroacher. Such encroacher has
to pay assessment leviable on the piece of land encroached by him for the entire
period of encroachment and a fine as per provisions in Clause (2) of Section 50 of
the Maharashtra Land Revenue Code. However, such fine shall not be less than
five rupees, but not more than one thousand rupees, if the land is used for an
agricultural purpose and rupees not exceeding two thousand, if the land is used for
any other purpose (i.e. non- agricultural purpose). A person caught hiring or
selling any articles is liable to pay fine of a sum not exceeding fifty rupees as the
Collector may determine.

ii) An encroacher who continues the encroachment, in spite of a notice served on

him by a Collector, under clause (3) of Section 50 of the Maharashtra Land
Revenue Code, 1966, is liable, in addition to penalties mentioned above, to
pay a fine not exceeding rupees twenty five per day in case of encroachment
on agricultural land and rupees fifty per day, if the land encroached upon is
used for any non-agricultural purpose (clause (4) of Section 50 of the
Maharashtra Land Revenue Code).

10.2 Regularization of Encroachment

If a person making an encroachment so desires, the Collector may regularize such

encroachment under Section 51 of the Maharashtra Land Revenue Code, by
charging penal occupancy price at a sum not exceeding five times of the value of
the land, so encroached upon and by fixing a penal assessment not exceeding five
times the ordinary land revenue thereon, then only such land is entered in the

68
 records of right, in the name of the said person (Rule 43 of the Maharashtra Land
Revenue (Disposal of Government Lands) Rules 1971).

10.3 Under Rule 43 of the Maharashtra Land Revenue (disposal of Government lands)
Rules 1971, grant of lands encroached upon can be made to the encroacher either
in occupancy rights under Section 20, read with Section 31 or in lease hold rights
under Section 38 subject to other conditions, mentioned in rule 43 ibid and also in
Section 50(2), and (4) of the Code.

ii) The assessment, so fixed shall be guaranteed for a period of 15 years, if the
land is used for non- agricultural purpose and for the period of settlement, if it
is used for agricultural purpose; thereafter, it shall be liable to revision, as per
Rule 43(iv) of the Maharashtra Land Revenue (Disposal of Government
Lands) Rules, 1971.

10.4 Grant of Land encroached upon by backward classes for housing

Unoccupied land, situated in non- urban areas, unauthorisedly occupied for

housing purposes by person belonging to the backward class, either individually
or in groups, may be granted free of cost and assessment by the Collector, to the
persons, so occupying such land, after laying it out in suitable plots of such size,
as may be prescribed by Government (Rule 45 of the Maharashtra Land Revenue
(Disposal of Government Lands) Rules 1971).

ii) If a person unauthorisedly occupying or wrongfully in possession of

land after he has ceased to be entitled to do so, continues to use,
occupy or possess by virtue of any reasons specified in sub-clause (I)
of Section 53, shall also be liable, at the discretion of the Collector, to
pay a penalty not exceeding two times the assessment or rent for the
land, for the period of such unauthorized use of occupation (Sub clause
(3) under Section 53 of the Maharashtra Land Revenue Code, 1966).

69
10.5 CHARGES FOR WATER

The rates as specified in Annexure 5 (item 7) for use of water (the right to which
vests in Government and in respect of which no rate is leviable under any law in
force in any part of the State), are sanctioned for non- agricultural purpose.

ii) These rates supercede all the rates under prevalent orders or practices in
regard to quantum on the rates chargeable under Section 70 of the
Maharashtra Land Revenue Code, 1966. (G.R. R & F Deptt. No. WTR
1070/900-G II dated 5/6/72 as amended by GR RD No. WTR/1076/1798-12
dated 10/6/1976).
iii) While scrutinizing the records in local audit it should be ensured that the
Collectors of the districts have fixed the water rates for use of water (the right
of which vests in Government), for various purposes, i.e. for industrial, for
municipalities and railways etc. and the rates so levied and fixed conform to
the provisions mentioned in Government Resolution Revenue and Forests
Department No. WTR 1070/900-G.II dated 5/6/1972. If should be seen that
the amount of dues towards water rates is watched promptly and recovered
properly, through suitable register (para 5 of R.B. Circular No. 11 of
Maharashtra Land Revenue Manual – II).
iv) In case water is used for agricultural purpose by a person to whom a
permission for use of the water for non-agricultural purpose is granted, a fine
not exceeding Rs. 200/- can be levied by the Collector, for breach of
conditions. Similarly, for altered use of non- agricultural purposes a fine not
exceeding Rs. 100/- is leviable (para 7 of the R.B. Circular and note 41-B
under Section 70 of the Maharashtra Land Revenue Code, Volume I).

The responsibility of the Revenue Department to collect water rate under Section 70
is limited to those cases where water is supplied from other than notified rivers. In
respect of rivers notified by Government, the water rate is an irrigation revenue and is
collected by the Irrigation Department .
v) Under Section 71, State Government can impose any cess on the rates of
water, for the purpose of local improvement.
70
10.6 Rent for lying of water mains and pipes etc.

i) Under Rule 39(i) in the Maharashtra Land Revenue (Disposal of Government

Lands) Rules 1971, Collector can permit the laying of water mains, pipes and
underground cables and construction of cess pools through, on, over or
underneath any Government land, on payment of an annual sum, not
exceeding 5 percent of the market value of the land, occupied for the purpose
subject to a minimum of one rupee.
ii) The Collector may permit under para 39(2) of the Rules, ibid, the erection of
poles, towers, stay rods or stay rails for overhead cables on Government land,
on payment of annual rent at the rate of 25 paise per pole and 50 paise per
tower, stay rod or stay rail.

10.7. Recovery of cost towards supply of khate pustikas and exemption of payment of a
scheme regarding supply of revised khate pustikas to all land holders (Khatedars) in the
State has been introduced with effect from 1/8/1976. For supply of Khatepustika,
Khatedar has to pay Rs. 3 as price and Rs. 2 as preparation charges. In order to facilitate
timely completion of the scheme and also to give relief to small khatedars, the khate
pustikas should be distributed to khatedars, whose liability to pay land revenue in respect
of their entire holdings in the state does not exceed Rs. 7.50 in a year, without recovering
from them the price of Rs. 3 of the khatepustika. In case where such small holders have
already obtained khate pustikas on payment, no refund should, however, be made (G.R.
Revenue and Forests Department No. RAM 1076/18068-L-6 dated 16/6/1976 and G.R.
Revenue and Forests Department No. RAM 1077/20404-L-6 dated 26/10/1977).

10.8 Other dues to be recovered by the Tahsildar

Besides land revenue, the Tahsildar is also empowered to recover dues of other
departments of Govt. as arrears of land revenue. The following are some of these;
i) Sales Tax.
ii) State Excise.
iii) Taxes on vehicles.
iv) Entertainment duty.
v) Electricity duty.
vi) Soil Conservation dues.
vii) Grow more food.
viii) Resettlement.

71
 CHAPTER 11
Mines and Minerals:
11.1: Major Minerals :

a) : The administration of Minerals other than minor minerals is governed by the

enactment of the Central Government viz. “the Mines and Minerals (Regulation and
Development) Act 1957 and the Rules made thereunder”. The above Act and Rules deal
among other things with the general restrictions on undertaking prospecting and mining
operations, grant of lease or licence termination mining leases, restrictions on the grant of
prospecting licences mining leases, duration of the leases and maximum area for which
such leases can be granted.

b) : The royalty in respect of the minerals removed or consumed is chargable at the

rates specified in the Second schedule to the above Act.

c) : The holder of a mining lease is required to pay the State Government every year
dead rent at such rate as may be specified in the Third Schedule for the areas included in
the instrument of Lease.

Provided that where the holder of a mining lease ….. liable to pay royalty for any
mineral removed or consumed he shall be liable to pay either such royalty or ….. dead
rent in respect of that area, whichever is greater.

11.2 : Minor Minerals :

Section 15 of the Mines and Minerals (Regulation and Development Act, 1957)
empowers the State Government to frame rules for regulating the grant of leases for
minor minerals and also to fix the rates of royalty. The mineral administration in the
State is governed as per the provisions of (1) Bombay Minor Mineral Extraction Rules
1955 for Pune and Bombay Divisions, (ii) Rules regulating the working of mines Rules
1954 for Aurangabad Division and (iii) Maharashtra Minor Minerals Extraction Rules
1966 (for Vidarbha Region) and also Section 48 of the Maharashtra Land Revenue Code.

72
The power to grant quarry leases permits are vested with the respective Collectors. The
above provision deal with the general restrictions etc. as detailed in paragraph 11.1.

11.3 : The royalty in respect of minor minerals dispatched from the leased area is
chargable at the rates specified (in the Schedule I of the respective Rules) in appendix 5
(item 8)

11.4 : The lessee is also required to pay for every year of lease such yearly dead rent
within the limits specified in Schedule II of the respective Rules as may be fixed by the
Collector in the lease. If the lease permits the working of more than one mineral in the
same area, the Collector may fix separate dead rent in respect of each mineral.

Provided that the lessee is required to pay the dead rent or the Royalty in respect
of each minor mineral which may be higher in amount but not both.

11.5 : The important conditions for the grant of mining leases :

In addition to the provisions mentioned in paragraphs 11.1, (b), (c), 11.3 and 11.4
above the following important conditions have also been prescribed for the grant of
mining leases in the Mines and Minerals (Regulations and Development) Act 1957 and
the rules made by the Central and State Governments.

a) : The lessee has to pay for the surface area used by him for the purposes of mining
operations surface rent at such a rate not exceeding the land revenue and the cesses …….
On the land as may be fixed by the Collector and …… in the lease.
b) : The lessee has to keep correct accounts showing the quantity and the other
particulars of all minerals including minor minerals obtained and dispatched from the
mine.

11.6: Government title to Mines and Minerals

i) The right of the Government to mines and mineral products which is reserved
by section 48 of the Maharashtra Land Revenue Code 1966, shall not be
disposed of without the sanction of the state Government and in all grants of
land, the right of mines and mineral products and full liberty of access for the
73
 purpose of working and searching for the same shall be deemed to be reserved
unless the State Government direct to the contrary and unless such right and
liberty are expressly granted. Government under clause (7) of section 48 can
take action against any person, who, without lawful authority, extracts,
removes, collects replaces, picks up or disposes of any mineral and levy
penalty not exceeding a sum determined, at three times the market value of the
minerals so extracted provided that if the sum so determined is less than one
thousand rupees, the penalty may be such larger sum not exceeding one
thousand rupees, as the Collector may impose. As regards extraction and
removal of minor minerals by inhabitants of a village, town or city for their
domestic, agricultural and professional use, on payment of fees or free of
charge, action is required to be taken under provisions in note 35 under
section 48 of the Code. Under Maharashtra Land Revenue (extraction and
removal of minor minerals) Rules 1968, any person committing a breach of
any of the provisions would be punishable with fine, not exceeding one
thousand rupees, as the Collector may deem fit to impose.

As per Government notification of 22/7/1976, simple interest at the rate of 10%

per annum, is required to be charged, on any amount of rent, royalty or fees etc. due
to Government from sixtieth day of the expiry of the date fixed by Government for
payment.

11.7: Disposal of sands in river beds :

Sand, deposited in river beds by floods is disposed of by annual auction. Sand is

extracted from river beds in the months of January to May as rivers are generally
flooded from June to December and transport of sand in this period from river beds is
difficult.

ii) Some times, sand is also disposed of departmentally by issuing permits, to

intending contractors or needy persons. Necessary records, are kept in Tahsil
Office.
iii) Similarly sand situated in the bed of a river and not included in a survey
number shall ordinarily be leased annually by auction to the highest bidder for
74
 a term of one year or such longer period, as the Collector thinks fit. The
accepted bid that is to say the lease money shall be deemed to be the land
revenue chargeable on such land. (rule 21 of Rules regarding disposal of
Government Lands).
iv) Such land shall not be disposed of any the Collector in occupancy rights
except with the sanction of the State Government.

Recovery of Cess on Royalty on Minerals :

According to Section 156(1) of the Maharashtra Zilla Parishad and Panchayat

Samities Act, 1961 amended vide Maharashtra Zilla Parishad and Panchayat Samities
(Amendments and Validation) Act, 1981, where a royalty in respect of minerals in
any land (when the minerals belong to Government) is payable to the State
Government the cess on such royalty is leviable from the 13th day of July 1973 at the
rate of 10 paise in the case of major minerals and at the rate of five paise in the case
of minor minerals on every rupee of every sum payable to the State Government on
account of royalty in respect of minerals in any such land.

11.9: Extraction of Minor Minerals :

Under the ‘Bombay Minor Mineral Extraction Rules 1955’ the Collector of the
District is empowered to permit extraction of minor minerals from lands, on payment
of royalty at the rates specified in Appendix 5(Item-8).

The following points may be kept in view while examining the various pro
visions of mines and minerals :

1) that mining leases have not been granted without valid certificate of
approval.
2) Non- levy or short levy of stamp duty on mining leases.
3) Non-levy and short levy of cess on Royalty.
4) That there has been no delay in regrant of surrendered land and
consequent loss thereof.
5) Incorrect application of rates of dead rent.
75
 6) Non-levy or short recovery of royalty owing to-

a) discrepancies in the accounts and returns.

b) Short accountal of minerals.
c) Reduction of balance after physical verification.
d) Non-accountal of closing stock on nationalization
e) Non-levy of royalty on stock of minerals on surrender of
lease.
f) Non-levy of royalty on

i) Coal consumed in collieries and used in making coke.

ii) Coal used in boilers.
iii) Coal transferred by one lessee to another.
iv) Coal consumed by workmen in excess of prescribed ceiling limit.
v) Non recovery of cost of ore removed during the period of prospecting license.
vi) Improper fixation of conversion factor in respect of limestone.
vii) Irregular allowance towards moisture content in limestone.
7) Determination of lease without recovery of dues.
8) Delay in disposal of application for grant of mining lease.
9) Delay in disposal of seized minerals.
10) Cases of illicit mining minerals.
11) Non-assessment and short assessment of surface rent and water rates.
12) Losses in re-auction.
13) Irregular refund and excess refund etc. may also be suitably pointed out.

76
 PART – III
CHAPTER – 12
MAINTENANCE OF FORMS AND ACCOUNTS AT VILLAGE/ TALUKA
LEVEL

General : Revenue accounts designed to be kept at village and Taluka level should
interalia, indicate the following.

i): Correct amount of demand of all kind of dues from the village/taluka.
ii): Correct amount of land revenue including non- agricultural assessment dues and
other miscellaneous revenue etc. realized during the year.
iii): Correct amount of arrears, if any from previous years, to be recovered in the
current year.
iv): Correct amount of balance remained to be recovered with year-wise analysis of
such arrears.
v): There should be complete agreement between village accounts and taluka
accounts.

12.2 : The basis for determining the amount of land revenue due on lands, used for non-
agricultural purposes, is village Form II and Taluka Form II registers, at village and
taluka levels respectively. As per instructions contained in the Manual of Revenue
Accounts, whenever diversions are authorized, these are to be duly noted in Taluka Form
II and Village Form II registers. The total amount of non-agricultural assessment, as
disclosed by the Village Form II register is transferred to the ‘Tharavband’. (Taleband)
(Village Form V) register, which determines the total land revenue demand of the village
from various sources. The actual recovery of land revenue and preparation of other land
revenue accounts are done on the basis of demands, contained in the Tharavband.

12.3 : The demand in respect o lands diverted to non-agricultural purposes is annually

determined with reference to entries of non-agricultural assessment in village form II and
Taluka Form-II. According to instructions contained in the Manual of Revenue Accounts,
the Tahsildar is required to make a note of each non-agricultural case in Taluka Form No.
II and then pass it on to the Village Officer (Talathi/Patwari) for being noted in Village
77
Form No. II. When an agricultural land is permanently diverted to the non-agricultural
use, the entries relating to the area and classification of such land in Village Form No. I
(Register of Agricultural Land and Assessment) are cancelled and this is done by means
of a “Kami-Jast Patrak” (a correction statement showing correction in area or assessment
after survey), issued by the District Inspector of Land Records. According to the existing
orders, entries of permanent non-agricultural cases are required to be made in Village
Form II without waiting for “Kami Jast Patrak” and recovery of dues of non-agricultural
assessment is made after deducting the amount of agricultural assessment (of that
particular plot/land).

12.4 : As the basis of demand of non-agricultural assessment is the Village Form II, any
error in recording rate of annual non-agricultural assessment, or period, etc. is likely to
result in recurring incorrect demand and consequent incorrect recovery of land revenue.
Entries in the register need close scrutiny and review with reference to original sanads
issued by the Department.

12.5 : According to the existing instructions all grants or leases of lands with special
conditions are to be invariably noted in Section III of Village Form II and Taluka Form II
register, with a view to review these cases periodically, so that special terms and
conditions attached thereto can be enforced timely. The salient features of these grants
are that such grants can be “revenue free” in the initial period, but the land revenue may
be subsequently recoverable on a gradually increasing scale and full assessment leviable
after a specified period. Unless these grants are noted specifically with terms and
conditions, in section III of Village Form II register (and also in Taluka Form II register)
there is every likelihood of under-assessment and irregular assessment of land revenue of
such lands.

12.6 : Broad outline of Important Forms and registers relating to revenue accounts,
required to be maintained at the Village and Taluka level, is mentioned in Appendix 2.

12.7 : As per instructions in Chapter II or the Maharashtra Land Revenue Manual,

Volume IV a Talathi is required to maintain a cash book for exhibiting therein, all the
money received and credited by him in his official capacity. A Talathi has also to
maintain, all the village records, as mentioned in Chapter II of the Land Revenue Manual
78
Volume IV, and keep the same upto date. However, Circle Inspector, who is required to
check Talathis Dafter (records) with a view to see that the Talathi concerned has
maintained all the records/registers, correctly and in proper forms. Circle Inspector has
also to ensure that the Talathi makes a correct demand, recovers it from the concerned
person, accounts for it correctly and leaves no balances to be recovered in future. For this
purpose, Circle Inspector is required to check challans with the receipts and cash books
and ensure that all the amounts recovered are correctly credited into Treasury. (See also
detailed instructions contained in Chapter III of Maharashtra Land Revenue Manual,
Volume IV).

12.8 : Instructions for issue of Receipts for payment of Land Revenue

i) Government in their Revenue and Forests Department circular No.

REV/1073/27996.L.3 dt. 6/4/1976, have instructed, that Talathis who receive
the amount towards the payment of land revenue should prepare the receipts
in triplicate by using carbon paper having carbon on both the sides. The first
i.e. the original receipt should be given to the payee by the Talathi the second
copy of the receipt should be sent to the Taluka Office. Where such receipts
should be compiled village wise, talukawise and Khatedar wise for record and
the third copy should be retained by the Talathi, for his record.
ii) Talathis, should not be allowed to retain with them unfinished receipts books
for indefinite period as this is contrary to Government orders and may result
in malpractices by Talathi.

79
 PART - IV
CHAPTER ; 13
Special feature of Bombay City Land Revenue Audit
13.1 : The land tenures in the Bombay City trace their origin since the days the area was
under the Portuguese rule. The City of Bombay is comprised of various tenures, which
are in the nature of alienations. Bombay city is mainly divided by two types of tenures

a): Special and Inami Tenures and

b): Revisable Tenures.

Special and Inami Tenures, include following tenures :-

i) Pension and Tax Tenures
ii) Quit and Ground Rent Tenures
iii) Sanadi Tenures
iv) Foras Tenures
v) Inami Tenures

“Revisable Tenures” include :-

i) Toka Tenures
ii) Lease Hold Tenures
iii) Newly Assessed Tenures
iv) Tenancy at will

All these tenures continued to prevail in the city till the enactment of Bombay City
(Inami and Special tenures) Abolition and Maharashtra Land Revenue Code
(Amendment) Act, 1969, came into force, i.e. upto 31st July, 1971.

By virtue of the Bombay City (Inami and Special Tenures) Abolition and
Maharashtra Land Revenue Code (Amendment) Act, 1969, Inamis and Special
tenures in Bombay city were abolished with effect from 1st August 1971. The Rules
to implement the Act were framed in January 1972. The abolished tenures involved
139.79 lakhs square meters (17,960 holdings) spread over 19 revenue divisions.

80
 Under Section 7 of the ‘Abolition Act’ these tenures (excepting 2nd Inam grant
lands) are subject to revised assessment to be determined with reference to the
standard rates to be fixed under Section 8 and recoverable from 1st August 1971. The
revised assessment is to be levied on a graduated scale and for the first ten years from
the appointed day (August 1971 to July 1981) at 10 percent of the full assessment.

13.2 : The particulars of various tenures, are given in brief, with a view to having
correct information of each tenure, with its historical background.

i) Pension and Tax Tenure :

The term ‘pension’ takes its origin from the Portuguese word ‘pencao’ which means a
bonus of premium. There was no fixed rate per square yard on the lands falling under
this tenure. Pension was originally levied on rice land and the tax was levied on the
produce cultivated at so much per wheel used for Irrigation. Land held under this
tenure is found in the Fort, Girgaon, Malabar Hill, Cumballa Hill and in the Mahim-
woods. The area as recorded in Col. Laughton’s survey was 2,551 acres. Those
lands, which continued to be charitable, were exempted either from pension or tax.
The cess on these lands was not subject to revision and was redeemable on payment
of the amount of 30 years’ rent.

i) Closely associated with the pension and tax tenure is a kind of sub tenure
known as “Fazindari”. The owner of the land under Government is known as
the ‘Fazindar’. The land under this tenure was let for building purposes,
without, in most cases, any formal agreement and subject to low annual
ground rent. “Fazandari Land” means land held by a Fazindar and entered as
such in the register and rent rolls, maintained under Section 305 of the Code.

ii) Quit and Ground Rent Tenure:

“Quit rent” as its name implies, means freedom from military service. The quit rent
was first imposed on every description of property (pension lands- not excluded)
within the Town walls but afterwards extended to properties beyond the walls. Like

81
pension and Tax lands, the cess on these lands could be reduced on payment of 30
years’ rents.

Quit and ground rent lands are situated in the Fort, old and new Towns and parts
of Colaba and Mazgaon. Their area as shown in Laughton’s survey was 973 acres.

iii) Toka Tenure :

Toka lands derive their name from the word ‘Toka’ which means a share of the
produce, the assessment on these lands having been formerly paid in kind. These
lands are situated in the greater part of the villages of Parel, Bombay, Naigaon,
Wadalla Matunga, Sion and Dharvi. Toka lands are situated on the north east of the
island from Sion to Sewri. They comprised a total area of over 1,500 acres.

iv) Foras :

Foras or Salt Batty lands are lands reclaimed from the sea. They derive their name
from the Portuguese work “Foro”, which signifies outlaying or wastelands or the rent
reserved for such outlaying or waste lands. Foras lands are situated at Byculla, Parel,
Worli, Mahim, Matunga and Dharavi. Their area as given in Laughton’s survey was
3,408 acres. Like pension and Tax and quit and ground rent lands, the cess on these
lands, is redeemable on payment of 30 years’ rent.

v) Inami Tenures :

The lands in Bombay, which fall under this tenure are comprised in the three grants
made to the Lawjee Wadia family by Government in 1783, 1821, and 1885. The
Inam lands are situated at Naigaon, Parel and to the North West of the Sion Fort.
Small portions lie near Dadar and Dharavi. The area of Inami land is 1,181 acres.

vi) Lease hold tenures :

The total land under lease hold tenures in Bombay city is 53,49,349 square metres
and the amount of annual rent earned by Government at present is Rs. 29,42,460.
82
 Lands are held under contracts or agreements which had been entered into
voluntarily by both the Government and the leases. The rent charged according to
the existing covenants of leases is ridiculously low, compared to the rate of rent
that is ordinarily levied at present. i.e. 8 percent of the market value of the land.
The cases, wherein, leases are renewable due to expiry of lease period on revised
rent are required to be scrutinized with a view to assessing the under valuation
due to non-revision of rent of such leases after expiry of lease period.

vii) Sanadi Tenures :

The sanads oveer a period of 40 years (from 1814 to 1854) during which 828 sanads
were issued. The sanadi lands are mostly situated in the New Town. They were
generally issued on the application of individuals for building sites. The sanads were
mostly of three different types with the exception of special grants made for some
specific purposes. The sanads for lands in Colaba which were of the third type and
were all granted in 1815 were cancelled and lands resumed in the years 1823 and
1866 when the limits of Colaba cantonment were extended. Under the first of the
existing type, the holder is a mere tenant at will the land being resumable by
Government. Under the second, the land can be resumed if required for a public
purpose, only on six months notice being given and on payment of the value of
buildings as improvements thereon.
viii) Newly Assessed Tenures :
The number of holdings under this tenure (Newly assessed) is 436, covering on area
of 8,32,018-30 square meters.
The basis of assessment in revisable Tenures, can be made a subject matter of
audit, this is not possible in case of permanent tenures due to the fact that these
permanent tenures which are Inami and special Tenures, stand abolished from
1/8/1971, consequent on enactment of the Bombay city (Inami and Special Tenures)
Abolition and Maharashtra Land Revenue Code (Amendment) Act 1969 and as such
all superior holders of such tenures, are liable to assessment at the standard rate of
assessment under Section 8 of the said Act. However, if under revisable tenures, any
lands, if given free of assessment to local bodies or Institutions, audit has to satisfy
itself, that the exemption so given is covered under the said Act or rules made
thereunder.
83
ix) Audit of receipts of “Tenancy at will Tenure” :

Monthly tenancies on Government lands have been created as per the Bombay City
land Revenue Act 1876. They are terminable at the will of the Government. They
are created for 3 years at a time. The ground rent is fixed at a percentage of the
market value of the land per square yard, payable by the tenant. A tenancy deposit,
equivalent to three or four months’ rent is recoverable from the tenant to ensure
compliance with the imposed terms and conditions of an agreement, to be executed
by the tenant with the Government upto 1956, Government sanction was necessary
for renewal of the tenancy. By Resolution No. LDT/2556/61857 dated 15/6/1956
Government delegated to the Collector, Bombay the power to renew the leases as and
when they fall due. The general policy of the Government is to provide for renewals
at revised rentals i.e. at 6 1/2% Percent of the market value from 1964-65, thus
safeguarding the interest of the State in the unearned increment in land value and
providing at the same time, security of tenure (page 238 of the Bombay City Land
Revenue Act, 1876 “Renewal of Lease”). Therefore, it is necessary for the Collector,
Bombay to keep watch.

(i) on the punctual recovery of ground rents,

(ii) forfeiture of the tenancy deposits in cases there is delay in payment in
monthly rents/non payments of the monthly rents (iii) recovery of
increased tenancy deposits on account of the revised ground rents (iv)
on renewal of the tenancies when their periods of the present tenures
expired, duly revising the ground rents, in pursuance of the
Government Policy.

13.3: With a view to abolishing Inami and Special tenures, on which lands are
held in the City of Bombay, and to subjecting those lands to ordinary land revenue the
Maharashtra Act No. XLIV of 1969 namely ‘Bombay City (Inami and Special
Tenures), Abolition and Maharashtra Land Revenue Code (Amendment) Act, 1969
enacted by Government of Maharashtra, Bombay, which is printed as Appendix 42 to
the Maharashtra, Land Revenue Manual Volume- I. This act has come into force
from 1st August 1971.
84
ii): Under section 4 of the Act, ibid
(a) all Inami tenures and the special tenures stand abolished and (b) the right
of an Inamdar to recover Land Revenue, in respect of Inam Lands, is
extinguished, except, however, where such tenure land formed part of the
property of a Public Trust Act, 1950, such Inami land, or special tenure
land, would continue as such, so long as it continues to be part of such
trust and used for the objects of such trust.

iii): For facilitating assessment, every superior holder is required to furnish,

within a period of one year and six months, from 1/8/1971, a return to the collector in
respect of his inami or special tenure land, giving such information in such form, as
prescribed by Government, failing which he is liable to pay a penalty of fifty rupees.

iv): On the commencement of this Act, the assessment of lands held on inami
and special tenures is required to be fixed under section 8 or the said Act, and such
assessment is leviable from 1/8/1971 till the expiry of the period of guarantee (i.e. 50
years from 1/8/1971).
.

v): Under section 8 of the Act, the assessment of lands, held before 1/8/1971
is required to be fixed, at the standard rate of assessment, on the total area of the land,
and the actual assessment of individual plot, in each revenue division, thus fixed, at
an amount equal to the product of the standard rate of assessment in rupees per square
meter and the area of the plot (in square meter), rounded off to whole rupee.
However, the full assessment fixed accordingly, is require to be levied gradually, in
the following manner:

i) For the first 10 years from 1/8/1971 at the rate of 10 percent of the full
assessment.
ii) For the next 10 years at the rate of 25 percent of the full assessment.
iii) For the next 10 years at the rate of 50 percent of the full assessment.
iv) For the next 10 years at the rate of 75 percent of the full assessment.

85
 v) After expiry of 40 years commencing from 1/8/1971, the lands in each
division will thus be liable to the payment of full assessment for the
succeeding period of 10 years and thereafter, until the assessment is so
revised, notwithstanding the expiry of the period of guarantee. However, the
state Government can fix under provision in Clause (II) of the Section 8 of the
Act, the assessment reduced amounts.

Government Lands and Foreshore:

All unoccupied lands within the City of Bombay and every unoccupied portion of
the foreshore below high water mark, shall be deemed, the property of the State
Government, subject always to the rights of way and all other rights of the public legally
subsisting (Section 294 of the Maharashtra Land Revenue Manual Volume – I).

Rent Rolls kept in Collectorate Office:

Collector has to prepare and keep in such form as the State Government
may from time to time sanction, a separate register and rent roll of every description of
land according to the nature and terms of the tenure, on which the land is held. (Section
305 of the Maharashtra Land Revenue Manual Volume I).

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 PART-V
CHAPTER – 14
EXTENT AND PERIODICITY OF LAND REVENUE RECEIPT
AUDIT/DECISIONS OF THE COMPTROLLER AND AUDITOR GENERAL OF
INDIA

14.1 The main objection of audit or receipts from land revenue is to see that all
holdings are correctly assessed, noted in the Taluka Form-I village Form-I (See Appendix
2 for details of these forms) and in the Register of Demand, Collection and Balance and
that amount due from the holders/tenants are collected and deposited in the treasuries
promptly. For this purpose, it is necessary to audit the records, maintained in the
following offices.

(a) Superintendent of Land Records/or District Inspector of the Land Records.

(b) Tahsil Offices.
(c) Districts Offices (Collector’s office)

14.2 Records maintained in the Land Records Offices D.I.L.R.

It should be seen that survey has not become over due unless postponed by the
orders of Government, on grounds sanctioned by low.
Audit may generally examine the basis on which land is classified under different
categories, and see that due regard has been paid to the factors specified in the Act and
other criteria laid down by Government in fixing the standard rates. Comments from this
angle should be made sparingly and only after careful consideration by an officers of the
rank not below than of D.A.G.(C.A.G’s letter dated 5-3-1073). The D.I.L.R. offices
maintains *(V.F.I.) of all the villages in the district. All changes in the ‘Akarband’ are
authorized by this office by means of K.J.P.(Kami Jast Patrak). Even the fixation of land
revenue, on agricultural lands, which were un-assessed at the time of land settlement, are
fixed by this office with reference to the assessment of agricultural land revenue, the
agricultural land involved is required to be classified, which is one of the most important
factors influencing assessment. In doing so, all the advantages and disadvantages,
87
attaching to the field are taken into account and classification is suitably weighed either
way. Detailed instructions are contained in survey and settlement manual. This office is
also entrusted with the work, relating to ‘Pot-hissa’ (Sub-Division) and measurements
work for which fees are charged as per orders issued from time to time. The following
points could be scrutinised.

i) The progress of issue of Kami Jasti Patrak:.

This item is neglected either due to rush of work or otherwise, result of which is noticed,
in not bringing the ‘Akarband’ of the village concerned, upto date. An independent para
on this item can be (*please see Appendix 2) prepared and included in the Inspection
Report.
ii) In case survey has been overdue it may be interesting to collect details of areas,
which are still to be surveyed. As fiscal element is one of the objects behind survey, it is
in the revenue interest of Government to have such survey, which discovers the latest
users of land and helps Government, in levying proper assessment with reference to user
of the land, in accordance with the provisions of Maharashtra Land Revenue code.
iii) The basis on which land is classified under different categories, may generally
be seen to ensure that due regard has been paid to the factors, specified in the Act
(Section 83 and survey and Settlement Manual).
iv) The number of cases involving pot hissa work, fees levied, basis for fees,
demand, recovery, arrears records, maintained etc. may be seen. An independent para in
the I.R. on this would be justified.
v) The cases in which measurement was taken up and fees levied, etc. could also
be seen.
vi) The fixation of land revenue on agricultural lands, initially unassessed, can be
seen. What rate has been applied, and how land has been classified etc. can form basis of
audit scrutiny. Under this category will come deforested land, fallow lands etc.
Generally this work is also pending resulting in non levy and non recovery of substantial
revenue. Even the assessment fixed can be checked with reference to assessment on
adjoining survey numbers which was fixed at the time of settlement and glaring
variation, if any could be a matter for further investigation. A suitable para covering all
the aspects of this item, can be attempted in I.R.
vii) Village maps are available and can be referred to see the location of the
field. Whether there has been any adhoc increase, ordered by Government in respect of
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agricultural assessment, pending revision of settlement, and if so, whether those orders
have been enforced in all the villages, for example, the ex-Hyderabad Government had
ordered an adhoc increase of 12 1/2% . (Two annas rupees) form 1952-53. It would be
of interest of verify, if this has been implemented in all villages.

14 3 In the district offices :

One of the principal points to be seen during the audit of the Collectorate is the
proposal for fixation of standard rates of non agricultural assessment for various urban
areas as well as those for fixation of the rates of non agricultural assessment for rural
areas in the particular district. Specified comments should be offered in respect of places
in the district, for which standard rates have already been fixed or revised, after due
scrutiny of the basis of fixation of the rates in respect of such cases, where mistakes of
principle as well as arithmetical in the fixation of rates are noticed, resulting in
under/over assessment, due to such mistakes. Papers relating to permission granted for
use of lands for non agricultural purpose, in urban area and in class-I village are kept in
Collectorate Office. Similarly such papers of class-II villages are kept in Sub-Divisional
Officer and only note of the non agricultural assessment is kept in the Tahsil Office(T.F.-
Form-II). It is necessary to scrutinize the non agricultural papers also. A scrutiny of
records will include case of non revision of agricultural and non agricultural assessment,
non levy of agricultural assessments where ever due, non assessment of newly developed
lands, like deforested lands, Khar lands etc. and bring out omission and commissions,
noticed during audit. Collector has power to alter assessment in case of ‘Alienated’
surveyed settled villages”. When agricultural land is used for any other purpose (page 64
of Gupta commentary of B.L.Code 1879).

2) Section 75 of the Maharashtra Land Revenue Code 1966, requires the collector
to keep in the prescribed form a register of all lands, the alienation of which has been
established or recognized under the provisions of any law for the time being in force.
The Collector of the district is expected to ensure the upto date account of alienated lands
in the districts. This register of alienated Inami lands needs to be checked thoroughly
during the course of audit of the Collectorate.
3) Similarly, a register of mining leases is required to be kept in the collectorate,
in respect of mining leases, showing interalia following particulars :
i) Name of the lessee and his address.
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ii) Particulars and area of the land in respect of which the lease has been granted and
the period of the lease.
iii) Date on which the lease is granted.
iv) Date on which formal lease is executed.
v) Rates of royalty, surface rent and dead rent.
vi) Minor minerals or minerals for which the lease is valid and
vii) Amount of security deposit.

4) Proposal for suspension and remission received from the Tahisl Offices are
finally accepted by the Collector , who after satisfying himself, grants suspension of land
revenue on the district in accordance with the provisions contained in Rules 8 and 9 of
the Maharashtra Land Revenue(Reduction , Suspension and Remission) Rules, 1970,
Such proposals need to be scrutinized in detail, with view to ascertaining whether grant
of suspension and remission is justified and correct in accordance with the provisions of
the rules.
5) The following points should also be seen in the scrutiny of the fixation of
standard rates :
1) Whether there is under valuation of market value.
2) Whether the revised standard rates fixed by the competent authority have
been applied.
3) Whether the standard rates not notified in the official gazette and
consequently not legally enforceable.
4) Whether there are errors of inclusion of survey numbers in any block of urban
area and thus escaping levy of standard rates.
5) Whether there is delay in notifying the qualifying villages as urban area.
6) Whether the village other than those which are notified as urban areas, have
been notified as class-I and class-II villages and non agricultural assessment
have been fixed subject to the ceiling limit prescribed for class-I and class-II
villages.

14.4 In Tahsildar’s Office

Audit should verify if the demands are correctly calculated in accordance with the
rates noted in the Index Register, which is prepared by the Settlement Office and it is
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transcribed in the Demand, collection and Balance Register from the last year’s Demand,
Collection and Balance register correctly, with increases and decreased as authorized by
competent authority. Audit should also scrutinize the position of arrears of land revenue
and satisfy itself that proper action has been taken for their recovery. It should be seen if
the challans received from the Patwari/village Accountants have been entered in the
challans register and that at the end of each month reconciliation is made with reference
to the daily collection, returns and the receipts and the Treasury challans submitted by the
Patwari/Village Accountant to the Tahsildar. The register of Receipt books should be
checked to see that a proper account has been kept of all the receipt books.
ii) The periodical returns submitted by the Tahsildar to the collector may be test
checked to determine their correctness. Moreover, audit should see that
suspension/remission of land revenue have been sanctioned by the competent authority
for reasons recorded in writing.
iii) Accounts maintained by Patwaries or village Accountants should be
scrutinized with a view to seeing that all the used receipt books supplied to the
Partwaries/village Accountants, with counter foils of receipts are returned to the
Tahsildar, that the amount shown as received in the counter foils have been noted in the
Cash Book and that all Collections are deposited in the Treasury, as evidenced for the
endorsements on the Treasury challan by the Tahsil Revenue Section, Remittance into
Treasury should be got verified independently by deputing one of the officials (SO/AAO)
from the Audit party.
iv) For checking the correctness or otherwise of the demand, levy, collection ,
recovery, suspension and remission of land revenue including non agricultural
assessment etc. detailed instructions, given in various chapters of this Manual should be
borne in mind. Glaring omission and commission noticed in the audit should be brought
to the notice of higher authority through Inspection Reports and Audit notes.

v) The effectiveness of audit depends largely on the documents and records made
available for audit in the offices of the taxation authorities and hence it should be seen
whether there is proper documentation in regard to levy, assessment and collection of the
land revenue, whether all demands due are properly and promptly raised in accordence
with the laws and rules governing the same. This should be done by tracing all receipts
right from the source to their final accounting in government Books.

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 vi) before taking up audit of Tahsil Office, field parties should issue
Questionnaire in the prescribed form, as given in Appendix 4 at latest a fortnight before
the date of commencement of the audit.

14.5 Special Instructions for Bombay City Land Tenure : Audit :

Land in Bombay City is comprised of two types of tenures.

1. Permanent tenures (called special and Inami)
2. Revisable tenures.
Instructions in brief regarding quantum and scope of these tenures are given below :
The permanent tenures viz. i) Pension and Tax, ii) Quit and ground rent, iii) Fares,
iv) Sanad are very old and revenue fixed of the time of initial grants still continues to be
recovered. The grants have been perpetual in nature. The State Government have since
abolished the absolute right of the holder to pay the same old assessment for all time to
come by virtue of enactment of Bombay city (Inami and special tenures). Abolition and
Maharashtra Land Revenue Code(Amendment) Act, 1969, which came in force from
1/8/1971(Appendix 42 of Maharashtra Land Revenue Manual Volume-I). The work of
revision of these assessment is still in progress and the whole basis of revised assessment
would come under the purview of audit, as soon as revised assessments are finalized by
government and introduced. Pending revision of assessment, the local audit should
concentrates on collection and accountal of revenue realised from the holdings.
ii) Revisable Tenures such :
1) Government toka
2) Land Newly assessed
3) Lease hold IX L.R.
4) Lease hold B.R. (Backbay Reclamation Scheme).
5) Tenancy at will i.e. renting for short period for the purpose of circus plot,
exhibition etc.
The incidence of revenue in Revisable Tenures is more. It is still greater in case
of lessee under Backbay Reclamation Scheme. The assessment aspect in respect of these
tenures can be examined in detail. Audit will ensure terms of exemption have been
adhered to by the grantee. For this purpose, lands can be divided into three categories viz.
i) Lands paying revenue or rent either fixed or otherwise.

92
 ii) Lands exemption from paying land revenue/land held by Corporation or
other local bodies/ institution and.
iii) Lands lying vacant whose revenue potential is yet to be exploited by
Government.
14.6 Decision of the Comptroller and Auditor General of India :-
In land revenue effective audit in possible only if complete link of all the documents right
from the Patwari to record book of Tahsildar is made available and examined in audit. it
has, therefore, been decided that in respect of audits of land revenue receipts information
as the records seen and record not produced to audit should be incorporated in the report
itself.
(CAG’s letter No.221-Rev.A.IV-77-73 dated 13-8-73).

14.7 The form of local audit reports should comprise three parts, viz. Part-I containing
unsettled objections and persisting irregularities Part-II containing Major Irregularities
and objections (These should cover cases of over and under assessments of substantial
money value and other important aspects of taxation and taxation administration for
which action at higher levels may be required.) and Part-III containing minor
irregularities which should be complied by the Taxation Officers at their own levels.
Part-III should be issued on the spot. The compliance is verified during the next audit.
Monetary limit for pursuing objections through Part-II of Inspection Report and monetary
limits for preparing draft paragraphs for the Audit Report are as follows :
i) Under/over assessment having tax effect of Rs.5000/- or more to be pursued
through Inspection Report.
ii) Minimum monetary limit for the purpose of preparing draft paragraph is
Rs.5,00,000/-
With a view to reducing the growing pressure of work at Head Quarters it has been
decided to enhance the existing limit of Rs.100/- and below for inclusion of objection in
Part-III of the Local Audit Report to Rs.500/-. However, all objections to where
important law points are involved and objections in respect of defects in the
system/procedure/machinery/Rules orders may be included in part-II B irrespective of
money value. And persisting irregularities; part-II containing major irregularities and
objections,
(CAG’s circular No.15 of 1980 issued on 28-7-1980.)

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14.8 As the audit of Collection is also on important part or receipts audit, it has been
decided that while conducting audit of land revenue receipts in Taluka Office, Revenue
recovery cases pertaining to other Taxes and Duties (referred to Taluka Office for
collection) should also be checked by audit parties. But this objections/irregularities
pertaining to recovery of these taxes and duties or any remission thereby by the
respective departmental authorities which came to light during the course of audit should
not, however, be reflected in the audit report of land revenue. Such objections should be
reflected in the audit report of the respective taxes/duty e.g. objections relating to sales
Tax recoveries may be shown in the audit report on Sales Tax, those pertaining to
recovery of Abkari dues in the audit report on the State Excise Duties, etc./ (CAG’s
circular No.14 of 1972 received under No.223-Rec.A.A.(IV/77-73 dated 13-8-73).

14.9 A para as to the records requisitioned but not made available to audit, if any, may
be incorporated in each local audit report. A note as to the records actually seen by the
party during the course of audit should invariably be noted in the Audit Note Book of the
relevant unit under proper attestation of the officer in charge of the part for scrutiny in the
State Receipt Audit Head Quarters as well as for the guidance of the next audit party
(CAG’s letter No.806-Rep.A/IV/30-73 dated 15-10-1973).

14.10 One of the important checks in audit is to see whether the reconciliation is
actually done by the departmental officers regularly. In additions to that review, two
months credits as appearing in departmental records may also be checked with the
original records of the treasury. Wherever possible so also ensure that the money
recovered has actually been credited into Treasury. The above checks have already been
prescribed in CAG’s circular letter Nio.1320-Rev.A/8/73 dt.5-3-1973 which are reiterated
for guidance and compliance. (Circular No.13 of 1971 issued under CAG’s No.576-
Rev.A(IV)/136-73 dated 8-8-1971).

14.12 It has been decided that the objection book should be closed monthly by a Branch
Officer as is being done on the civil side but in order to ensure proper pursuance of
objection it should be submitted to the Group Officer quarterly. (Circular No.9 of 1979.
CAG’s letter No.381-RAVI/12-73 dated 31-5-1978.)

94
14.13 It has been decided that all fair copies of the local audit reports should be signed
and communicated by Sr.DAG/DAG(RA). This would enable them to have a firm grip
over the important objections and material to guide audit parties (Circular No,.9 of 1978)
CAG’s Circular No.381-TA/IV/12/73 dated 31-5-1978).

14.14 When the Group Officer is on tour, the fair copies of the Local Audit Reports may
be signed by one Audit Officer for Sr.D.G.(RA)/DAG(RA)’ in case another Group
Officer has not been nominated to look after the urgent work relating to this charge.
(Circular No.21 of 1978 CAG’s circular No.701-RA/IV/12-77 dated 26-9-1978).

14.15 It has been decided by the Comptroller and Auditor General of India that where
audit of State Receipts is under taken by the State Accountant General(Receipt Audit
Wing), audit of contingent expenditure incurred by the various disbursing offices in the
Revenue Department concerned (other than directing offices) may be entrusted to the
State Receipt Audit Parties visiting those offices. (CAG’s letter No.101-REV-A-
III/145/72-III dated 18-4-1973).

14.16 Submission of Audit Reports to Receipts Audit Head Quarters Section.

Field parties should submit audit reports with a covering title sheet in the specific
form prescribed in Annexure I within Five days after completion of audit.

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 CHAPTER – 15
THE MAHARASHTRA AGRICULTURAL LANDS (CEILING ON HOLDING)
ACT 1961.

OBJECTION OF THE ACT :

15.1 With a view to providing for a ceiling on the holding of agricultural land, the
acquisitions and distribution of agricultural lands on excess of such ceiling to the
landless and other persons, the Maharashtra Agricultural Lands(Ceiling on holders) Act
No.XXVII of 1961 was enacted by the State Legislature. The ceiling prescribed in the
1961, Act were revised by the Maharashtra Ct. No. 21 of 1975.

15.2 CLASSIFICATION OF LANDS :

The lands in the State have been classified into the following five classes :
i) Perennially irrigated land capable of yielding two crop in a year that is say
(a) Land irrigated seasonally as well as perennially from irrigation sources constructed or
maintained by State Government or Zilla Parishad or from any other natural sources
of water.
ii) Land irrigated perennially by a government owned and managed lift form any sources
constructed or maintained by the State Government or by any Zilla Parishad or from any
other natural sources or water;
(b) Land (other than land falling in clause (c) ) which has no assured perennial supply of
water or irrigation, but has an assured supply of water for only one crop in a year, that is
to say, land irrigated-
(i) Seasonally by flow irrigation from any sources constructed or maintained by the
State Government or by any Zilla Parishad or from any other natural sources of
water; or
(ii) Perennially by lift (other than a lift referred to in item (ii) of clause (a) from any
sources constructed or maintained by the State Government or by any Zilla
Parishad or from any other natural sources of water; or
(iii) Perennially from a privately owned well situated on land within the irrigable
command of any irrigation project, or in the bed of a river, stream or natural
collection of water or drainage channel which is a perennial sources of water
96
(c) Land irrigated seasonally by flow irrigation from any source constructed or
maintained by the State Government or by any Zilla Parishad or from any other natural
sources of water with unassured water supply, that is where supply is given under water
sanctions which are temporary, or where such sanctions are regulated on the basis or
availability of water in the storage.
(d) Dry crop land, that is to say, land other than land falling under sub-clause (a), (b)
or (c) of this clause situated in the Bombay Sub-urban District and Districts of Thane,
Ratnagiri and Bhandara and in the Brahmapuri, Gadchiroli and Sironcha Talukas of the
Gadchiroli District and which is under paddy cultivation for a continuous period of three
years immediately proceeding the commencement date ;
(d) Dry crop land, that is to say, land other than land falling under sub-clause (a), (b) (c)
or (d) of this clause.
(S.2(5) of Act)

15.3 Declaration by Land Holders of Surplus Land :

Every person holding land in excess of ceiling limit prescribed in the Act is
required to furnish a return within the time limit prescribed to the Tahsildar in whose
jurisdiction such land held by him is situated specifying the particulars of such land.
15.4 Declaration of surplus land :
After due enquiry the Collector shall make a declaration regarding surplus land in
excess of the ceiling area and after such declaration the collector shall take the possession
of the surplus land. If a person holding excess land had failed to furnish a return without
reasonable cause or has furnished the incorrect particulars, the Collector may hold an
enquiry and impose punishment/penalty on such person. In cases where the Tribunal has
been constituted for the purposes of this Act, the Tribunal alone shall exercise the power
of the Collector under the provision of this Act.

15.5 Damages for use and occupation of surplus land :

A person or as the case may be a family unit which possesses on or after the
commencement date, any land in excess of the ceiling area shall be liable to pay to the
State government for the period form the year following the year in which the excess
areas so held is declared surplus till the possession of surplus land is taken under Section
21, such compensation for the use and occupation of such land as the Collector may fix in
the prescribed manner. (Section 21 A(I) of the Act )
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15.6 Compensation :
In each of the district and taluka specified in column I of the first schedule, for
each call of land described in column 2,3,4, 5 and 6 of that schedule, the amount of
compensation for surplus land acquired by the State government under Section 21 shall
consist of –
(a) in the case of dry crop land falling under column 5 or 6 the price calculated at the
price per hectare specified in column 7 of that schedule, or
(b) in the case of land falling under(column 2, 3 and 4 ) of the Schedule, the price
calculated at the price (per hectare) of dry crop land increased by one hundred, by
fifty and by twenty five percent, respectively.
(Section 23 of the Act)

15.7 Distribution of Surplus Land :

Excess land over and above the ceiling acquired by the government vests in the
state Government and shall be granted in order of priority as set out in the Act on
payment of occupancy price as determined in Section 27 of the Act.
15.8 Bar on Transfer :
Land granted under the provisions of this Act is normally not transferable by way
of sale, or by way of gift, mortgage, exchange, lease or otherwise or sub-divided by
partition or otherwise. Any transfer or division of land and any acquisition thereof in
contravention of the provisions of this Act is to be treated as invalid and as a penalty
therefore such land stands forfeited and vest in the State Government.
15.9 For the implementation of the basic of provisions of land ceiling Act the
following points to be seen :
i) Whether the time limit as prescribed, by which distribution of the lands taken out
has been adhered to ?
ii) The estimated areas of surplus land.
iii) The area in respect of which and the number of persons on whom notice have
been issued.
iv) The area of land actually taken over.
v) Number of cases in which persons have filed appeals, and the area involved.
vi) Number of cases in which appeals have been disposed of and number pending
disposal.

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vii) How, in terms of the Law or executive instruction the vested lands were proposed
to be disposed of or settled, and to what extent land have been so disposed of and
settled ?
viii) The loss of revenue or revenue foregone owing to non acquisition of land and non
settlement of vested lands.
ix) Cases in which lands have been illegally or fraudulently disposed of or transferred
with view to avoiding operation of ceilings, if
x) Levy and collection of premium and other dues which have become due on the
allotment of surplus land from the allottees as per provisions of the
Act/Rules/Orders.
xi) Determination of the compensation payable to holders of surplus land vested with
Government but not yet allotted.
xii) Calculation of damage fee as obtaining in West Bengal from ex-intermediaries
and others for the period they were in possession of surplus land after the dates of
vesting has been correctly calculated. Other aspects such as :
(a) Delay in taking possession of surplus vested land.
(b) Allotment of vested land to ineligible persons and
(c) Acceptance by competent authority of inadmissible transfers or claims on
disposals of land to evade the operation of the land ceiling laws, may not be
commented , if no loss or foregoing or revenue is involved. (See section 18 of
the Act ).

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 CHAPTER – 16
AUDIT PROCEDURE

16.1 The general principles governing the audit of ‘Receipts’ as laid down in chapter 4
of Section -II of the Comptroller and Auditor General’s manual of standing orders
(Technical) Volume-I and introductory chapter-I of this manual should be followed as
basic guidelines for the audit of “Receipt”. As the effectiveness of audit conducted
depends to a very great extent on the documents and records maintained in the offices of
the primary taxation authorities, prime attention should be to see whether there is proper
documentation in regard to levy and collection of the various taxes. It should be the
endeavour to ensure that all demands due are correctly and promptly raised in accordance
with law, rules and regulations governing the same and to trace all receipts from the
source to final accounting in Government Books.

16.2 Audit should cover not only receipts due to government under various Acts and
their Allocation to the proper heads but also refunds authorized by assessing appellate
authorities.

16.3 The list of records maintained by the department is given in Appendix 2. The
more important checks to be exercise in respect of various items of revenue administered
by the State Revenue Department are indicated below :

A. AUDIT OF BASIC ASSESSMENT RECORDS RELATING TO LAND

REVENUE :
The main point of check are to see :
i) that demands are correctly calculated in accordance with the rates noted in the
Assessment Registers, which are prepared by the Settlement Office, and are
correctly carried forward to the current, Demand, collection and Balance Register.
ii) That the position of arrears of Land Revenue is correct and satisfy itself that
proper action has been taken for their recovery.
iii) That fields transferred from agricultural assessment register to non agricultural
use are taken to village form-II/Taluka form-II.
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iv) That changes in classification of lands, rates of assessments are properly noted in
Taluka forms.
v) That total extent of land as per Tharavband, Form-V agrees with the Settlement
Register i.e. Assessment Register Form-I.
vi) That there is arithmetical accuracy in assessment.
vii) That there is no delay or omission in the survey and settlement of unsurveyed
areas, Inam land, Zamindari free holds, lease holds, watans, etc.
viii) That the special assessment rates for lands i.e. increased land revenue,
Employment Guarantee Cess or Irrigated lands, and Education Cess on
commercial crops as per order of Government have been levied, demanded and
collected.
ix) That the land deforested and converted into agricultural lands, have been
assessed properly.
x) That the Jamabandi Sheets memoranda, do not reveal any major irregularities, in
the assessment and of revenue and other revenue functions of Taluka.

16.4 Audit of Local Cess :

The main points of check are to see :
i) that all items constituting ‘ordinary land revenue’ under Section 144 of the
Maharashtra Zilla Parishd and Panchayat Samitti Act, 1961, have been subject to
local cess, as laid down thereunder.
ii) that the rate of cess is as per directive of government from time to time.
iii) That the cess has not been levied, demanded and collected on lands, within the
“Municipal Limit’ of Municipal Corporation, Municipal Councils and contonment
areas & Notified areas committee but has been levied only in rural areas.
16.5 Audit of Miscellaneous revenue :
Following audit points, regarding collection and arrears of land revenue, may be
seen :
i) Whether accounts records have been correctly maintained and reconciliation of
figures made with the treasury accounts ?
ii) Whether the periodical returns of arrears submitted to the Collector contains
correct information and there are no errors/arithmetical mistakes ?
iii) Whether action taken for recovery was adequate and whether coercive measures
had been taken for non payment of revenue ?
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iv) Whether penalties has been levied in cases of belated payments of Government
dues ?
v) Whether effective and deterrent action had been taken against the defaulters of
land revenue?
vi) Whether recovery of dues of other departments, other State Government and
Union government has been effected as arrears of land Revenue ?
vii) Whether the accounts forms are deficient of any information/particulars or
otherwise defective ?
viii) Defects in the administrative machinery embezzlement, fraud etc. owing to non
observance of the provisions of rule/orders or otherwise.

16.6 Audit of Remittance :

Two main points of check are to see :
i) That the totals of daily collections are correctly made.
ii) That the collections are remitted into treasury on the prescribed dates.
iii) That the amounts purported to have been remitted into the treasury have been
included in the treasury accounts(the office copies of the challans have to be
compared with the treasury credits.)
iv) That the reconciliation has been effected between department accounts and
treasury accounts.
v) That refunds have been sanctioned by the proper authorities and safeguards made
against double claim.
vi) That the register of receipt book should checked to see that a proper account has
been kept of all the receipts books.
vii) That the challans received from the Talathi/Patwari have been entered in the
challans register and at the end of each month reconciliation is made with
reference to daily collection returns and the receipts and treasury challans
submitted by Talathi/Patwari to the Tahsildar.
viii) That all used receipts books, supplied to the Talathi/Patwari with counterfoils of
receipts are returned to the Tahisildar, that the amount shown as received in the
counterfoils, have been noted in the Cash Book and that all collection are
deposited in the Treasury as endorsed by the Tahsil Revenue Section.

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16.7 Audit of land transferred by Government to Companies, Corporations for
establishment of Industries, Dams and reservoirs for generation and distribution of
electricity and plantations.

Building sites are granted to companies and corporation by State Government

for industrial or commercial purposes on alienable and importable tenures on payment of
occupancy price, as fixed by Government, and subject to following conditions :-
i) That the land shall not be disposed of except along with the constructions thereon
and the factory, plant and installations, if any, and the land so disposed of shall
not except with the approval of be used for a purpose other than the purpose for
which it was initially granted.
ii) That on disposal of the land, along with the factory, plant, structures and other
installation, by way of sale the government shall be entitled to half the unearned
income and where such land is sold without any constructions aforesaid the State
Government shall be entitled to unearned income not exceeding 90 percent as the
State Government decide.
(Unearned income means an amount equal to the difference between the price
realized by way of sale and the occupancy price paid to Government, at the time
of grant of land to the company).
(Authority Rule 31 of the Maharashtra Land Revenue(Disposal of Government
Lands) Rule 1971).
2) While conducting audit of such lands the following points should be seen :
a) Cases of non levy and short levy of land revenue cess and surcharges in respect of
the area transferred on the basis of rates as per conveyance/lease deeds, if any
may be pointed out.
b) Any concession or benefit allowed to any corporation in the assessment and
payment of land revenue with reference to prevailing rate may be highlighted.
The quantum of benefit or concession may also be specified. The computation
should be made on logical and reasonable basis.
c) How far these concessions given by Government by virtue of executive power or
otherwise are legally valid may be seen with reference to deeds of transfer/lease
vis-a-vis the provisions of the Act/Rules/Orders. Any concession/benefit which is
not covered by the provisions of the Act or beyond the powers of government
may suitably be commented upon.
103
d) Whether there is any legal hurdle in the revision of rates in respect of the arrears
comprised in those transfers ?
e) Whether land revenue is paid by the companies/corporations even now on the
basis of non agricultural assessment as specified in the Land Revenue
code/Manual/Act.
f) Since the date of transfer whether any survey and settlement of lands was effected
by government in the district/Tahsil in which land in question is situated and if so,
the revenue foregone on account of non levy/non collection of land revenue on
the basis or revised rates fixed by the collector/Board of Revenue, may be
pointed out.
g) Surplus Land :
i) Whether the companies/corporation are holding any land surplus to their
requirements and if so breakup of their land out of acquired land the government land
may be given. According to agreement deed the mode of disposal of the surplus lands
may be examined and any deviation therefrom resulting in loss of revenue may be
commented upon.
ii) Whether any portion of surplus land has been disposed of by transfer or otherwise
with or without the permission of government to any sister or subsidiary company and if
so, its impact on the receipts of Government may be commented upon. Capital gain
arising from such transfer nay be referred to Income Tax Revenue Audit (Head Quarter).

104
 PART – VI
(Appendices )
APPENDIX-I ‘(A)’
A: Rules regarding Assessment of lands diverted for N.A. purpose in Western
Maharashtra Regions (Bombay L.R. Code 1879 & Bombay L.R. Rule 1921).
( Reference Para 2.2.5)
Section 45 : All land, whether applied to agricultural or other purpose and wherever
situated, is liable to the payment of land revenue, according to rules, except such as may
be wholly exempted under the provisions of any special contract with Government or
any law for the time being in force.
48(1) The land revenue leviable on any land shall be assessed or shall be deemed to
have been assessed as the case may be with reference to the use of land.
a) For the purpose of agriculture.
b) For the purpose of building and
c) For the purpose other than agriculture or building.
2) Where land assessed for use for one purpose is used for any other purpose,
assessment fixed under this Act upon such land, shall notwithstanding that the
term expired be liable to be altered and fixed at different rate.
3) Where land held free of assessment on condition of being used for any purpose is
used at any time for any other purpose, it shall be liable to assessment.
In a decision, Bombay High Court held that the altered assessment should always
be imposed according to the rules framed under Section 48 of the code, which may be
prevailing at the time of conversion and in no circumstances imposition can be given a
retrospective effect.(Shatpurji Vs Collector Bombay, ILR 9 Bom 486)

Extract of Bombay Land Revenue Rules 1921.

80. Where un-alienated land assessed or held for purpose of agriculture only is
subsequently used for any purpose, unconnected with agriculture, the assessment upon
the land, so used shall be altered under sub section (2) of Section 48 and such alternation
shall be made by the Collector.

105
80-A On expiry of the period for which the assessment of any land and assessed or held
or used for any non agriculture purpose has been fixed, the assessment shall be revised
by the collector from time to time.
80-AA Where non agriculture assessment in respect of any land held or used for any
agriculture purpose inmerged than territories and merged areas has been fixed in
accordance with the prevailing in such territories immediately before their merger , then
irrespective of the fact whether or not the term for which such assessment is payable has
been fixed or whether where such term has been fixed but the term has not expired it
shall be lawful for Collector to revised from time to time the rate of non agricultural
assessment on such land in accordance with rules contained in chapter No.XIV.

(1) Under clause XXVIIA below rule 85 of the Bombay Land Revenue Rules 1921 the
concession of paying 5/8 of the non agricultural assessment for residential purpose in
developed area is continued with effect from 1-8-47 except in cases of land exclusively
devoted to an industrial and commercial use.

81. For determining generally the rate of non agricultural assessment, leviable the
Collector shall, subject to the approval of divisional officer, from time to time by
notification, published in the official gazette devide the villages, town and cities in his
district into two classes. The assessment shall then be fixed by the Collector, at his
discretion as per square yard, within the following limits

Maximum : For Class I land 2 paise

For class II land 1 paise.
Minimum : The agricultural assessment. in localities where there is no keen demand
for building sites, non agricultural assessment is leviable at the above rates. In growing
towns and villages, however, it is desirable to increase the rate of assessment pari passu
with the progress of building development by the application of standard rate under rule
82, fixed on the full market value of land as building site. The maximum rate of Rs.50
per acre, prescribed under Rule 81 is equivalent to full market value of Rs.2,000/- per
acre. In Town where land is worth more that Rs.2,000/- per acre a point is reached where
there is sufficient justification for the application of standard rate under Rule 82 –
Government consider that a full market value of Rs.3,000/- per acre is the point, at which
standard rates should be fixed in all growing towns.
106
82. In any area in which, on account of there being a keen demand for building sites
or for any other special purpose the State Government may, by notification in the official
gazette, direct that this rule shall be applied, the rate of non agricultural assessment shall
be determined in accordance with the provisions therein (Rule 82 of B.L.R. Rule 1921).

85. Non agricultural assessment shall ordinarily be levied upon the whole of the land,
within the compound of a building and not merly upon the land covered with building.
However with effects form 1-8-1947 the concession of paying 5/8th of the non
agricultural assessment should be given only to the non commercial and non industrial
use of lands.
86(a). Where permission to use the land for any non agricultural purpose is given under
Section 65, the non agricultural assessment upon such land shall be levied from the day
on which non agricultural use begins.
(b) In the case of building sites held by co-operative Housing Societies or the Bombay
Housing Board, which are not built upon, non agricultural assessment shall be levied
from the three years subsequent to the date on which possession of the land was taken or
till the date on which non agricultural use of land begins whichever is later.

Rule 86(A) : Graduated levy of non agricultural assessment :

If the non agricultural assessment fixed in accordance with the rate determined
under Rule 82 in respect of land used for building purpose is revised and increased such
revised non agricultural assessment shall be levied in the manner stated in the rule.
87. The period for which the non agricultural assessment is to be fixed shall ordinarily be
30 years, except in the Bombay Suburban District where on account of its special
conditions the period shall ordinarily be 50 years. Grave yards or other land set apart for
public or special purposes and therefore unassessed may nevertheless be privately owned,
when the use of such land is changed they can be assessed (Note 227 P. 109 of M.L.R.
Rule 1921).

107
 APPENDIX – I(B)
(PARA – 2.2.5)
Rules regarding assessment of land diverted for N.A. purpose in Ex.M.P.
Region (Vidarbha).
Section 51(i) All lands to whatever purpose applied and whatever situated, is
liable to the payment of revenue to the State Government except such land as has been
wholly exempted from such liability by special grant or contract with the State
government or under the provisions of any law or rule for the time being in force.

2. Such revenue is called ‘Land Revenue” and that term include all money payable
to the State Government for land, notwithstanding that such money may be described as
premium, rent, lease money, quit rent or in any other manner in any enactment, rule
contract or deed.

52(1) The Assessment of land revenue on any land shall be made or shall be deemed to
have been made as the case may be with reference to the use of land.
a) For the purpose of agriculture.
b) As sites for dwelling houses and for purposes other than those specified in
item (a) and (c)
c) For industrial or commercial purpose.

2 Where land assessed for use of any one propose is diverted to any other purpose,
the land revenue payable upon such land shall notwithstanding that the term for which the
assessment may have been fixed has not expired, be liable to be altered and assessed in
accordance with the purpose to which it has been diverted.
3 Where the land held free from the payment of land revenue on condition of being
used for any one purpose is diverted to any other purpose, it shall become liable to the
payment of land revenue and assessed in accordance with the purpose to which it has
been diverted.
4. Omitted.
5. Where land is diverted and land revenue is assessed thereon under the provisions
of the section, the Collector shall also have power to impose a premium on the diversion
108
in accordance with rules made under this code. As per rules, when the land held for
agricultural purpose is diverted with permission to any non agricultural purpose, premium
shall be imposed as follows :
i) Class I village having Municipal councils with population of 10,000 or more Rs.500/-
per acre.
ii) Class-II villages having population of 5,000 or more but less than 10,000 Rs.300/- per
acre.
iii) Class-III villages with population of 2,000 or more but less than 5,000 Rs.150/- per
acre.
iv) class-IV population less than 2000. Nil. Provided that no premium shall be imposed
for the diversion of any land which immediately before the coming in force of its code, as
land in Malik Makbuza’ right.

Mode of N.A.A. on land in Urban Area :

Under Section 94(2) of the Madhya Pradesh Land Revenue code 1954, the
average annual letting value of lands in each block shall be determined on the basis of all
transactions of sales and leases in such block during the period of twenty years,
immediately preceding the year in which the letting value is to be determined provided
that if the transactions, which have taken place in respect of any block are not sufficiently
representative, the transactions during the same period of adjacent block may be taken for
determining the letting value. The standard rate of assessment for land held for purpose
of sites for dwelling houses (for residential purpose) shall be equal to 33-1/3 percent of
the average annual letting value and 50 percent thereof, if held for industrial and
commercial propose. Annual letting value is determined on the basis of free hold market
value of the land diverted for N.A. use and at the rate of one anna one rupees i.e. (1/16)
of the freehold market value.

94. For the purpose of assessment, the area in town shall be formed into blocks,
regard being paid to use of land for industrial, commercial and residential or other special
purpose as prescribed.
95. The minimum and maximum limits for rate of assessment shall respectively be
one and quarter and ¾ of the standard rate in force for the time being.

109
96. The Collector shall assess the plot at a rate within the limits prescribed by Section
95 regard being paid to the use, situated and other advantages or disadvantages, attached
to such plot, provided that if in the case of lands, which are being assessed for a purpose
with reference to which they were assessed immediately before the revision, the
assessment so arrived at exceeds in the case of agricultural land one and half time the
land revenue or rent and in the case of other lands six times the land revenue or rent
payable immediately before the revision. The assessment shall be fixed at one and half
time such land revenue or rent in the case of agricultural land and at six times such land
revenue or rent in the case of non agricultural land of other lands.

Extract of Rules, made by Ex.M.P. Government regarding Regulation of assessment and

imposition of premium on diversion.
----------------------------------
No.861-4767-XXVIII Nagpur dt.13-4-1956
i) Diversion from an Agricultural purpose to a non agricultural purpose.

(a) Non urban areas :

If any land assessed at agricultural rate is diverted to a non agricultural purpose,
the assessment thereon shall be revised in accordance with any of the methods, according
to the circumstances of the case, viz :-
a) If the area in which the land situated has an assessment rate as approved by the State
government, then in accordance with the assessment rate so prevailing.
ii) If there be no assessment rate in force then the collector shall calculate the
estimated rental value of the land, to be assessed in accordance with Rule 33, 34, 35 and
36 of the rules, regarding the revenue survey and settlement in non-urban areas under
clause (viii), (x) and (xii) of Sub-section (2) of Section 237 of the Madhya Pradesh Land
Revenue code 1954 and fix the assessment of the land upto the maximum of 33% of the
estimated rental value of the land, taking into account the advantages or disadvantages
and other circumstances peculiar to the plot to be assessed.
iii) For fixing the actual assessment of a plot less than on hundred sq.feet rate of
assessment shall be proportionate to that fixed for one hundred sq.ft of land. In other
cases, the area to be assessed shall be on area measured in sq.ft. which is divisible by 50,
fraction of 50 being ignored. The assessment shall be rounded off to the nearest naya
paisa.
110
(b) Urban areas :

If any land in urban area assessed at the agricultural rate is diverted to a non
agricultural purpose, its assessment shall be altered by fixing the actual assessment on the
basis of the standard rate duly approved by Government prevailing for the area, in which
the land is situated. If, however, there is no standard rate in force, the average letting
value of the land shall be calculated and standard rate determined in accordance with the
provisions of rules 13 and 14 of the Madhya Pradesh non agricultural lands in Urban
Area Assessment Rule, 1955. The collector shall fix the actual assessment on individual
plot, diverted to a non agricultural purpose, on the basis of the standard rate approved by
the State Government subject to upward and downward variations of 25 percent.
For fixing the actual assessment of a plot less than 100 sq.ft, the rate of
assessment shall be proportionate to that fixed for one hundred sq.ft of land. In other
cases the area to be assessed shall be an area measured in sq.ft. which is divisible by 50,
fraction of 50 being ignored. The assessment shall be rounded off to the nearest naya
paisa.

Extracts of rules regarding Non-agricultural assessment of land :

(No.2557-93-XXVIII Nagpur dated 19-12-1955),
Rule No.32. The basis on which the assessment of non agricultural lands shall be worked
out would be the estimated rental value of non agricultural lands of the village. ]

33. In order to estimate the figures of rental value correctly, the settlement Officer shall
ascertain the free hold value of non agricultural lands separately for
(i) lands used as dwelling houses and like purposes and
(ii) lands used for industrial and commercial purposes on the basis of the transactions
taken place during the twenty years (or such shorter period as may be found
suitable) preceding the year of enquiry, on the basis of transactions mentioned in
sub-clause (i) to )vii) to this rule.
34. After the free hold value on non agricultural land in the village, or if necessary, in
an adjoining villages is ascertained as specified in rule 33, the Settlement Officer shall
determine the normal free hold value of non agricultural lands, by calculating the average

111
value of such land for 100 sq.ft, as far as possible on the basis of transactions falling
under clauses (i) to (vii) of Rule 33.
36. After the normal free hold value of non agricultural lands in a village is
determined Settlement Officer shall work out the figure or rental value per 10 sq.ft by
calculating it at one anna in the rupee on the normal free hold value of land in the village
rounded off to the nearest multiple of two anna where the figure works out to a sum in
excess of four annas but not in excess of one rupee per 100 sq.ft. and to the nearest
multiple of four anna where it works out to a sum in excess of one rupee per 100 sq.ft
where the average letting value works out to a figure equidistant from the higher and
lower multiple, the lower multiple should be deemed to be the nearest. On the basis of
the figures so determined, the Settlement Officer shall calculated the estimated rental
value of the non agricultural land to be assessed

37. On the basis of the figures of estimated rental value so ascertained, the Settlement
Officer shall calculate the assessment rates, subject to the maximum of 33 percent
prescribed by Section 76(4) and report those rates for approval of the State Government
justifying the fixation of assessment upto the full maximum of 33 percent or at a lower
level, as the case may be.

38. On approval of the assessment, the Settlement Officer shall fix fair assessment on
each plot, as required by Section 74.
B-Extract of Rules regarding assessment of non agricultural lands in urban areas.
No.2341-261-XXVIII dated 21st November 1955. The Collector shall ascertaine the free
hold value of non agricultural lands in each block, on the agricultural lands in Urban
areas(Assessment) Rule 1955, the collector shall determine the average free hold value of
on agricultural land in the block by calculating average value of such land per hundred
sq.ft. If in any block the average free hold value of non agricultural land can not be
estimated, in the manner specified above, it shall be determined on the basis of
transactions during the same period of adjacent blocks. After the average free hold value
of non agricultural land in a block is determined, the Collector shall work out the figure
of average annual letting value per hundred sq.ft. of land in each block, by calculating it
at one anna in the rupee on the average free hold value of the land in the block, hundred
to the nearest multiple of the two annas, where the figure works out to a sum in excess of
four annas but not in excess of one rupee per hundred sq.ft. and to the nearest multiple of
112
four annas where it works out to a sum in excess of one rupee per hundred sq.ft. where
the average letting value works out to a figure equidistant from the higher and lower
multiples, the lower multiple should be deemed to be the nearest.

3. Under rule 13 the standard rate of assessment per hundred sq.ft of land, shall be
equal to :
i) One third or the average annual letting value in the case of lands, used for dwelling
houses and the like.
ii) One half of the average annual letting value in the case of land used for industrial &
commercial purpose.
iii) The standard rates, so arrived at shall be reported by the Collector to the State
Government, for approval. The standard rate, so approved with or without modifications,
shall be published in the gazette.

4. Actual Assessment on individual plots shall be fixed on the basis of these rates
(Rule 15) subject to an upward or downward variation of 25 percent as provided for in
Section 95 and that the revised non agricultural assessment shall in no case be in excess
of six times the original non agricultural assessment. For fixing the actual assessment of
the plot less than one hundred sq.ft. the rate of assessment shall be proportionate to that
fixed for one hundred sq.ft. of land. In other cases, the area to be assessed shall be an
area measuring in sq.ft. which is divisible by 50, fraction of 50 being ignored. The
assessment shall be rounded off to the nearest naya paise.

113
 APPENDIX – 1(C)
(Referred in Para 2.2.5)

Rules regarding assessment of lands diverted for non agricultural purpose in Ex-
Hyderabad State.
Extracts of Rules No.71 and 72 of the Hyderabad Land Revenue Rule, 1951.
(Notification dated the 3rd January, 1951).

71. More of assessment in the event of diversion of Agricultural lands to non agricultural
purpose :.
1) In the event diversion of dry agricultural lands to non agricultural purposes, the
following special assessment shall be levied :.

a) Rs.5/- per acre, in the case of land situated in the villages of other than the Tahsil or
District Head Quarters.
b) Rs.8/- acre in the case of land, situated in the Tahsil Head Quarter.
c) Rs.12/- per acre in the case of land situated in the district headquarters. Providing
where such land is situated within the Municipal limits of a village having a
population of 15,000 or more the Collector may levy an assessment of Rs.15/- per
acre.
2. In the case of wet land diverted to non agricultural purpose, the rate of special
assessment shall be 1 1/4 times of the wet assessment if the land is situated in a village
other than Tahsil or district Headquarters and 1 ½ times if the land is situated in the
Tahsil or district headquarters.

Explanation :

a) For the purpose of this rule, land lying within six miles of Municipal limits, of the
cities of Hyderabad and Securandabad, shall be deemed to be lands situated in the
district Headquarters.
b) Where the area diverted to non agricultural purpose has been demarcated by trenching
or fencing or by raising a wall only such areas shall be subjected to special
114
 assessment. Where no such demarcation has been made, the whole survey number of
which the area forms a part, shall be charged special assessment.

72. Special circumstances under which lands shall be exempted from the levy of special
assessment or ordinary land revenue :-
1) Notwithstanding anything contained in Rule 71 agricultural lands used for public
purposes, like hospital, School, and orphanages, etc shall be exempted, not only from
the levy of special assessment but also from the ordinary land revenue.
2) In places which are subject to local taxes, lands acquired or used for roads, burial
grounds, burning ghats play ground and manorial pits and other like purpose, which
do not fetch any income to the local Government shall be excluded/execised from the
agricultural area, where, however, such lands have been diverted to purpose like
constructions of market, extension of population and slaughter houses, etc. which
fetch income, patta of such lands shall be registered in the name of local body and
special assessment levied
3) In village, where no local Government taxes are levied, lands acquired or used for
burial ground burning ghats, roads playground and the like purposes, shall be
exercised form the agricultural area and exempted from the land revenue provided
that where land is acquired for extension of village site and such extension is intended
for agriculturist classes or agricultural labour of schedule castes no assessment
whatever shall be levied and the land shall be exercised form the agricultural area.
But where such extension is for persons other than those mentioned above, special
assssment shall be levied.
4) Under the Hyderabad Land (Special Assessment) Act, 1952 additional special
assessment is leviable from the first June 1952 onwards, on lands in specified talukas,
where re-settlement is due. The special assessment is to be continued until the
assessment in pursuance of re-settlement operations are imposed. The rate of such
assessment is two annas and one annas per rupee of land revenue for dry and wet
lands respectively.

115
 APPENDIX – 2
(Referred to in paragraph 12.6 of the Manual)
Broad outline of Forms and Registers Relating to Revenue Accounts.

(A) At village level :

The first set of Accounts (viz. Revenue Accounts) consists of six villages. Forms
and three subsidiary register (Chapter-I of Maharashtra Land Revenue Manual Volume-
IV) ads detailed below :
(a) Village Forms :
i) Village Form-I : Register of lands
ii) Village Form-I-A : Forest Register
ii) Village Form-II :Register of non agricultural Revenue
iv) Village Form-III : Register of Alienated (Inami) Lands.
v) Village Form-IV Register of Miscellaneous land Revenue
vi) Village Form-V : General Abstract of Area and Revenue
(Tahravbandh)
(b) Subsidiary Register :
i) Village Form-I-B : Register of unoccupied Government lands.
ii) Village Form-I-C : Register of New Tenure properties and
properties vesting in the village Panchayat.
iii) Village Form-I-D : Register of surplus land under the Tenancy
and ceiling laws and.
iv) Village Form-I-E : Register of Encroachment.

Village Form-I :

This form is the starting point of revenue accounts. Column 2 to 8 of this form
are filled in from the Statement of area and assessment by survey numbers and sub-
divisions of survey numbers prepared by the Land Records Department. This form is
also called as “Akarband” in Akola, amravati, Buldhana and Yavatmal district or
“Shetwar Patrak” in Marathwada Districts. It exhibits all the lands in the village, by their
survey numbers area and assessment fixed thereon. All charges resulting in an alteration
116
in the agricultural assessment or the are of the survey number or the formation of new
survey number etc. are required to be reported to the /district Inspector of Land Records,
who after correcting statement, known as a “Kami Jasti Patrak”, with an abstract and
sketch map. On receipt of Kami-Jasti-Patrak the concerned talathi will correct village
Form-I and its abstract, accordingly. Following particulars are shown at the head of the
Form.
i) Year or original and subsequent revision of settlement or settlements.
ii) Year in which the next settlement is due and when it expires.
iii) Standard rates for different classes of land.
iv) Group in the settlement report in which the village is put and
v) Dates of installments for payment of land Revenue with authority.

The abstract of village Form-I is very important because upon this are founded
the village form V (the village Tharavbandh) and the taluka and district forms.

Form-I-A : Forest Register :

This is maintained only when there are more than five survey numbers notified or
set apart as forest. Other subsidiary register of form-I, viz. form I-B, to Form I-E are
maintained as per instructions contained in pages 108 to 111 of the Maharashtra Land
Revenue Manual Volume-IV.

Village Form-II : A Register of Non Agricultural Revenue :

The village form-II accounts for all the fixed Land Revenue on non agricultural
lands, in the village, just as village Form-I accounts for all the agricultural land revenue.
It is based on the register of non agricultural occupancies prepared under Rule 22 of
M.L.R.(Revenue Survey and Sub-division of survey numbers) Rule 1969. As this form is
controlled by Taluka Form-II a column showing “The entry number in Taluka Form-II’ is
provided for linking up entries in this form with corresponding taluka form,
facilitates(Jamabandi), in its present day meaning viz. audit of annual revenue accounts
and dispenses with the signing of each entry in this form by the Tahsildar.

ii) As regards writing of entries in the village Form-II, detailed instruction contained
in pages 118 to 122 of M.L.R. Manual Volume-IV may be seen for reference and
guidance.
117
iii) In case of city surveyed areas Gaothan, either orders of Kami Jasti Patrak will
emanate from the city survey officer or the District Inspector of Land Records to Talathi,
through the Tahsildar, who shall first make an entries in Taluka Form-II and then pass it
on to the Talathis concerned, for being noted in village form-II.
iv) In this form, all cases of non agricultural assessment fixed by the collector in
accordance with the provisions of Chapter-VII of the code and Section 36 and 68
of the Maharashtra Land Revenue code 1966, are noted.
v) All grants of leases of lands with special conditions are required to be noted in
Section III of village form-II with a view to reviewing these cases periodically,
so that special terms attaching thereto can be enforced timely. The very basis for
determining the amount of land revenue dues no lands used for non agricultural
purpose is village form-II and Taluka Form-II at village and Taluka levels
respectively. The total amount of non agricultural assessment as disclosed by this
register (V.F.II) is transferred to the Tharavband (T.F.V), which determines the
total Land Revenue demand of the villages, from various sources.

iii) Village Form No.III : Register of Alienated Lands :

Village form No.III is maintained to account for all fixed land revenue on
alienated i.e. Inami lands such as (1) Saranjam Inam, (2) Devesthan Inam, (3)
Miscellaneous lands, both agricultural and non agricultural. This register is required to
be maintained upto date by incorporating changes and new alienation that come for
noting through Tahsildar. From the abstract of this register corresponding Taluka Form
No.III is prepared and agreed. The main object of village form No.III is to account in
detail for the gross alienation, deducted in village Form No.V.

iv) Village Form No.IV : Register of Miscellaneous land Revenue :

(Siwai Amdani _ Siwai “Jamaband”).
In this register of miscellaneous Land Revenue, a note of all miscellaneous land
revenue is kept by the concerned Talathi date wise so as to ensure that no item of
miscellaneous Land Revenue of recurring nature is left unnoticed and unrecovered. From
these entries in V.F.Vo.IV, each item of miscellaneous land revenue in the village is
noted in the corresponding Taluka form No.IV. Each item in the Taluka Form No.IV
maintained by the Talathi for the entire village or the maintenance city surveyor for the
118
area out of the village within city survey limits only. For the areas of a village within the
city surveyor, there will be two accounts one with the Talathi, and the other with the
maintenance city Surveyor. As soon as an order is passed levying the miscellaneous land
revenue, an entry should be made in this register, on receipt of necessary order from
Tahsildar.

v) Village Form-V :Tharavband” or Kista Bandi Khatawahi (Jamabandi) .

(General abstract of Area and Revenue of the village)
This form sums up the total demand of Land Revenue, both fixed and fluctuating
and also shows the reasons for all changes in fixed revenue as compared with the
previous year. This form is most important for audit, because in the matter of fixed
revenue, only each change requires audit while in fluctuation revenue, each item
required audit. Actual recovery of land revenue and preparation of other land revenue
accounts are done on the basis of demands contained in Tharavband(V.F.XVI).

ii) Change in V.F.I, II and III are made in the forms day by day as the orders reach
Talathi. All such orders go back to Taluka and are not filed in the village. Fluctuating
revenue is posted in V.F.IV and in subsidiary papers similarly day by day. But V.F.V
obviously cannot be posted completely till the year is closed. The most important parts
of this form(V.F.V) are the notes on the causes of increase and decrease in the land
revenue.
iii) From Village form-V, corresponding Taluka Form is posted in Tahsil office.

vi) village Form No.VI : Extracts of statistics regarding record of right (Hakka
Nondani Goshvara).
This form is also called as a register of Mutations. The form provides not only
important statistics but enables the superior revenue officers to exercise effective control
over the work in the village. From this register, corresponding Taluka Form-VI is posted
in Tahsil Offices. This V.F.VI is called a diary of records of Rights or a diary of
Mutations.

119
Vii) villages Form No.VII-XII : records of Rights and Register of crops :
This form is combined form showing (i) an index of all rights by survey
numbers and their sub-divisions and (ii) details of crops, fellows, survey and boundary
marks.
The part (i) in effect is an index of V.F.No.VI. as for detailed instructions
regarding maintenance and use of the forms(VII-XII) instructions given on pages 158 to
164 of the Maharashtra Land Revenue Manual Volume IV may be seen.

VIII Form No.VII_A & VII-B :- Regarding (i) a Register of Tenancy and (ii) A register
of persons other than the persons deemed to be in possession according to the records of
Rights maintained by a Talathi as and when he notices, during the period of inspection &
crops, the names of persons, cultivating or possessing the lands, other than those, whose
names are recorded in the Register of Rights.

Form VIII-A and VIII-B :-

Village form No.VIII-A relates to a Register of holding while form No.VIII-B
relates to a Register of annual ledger of dues and recoveries and trial balance sheet of
Tharavband items. Form-VIII-B is actually an account showing the demand by Khatas,
recoveries and arrears authorized or unauthorized of every village. The main use of the
form is to prove the correctness of other account and to work out the balances due by
details of year from Khatedar.

Village Form-IX :- This register is called pay and receipt Book. A receipt of Land
Revenue paid is given by the Talathis in this form.

Village Form IX-A :- This is a register meant for recording stock of receipt books of
villages form IX and other receipt book, maintained by Talathi. At the time of annual
checking of accounts, at the taluka by the Tahsildar and the subsequent Jamabandi, by the
Sub-divisional officer and the collector, particular attention should be paid to the
checking of this register and seeing that the entries therein tally with those in the Taluka
Register showing the account of receipt books, the account of receipts books issued to
the talathis. Used receipt books are to sent to Taluka Offices, as soon as the receipts are
exhausted.
120
Village Form-X :- Form X is challan for land revenue to be credited consolidatedly to
Treasury. Other register which are kept at village level are as follow :
i) Village Form-XI : Crop statistics.
ii) Village Form-XIII : Register showing population, cattle and
agricultural implements.
iii) Village Form-XIV : Register or sources of water supply.
iv) Village Form-XV : Inward and outward register.
v) Village Form-XVI : A list of books, standing order etc.

Miscellaneous files which are maintained at village level are as shown below :
i) Annual Report.
ii) Village Map.
iii) Kami Jasti Partrak.
iv) Akarphod or Hissa Form-XII
v) Intimation of transfers by registering officers.
vi) Orders and intimations leading to an entry in the register of mutation.
vii) Miscellaneous papers.

(B) Forms and registers relating to Revenue Accounts maintained at Taluka level.

Taluka Account are maintained village wise. The function of the Taluka
Accounts are two-fold :

i) Keeping control over and consolidating village accounts account and.

ii) collecting and compiling statistics for sound revenue administration including general
administrations.
2) The Taluka Accounts fall mainly in the following four categories.
i) Control of accounts of or a end revenue of the village including the statistics
indicating the condition of Record or Rights.
ii) Statistics complied from the village Revenue Accounts.
iii) Statistics compiled at Taluka Level and
iv) Miscellaneous accounts relating to transactions at Taluka level.
121
(vide chapter “Taluka Revenue Accounts” of M.L.R. Manual No.V).

Taluka Form No.I : Register of lands :

It is a starting points of the taluka revenue accounts. With the introduction of a
settlement of land revenue under Section 102 of the Maharashtra Land Revenue Code,
the Talathi prepares the V.F.I and its abstract. This first abstract of the V.F.I after its test
for accuracy becomes the basis of taluka Form-I. This taluika form is maintained for the
terms of settlement and prepared afresh after every revision-settlement in the same way
as village Form-I. The register is required to be maintained in the form and column, as
given on P.15 and 16 of the Maharashtra Land Revenue Manual V. This register
accounts for all the fixed land revenue on agricultural lands..

Taluka Form-II : Register of Non-agricultural Revenue :

The T.F.II accounts for all the fixed land revenue on non agricultural lands in the Taluka
and keeps a check on village form II maintained by the Talathi. The register is
maintained in the specific form as prescribed on page 18 of the M.L.R. Manual Volume-
V. The register is to be maintained village wise leaving adequate number of pages for
each villages, according to its size and expected transactions. The register requires
special attention of the inspections offices. The scrutiny of the entries should therefore
be done by comparing the entries in the corresponding village Form-II and all
discrepancies should be set right and action to revise assessment or to renew or to
terminate leases, wherever necessary be promptly initiated and finally disposed of by the
Tahsildar.
3. Taluka Form No.III : Register of Alienated Lands :
The register is maintained in the form, given on page 20 of the M.L.R. Manual Volume-
V. The Taluka Form III accounts for all fixed land revenue on alienated (transferred)
lands, both agricultural and non agricultural. It is basically compiled from the printed
alienation register maintained upto date by incorporating changes and new alienation that
came to the notice of the Tahsildar, through superior officers and Government and agreed
annually with the abstracts of village form-III of all the villages in the Taluka. The main
aim of Taluka Form-III is to account in detailed for the gross alienation deducted in
Taluka Form-V (i.e. Tharavband).

122
Taluka Form-IV : Register of Miscellaneous and Revenue :-
With a view to ensuring that a proper amount of miscellaneous land revenue is
realized, a register in the form prescribed on page 21 of M.L.R. Manual Vol,V is
maintained by Tahsildar. In this register Tahsildar should take a note of all
miscellaneous land revenue, not merely to have a check over the villages form-IV, but
also to watch that no items of miscellaneous revenue or recurring nature are left
unnoticed and unrecovered. As soon as an order is passed levying the miscellaneous land
revenue, an entry should be made in this form in the village concerned and the order with
the serial number at which it is entered in taluka form-IV should be sent to the Talathi
and maintenance city Surveyor where necessary for making necessary entries in this
village form-IV and maintenance city Surveyor’s accounts as the case may be.

Taluka Form No.V : Taluka Jamabandi :

The Taluka Form-V is a general abstract of the area and revenue(Jamabandi) of
the Taluka, exhibiting clearly the digits of area and revenue of the Talathies with net
increase or decrease together with the grand total of consolidated land revenue and areas
yielding to revenue and the reasons for all the changes in the fixed revenue and for all
large and striking increase and decreases in the fluctuating revenue. The Taluka Form-V
is filled in from the village form V which is sent by the Talathis to the Tahsildar every
year. This form is kept as per instructions given on page 24 of the M.L.R. Manual
volume-V.

Taluka Form-VI : Abstract of statistics regarding Record of rights(Hakka Nondani

Goshwara).
This Taluka Form is kept in the specific form as detailed on page 25 of the
M.L.R. Manual No.V. This form provides not only important statistic but enables the
superior revenue officers to exercise effective control over the work in the villages and
the Talathis. It is based on village Form-VI and the subsidiary register thereunder and
V.F.VII.

Taluka Form No.VII – Taleband :

The Register of Taleband is kept in form-VII, as detailed on page 26 of the
M.L.R. Manual Volume-V in which village-wise demand, arrears, recovery remittances
123
and balance of the entire land revenue (including cess) are exhibited). The Taluka Form-
VII so far as the arrears at the end of the last years and the fixed demand of the current
year are concerned, are posted upto date before the recovery work starts, so that as soon
as challans start coming in from talathis, a note of recovery (village wise) is taken in the
register, so as to keep a close watch over the progress of recovery.
...............................

124
 APPENDIX – 3
A list showing names of districts and Tahsilds in the State
(Referred to in paragraphs 3.1)

Sr.No. Name of District Name of Tahsil

1 Akola 1) Akola
2) Akola (Nazul)
3) Akot
4) Murtizapur
5)Barshi Takli
6) Telhara
7) Balapur
8) Patur
2 Washim 1) Washim
2) Risod
3)Mangrulpir
4) Malegaon
5) Manora
6) Karanja
3 Amravati 1) Amravati
2) Nazul Amravati
3) Achalpur
4) Morshi
5) Chandur Railway
6) Daryapur
7) Melghat (Dharni)
8) Bhatkuli
9) Nandgaon Khandkeshwar
10) Anjangaon Surji
11) Warud
12) Teosa
13) Chandur Bazar
14) Dhamangaon Rly.
15) Chikhaldara
125
4 Bhandara 1) Bhandara
2) Sakoli
3) Mohadi
4) Tumsar
5) Pauni
6) Lakhandur
7) Lakhani
5 Gondia 1) Gondia
2) Goregaon
3) Tiroda
4) Arjuni Morgaon
5) Deori
6) Salekasa
7) Amgaon
8) Sadak Arjuni
6 Buldhana 1) Buldhana
2) Mehkar
3) Khamgaon
4) Malkapur
5) Jalgaon Jamod
6) Shegaon
7) Sangrmpur
8) Nandura
9) Motala
10) Lonar
11) Deolgaon Raja
12) Chikhli
13) Sidhklhed Raja
7 Chandrapur 1) Chandrapur
2) Warora
3) Bramhapuri
4) Rajura
5) Mul
6) Gondpipri
126
 7) Bhadrawati
8) Chimur
9) Nagbhir
10) Sindewahi
11) Ballarpur
12) Saoli
13)Pombhurna
14) Korapana
15) Jiovati
8 Gadchiroli 1) Gadchiroli
2) Armori
3) Chamorshi
4) Dhanora
5) Kurkheda
6) Aheri
7) Etapalli
8) Sironcha
9) Mulchera
10) Bhamragad
11) Desaigani Wadsa
12) Korchi
9 Nagpur 1) Nagpur
2) Katol
3) Saoner
4) Ramtek
5) Umred
6) Nazul Nagpur
7) Nagpur (Rural)
8) Kamptee
9) Hingna
10) Narkhed
11) Kalmeshwar
12) Parsioni
13) Mouda
127
 14) Bhiwapur
15) Kuhi
10 Wardha 1) Wardha
2) Arvi
3) Hinganghat
4) Seloo
5) Deoli
6) Samudrapur
7) Karanja
8) Ashti
11 Yavatmal 1) Yavatmal
2) Kelapur( at Pandharkawada)
3) Wani
4) Pusad
5) Darwah
6) Babhulgaon
7) Kalamb
8) Ghatanji
9) Ralegaon
10) Maregaon
11) Digras
12) Ner
13) Umarkhed
14) Mahagaon
15) Arni
16) Zari Jamini
12 Aurangabad 1) Aurangabad
2) Khultabad
3) Kannad
4) Soegaon
5) Sillod
6) Paithan
7) Gangapur
8) Vaijapur
128
 9) Phulambri
13 Beed 1) Beed
2) Georai
3) Manjalgaon
4) Ambejogai
5) Kaij
6) Patoda
7) Ashti
8) Wadawani
9) Shirur (Kasar)
10) Parli
11) Dharur
14 Jalna 1) Jalna
2) Ambad
3) Bhokardhan
4) Jafrabad
5) Partur
6) Badnapur
7) Ghansawangi
8) Mantha
15 Nanded 1) Nanded
2)Hadgaon
3) Kinwat
4) Bhokar
5) Billoli
6) Degloor
7) Mukhed
8) Kandhar
9) Loha
10) Mudkhed
11) Ardhapur
12) Umri
13) Naigaon (Khairgaon)
14) Dharmabad
129
 15) Mahur
16) Himayatnagar
16 Latur 1) Latur
2) Ahmedpur
3) Udgir
4) Nilanga
5) Ausa
6) Chakur
7) Renapur
8) Dewani
9) Jalkort
10) Shirur(Anantpal)
17 Osmanabad 1) Osmanabad
2) Omerga
3) Tuljapur
4) Paranda
5) Bhoom
6) Kallam
7) Lohara
8) Washi
18 Parbhani 1) Parbhani
2) Jintoor
3) Gangakhed
4) Pathri
5) Sonpeth
6) Manwat
7) Palam
8) Purna
9) Sailu
19 Hingoli 1) Hingoli
2) Kalamnuri
3) Basmat
4) Sengaon
5) Aundha(Nagnath)
130
20 Ahmednagar 1) Ahmednagar
2) Rahuri
3) Shrirampur
4) Newasa
5) Shevgaon
6) Pathardi
7) Jamkhed
8) Karjat
9) Shrigonda
10) Parner
11) Akole
12) Sangamner
13) Kopargaon
14) Rahata
21 Dhule 1) Dhule
2) Sakri
3) Shsirpur
4) Sindhkheda
22 Nandurbar 1) Nandurbar
2) Nawapur
3) Taloda
4) Shahada
5) Akrani Mahal at Dhadgaon
6) Akkalkuwa
23 Jalgaon 1) Jalgaom
2) Yaval
3) Chopda
4) Raver
5) Edlabad
6) Bhusawal
7) Jamner
8) Pachora
9) Chalisgaon
10) Bhadgaon
131
 11) Parola
12) Erandol
13) Amalner
14) Dharangaon
15) Bodwad
24 Kolhapur 1) Karvir
2) Panhala
3) Hathkanangle
4) Shirol
5) Kagal
6) Gadhinglaj
7) Chandgad
8) Ajra
9) Bhudargad(at Gargoti)
10) Radhanagri
11) Bawada
12) Shahuwadi
25 Raigad 1) Raigad
2) Uran
3) Panvel
4) Karjat
5) Khalapur
6) Pen
7) Roha
8) Sudhagad
9) Mangaon
10) Mahad
11) Poladpur
12) Mhasala
13) Shrivardhan
14) Murud Jinjira
15) Tala
26 Nasik 1) Nasik
2) Peth
132
 3) Dindori
4) Surgana
5) Kalwan
6) Baglan (at Satana)
7) Malegaon
8) Chandor(Chandwad)
9) Nandgaon
10) Yeola
11) Niphad
12) Sinnar
13) Igatpuri
14) Tryambekeshwar
15) Deola
27 Pune 1) Pune city
2) Haveli (At Pune)
3) Khed
4) Ambegaon
5) Junnar
6) Sirur
7) Daund
8) Indapur
9) Baramati
10) Purandar (at Saswad)
11) Bhor
12) Velha
13) Mulshi (at Paud)
14) Mawal (at wadgaon)
28 Ratnagiri 1) Ratnagiri
2) Guhaghar
3) Dapoli
4) Mandangad
5) Khed
6) Chiplun
7) Sangemeshwar (at Deorukh)
133
 8) Lanja
9) Rajapur
29 Sindhudurg 1) Kankawali
2) Kudal
3) Sawantwadi
4) Vengurla
5) Malvan
6) Deogad
7) Dodamarg
8) Vaibhavwadi
30 Satara 1) Satara
2) Wai
3) Khandala
4) Koregaon
5) Phaltan
6) Man (at Dahiwadi)
7) Khatav (at Waduz)
8) Karad
9) Patan
10) Jaoli at Medha
11) Mahabaleshwar
31 Sangli 1) Miraj
2) Tasgaon
3) Khanapur( at Vita)
4) Atpadi
5) Jath
6) Kawathe Mahankal
7) Walva (at Islampur
8) Shirala
9) Palus
32 Thane 1) Thane
2) Wasai
3) Palghar
4) Dahanu
134
 5) Talasari
6) Jawar
7) Mokhada
8) Bhiwandi
9) Wada
10) Shahapur
11) Murbad
12) Kalyan
13) Ulhasnagar
14) Ambarnath
15) Vikramgarh
33 Solapur 1) North Solapur
2) South Solapur
3) Barshi
4) Akkalkot
5) Mangalvedha
6) Mohol
7) Pandharpur
8) Sangola
9) Malsiras
10) Karmala
11) Madha
34 Bombay B.S.D 1) Kurla (at Mulund)
2) Boriwali
3) Andheri
35 Bombay City --

Total : (1) Districts - 35 (2) Tahsils - 360 (including 3 Nazul Tahsils)

1) Akola
2) Amravati and
3) Nagpur
And 3 Tahsils in Bombay

135
 APPENDIX – 4
(Referred to in paragraph 14.4(VI) of the Manual)

OFFICE OF THE ACCOUNTANT GENERAL(AUDIT)-ii, MAHARASHTRA,

NAGPUR.

QUESTIONNAIRE SRA PARTY

To,

The Tahsildar,

Subject :- Local Audit of Revenue Receipts.

Sir,
The Local audit of Land Revenue Receipts of the Tahsil ................................ for the
revenue year ............................. is being taken up with effect from ........................ You
are requested to keep replies to the following points ready and furnish the same to the
audit party on the 1st day of audit. Relevant records may also be kept ready for
Inspection.
1. Name of Officer who held charge of Tahsildar during the period covered by audit.
2. (a) Total No. of villages, Sajas and Circles in the Tahsil
(b) Total are of Tahsil.
(c) Total area occupied for agricultural purpose.
(d) Total area occupied for non agricultural prupose.
(e) Total area of land within the Tahsil which is yielding no revenue.
3. (a) What is the land revenue collection during the last 3 years and average thereof.
(b) Total amount of land revenue Tharavbandh and non Tharavband collected during
the years of audit.
(c) Latest position of Demand/collection/balance of land revenue yearwise as well as
breakup between suspended and un-suspended may be given.
4. Name of the highest and lowest revenue yielding 3 villages/units.
5. Indicate the No. of K.J.P. which are pending with SDO/DILR till the period of audit.

136
6. Whether any inspection has been carried out by departmental officers such as
Collector, S.D.O./Prant etc. for the revenue year. If so, a copy of I.R. may be
submitted for perusal.
7. Area there any lands used for Mines, quarries ? Give details of land revenue
recovered.
(a) Whether any Inspection has been carried out by the officers of Geology and
Mining Department ? If so a copy of the I.R. may be submitted for perusal.
8. The names of villages in which forest area have been included and a separate V.F.
I.A. is maintained. Please state if any portion of forest area has been deforested and
brought under cultivation. If so, the area/ involved may please be indicated with the
year in which it was put to agricultural use. Relevant records regarding occupancy
price ete.. May be shown.
9. List out the names of villages where there were Inami lands before abolition of
Inams. Give details thereof i.e. area, land revenue occupancy price recoverable.
10. Are there any lands granted free of assessment of L.R. in the Taluka. Give upto date
list for information.
11. The No. of cases village-wise in which agricultural use was changed without prior
permission and such un-authorized use was regulated under rule 9 of
M.L.R.(Conversion of use of land and N.A. assessment Rule 1969).
12. Whether there are any remission/suspension during the Revenue year.
13. Whether there are any encroachments of Government land, if so, details thereof such
as area of land revenue involved may please be furnished. Action taken for
eviction/removal of encroachment may be stated.
14. Are there any Government land vested in Zilla Parishad, Village Panchayat Samiti,
M.I.D..C. state farming corporation etc. ?
15. Does the Taluka have any Khar lands or any other land which the Government has
reclaimed under any scheme, if so, give details.
16. Are there any refunds of revenue made to any body during the Revenue year. Give
details.
17. Give particulars of cases if any in which Revenue dues were written off being
irrecoverable.
18. Are there any cases of Misappropriation of Government money by village officers,
give details.

137
19. The numbers of case in which Government lands have been leased during last 3 years
for Agriculture r non agriculture purpose. Give village wise details.
20. Whether any Government land has been sold/leased during the last 3 years. If so,
give details including sale proceeds realized.
21. Whether any land has been distributed to landless adivasis, Freedom fighter give
details.
22. Whether any surplus land was available under the land ceiling Act. Give details.
23. Total number of N.A. orders sanctioned by Tahsildar in case of Class-II villages and
by Collector in case of Urban and Class-I village.
24. Please state when the Revenue settlement was last conducted in the Taluka. If the
prescribed term of settlement has since expired whether action to conduct the revision
settlement has been taken.

Section Officer
SRA Party No...........

138
 APPENDIX – 5
Rates leviable on various items under Land Revenue Receipts.

Rates
leviable
Rs. Paise
Item Reference to Particulars rates of i) For dues upto 00=50
No.(1) para 6-7 of recovery of the cost of Rs.25/-
Manual issue of demand notice
ii) For dues 01=00
exceeding Rs.25/-
but not exceeding
Rs.100/-
iii) For dues 1=50
exceeding Rs.100/-
( Authority :- Section 178(2) of M.L.R. Code, 1966)
Item Para 6-12 of Rates of increase of Land Whether total L.R. Rate of
No.(2) Manual revenue effective during payable : increase
1-8-74 to 31-8-75 based i) does not exceed ---Nil--
on total revenue payable Rs.75/-
ii) Exceeds Rs.75/- 25% of such
but does not amount as in
exceed Rs.100/- excess of
Rs.75/-
iii) Exceeds Rs.6.25 plus
Rs.100/- but does 50% of such
not exceed amount as in
Rs.200/- excess of
Rs.100/-
iv) Exceeds Rs.56.25
Rs.200/- but does plus 100%
not exceeds of such
139
 Rs.500/- amount as in
excess of
Rs.200/-
(Authority :-Section 3 of Maharashtra Increase of Land Revenue and Special Assessment
Act, 1974).
Item Reference to Particulars rates of Where special Rates
No.(3) para 6.13(i) increase of special assessment leviable
in Manual assessment (Education payable
cess) on commercial crops a) does not exceed --Nil--
Rs.200/-
b) exceeds 25% of such
Rs.200/- but does amount as in
not exceed excess of
Rs.500/- Rs.200/-
c) Exceeds Rs.500/ Rs.75/- plus
but does not 50% of such
exceed Rs.1000/- amount as in
excess of
Rs.500/-
d) Exceeds Rs.325/-
Rs.1000/- but does plus 100%
not exceed 2000/- of such
amount as in
excess of
Rs.2000/-
e) exceeds Rs.1325/-
Rs.2000/- plus 150%
of such
amount as in
excess of
Rs.2000/-
(Section 4 of the Maharashtra Increase of Land Revenue and Special Assessment Act,
1974.

140
Item Para 6.13 (ii) Rates of Special Assessment(Education cess)
No.(4) Leviable on Commercial Crops)
Particulars of crop From From 1-8-1974 From 1-8-1975
(1-8-1966) (B) Rs. (C) Rs.
(A) Rs.
i) Sugar cane grown on 50/- per acre 187.50 per hectare 190.00 per
land perennially hectare
irrigated
ii) Sugarcane in any other 30/- per acre 112.50 per hectare 110.00 per
land hectare
iii) Irrigated cotton 10 per acre 37.50 per hectare 40/- per hectare
(except H-4 seeds)
iv) H-4 cotton seed --- 112.50 per hectare 110 per hectare
v) Hybrid Jawar seed --- 37.50 per hectare 40 per hectare
vi) Hybrid Bajra seed --- 37.50 per hectare 40 per hectare
vii) Irrigated ground nut 10/- per acre 37.50 per hectare 40 per hectare
viii) Betal leaves 50/- per acre 187.50 per hectare 190 per hectare
ix) Citrus fruit 20 per acre 75 per hectare 80 per hectare
x) Bananas 30 per acre 112.50 per hectare 110 per hectare
xi) Graps 100 per acre 375.00 per hectare 380 per hectare
xii) Chikus 20 per acre 75/- per hectare 80 per hectare
xiii) Tamerind -- 375/- per hectare 380 per hectare
xiv) Arecanut -- 300/- per hectare 300 per hectare
xv) Tobacco -- 125/- per hectare 130/- per
hectare

(Authority :- a) Maharashtra Education Cess Act, 1962

c) Maharashtra Education Cess Act, 1962( Schedule B)
d) Maharashtra Education and Employment
Guarantee(Cess)(Amendment) Act, 1976.

141
Item Reference to paragraph Particulars Rates leviable
No. in Manual Rates of levy of increase of
land revenue effective from
1-8-1975 on holding basis
(5) Para 6.14 i) Where holding consist of 50% of the land
land equal to 8 hectares or revenue payable in
more but less than 12 respect of such
hectares. holding in the State.
ii) Where holding consists 100% of the land
of land equal to 12 hectares revenue payable in
or more respect of such
holding in the state.

(Authority :-Section 4 of the Schedule ‘C’ of the Government Gazette dated 12-6-1975.
P.S. Holding includes all lands held by a holder both for agricultural (as well as non
agricultural purpose. Vide clarification made by government in circular Revenue and
Forest Department No.DAP-4780/C-19/268-L-2 dated 6thy August 1982).
Item Reference to paragraph Particulars Anna valuation Maximum amount of
No. of crop. land revenue
recoverable
(6) Para 7.4 a) 12 annas or more The amount of
current land revenue
in full plus such
amount of the
suspended land
revenue as will not
exceed the amount of
the current land
revenue.
b) 9 annas and more but less The amount of
than 12 annas current land Revenue
in full plus such
amount of the
suspended land
142
 revenue as will not
exceed one half of the
amount of the current
land revenue.
c) 6 annas or more but less The amount of
than 9 annas current land revenue
only.
d) More than 4 annas but One half of the
less than 6 annas current land revenue
only
e) upto 4 annas --Nill--

(Authority :- Mharashtra Land Revenue (Reduction, Suspension and (Remission)

( Second Amendment) Rule, 1974).
Item No. Reference Particulars rates of recovery Rate Unit
to of water charges use of non
paragraph agricultural purpose:
(7) Para-10.5 1) Industrial purpose a) Rs.8.00 for Per thousand
first two cubic feet of
years water
b) Rs.10.00 for --do--
three years
and onwards
2) Purpose of Municipalities Rs.5.50 --do--
3) Purpose of Railway Rs.12.50 --do--
4) Domestic use (i.e. for --Nil-- --Nil--
drinking water

(Authority:- G.R. Revenue and Forest Department No.WTR-1070/900-G-II dated

5-6-1972 as amended by G.R. Revenue and Forest Department
No.WTR/1076/1798-12 dated 10-6-1976).
GR Revenue & Forest Department No. MÉÉèJÉÉÊxÉ –10/2001/|ɵÉE-24vÉ/ 29-1 dt.15-01-2003
Item Reference to Particulars of Rates of Royalty Rates of Royalty
No. paragraph Minerals
143
(8) Para 11.3 1(a) Limestone used Rs.1.87 per Metric Rs. 50/- per brass
in Kilns for Tone or Rs.7.50
manufacture of per brass.
Lime used as
building material
(b) Lime Shell
2. All Building i) Rawstone Rs.50/- per brass
stones when Rs.1.50 per metric
intended for tone or Rs.7.50 per
building and brass
construction ii) Transported
purpose. stone Rs.0.75 per
M.Tone or Rs.3.75
per brass.
3(a)Boulders, Single Rs.1.87 per metric Rs.50/- per brass
gravel, Murun, Tone or Rs.7.50
Kankar all used for per brass.
construction
purpose either by
excavation or
collection.
(b) Chalcedony Rs.9 per metric Rs.250/- per brass
pebbles used for ball tone or Rs.36 per
mill purpose only brass.
c) Ordinary sand not Rs. 2.25 Per metric Rs.50/- per brass
used for the tone or Rs.9 Per Rs.100/- per brass
following prescribed brass in the area of
purpose. Mumbai
Metropolitan
Regional
Development
Authority
i) Purpose of
refectory and
144
manufacture of
ceramic
ii) Metallurgical
purpose in optical
purpose
iii) Optical purpose
iv) Purpose of coal
v) for manufacture
of silviorete
cement.
vi) for manufacture
of sodium silicate
vii) for manufacture
of pottery and glass.
4(a) Ordinary clay Rs.1.12 Per metric Rs.50/- per brass
used by village tone or Rs.4.50 Per
potter brass
(b) Ordinary clay Rs.2.50 Per metric Rs.50/- per brass
when used for tone or Rs. 10/-Per
manufacture of brass
tiles(Mangalore
pattern)
5. Red ‘Matti’ Rs. 1.87 Per metric Rs.50/- per brass
including ordinary tone or Rs.7.50 Per
earth brass
6. Slate and Shale’s Rs.4.50 Per metric Rs.50/- per brass
when used for tone or Rs.18/- Per
building material brass
7. Brick earth and Rs. 0.45 Per metric Rs.20/- per brass
silt from tanks and tone or Rs.1.80
rivers Per brass
8. Fuller’s earth or Rs.6 Per metric Rs.128/- per brass
Bentonite tone or Rs. 1.80
Per brass
145
 9. All types of Rs.6 Per metric Rs.239/- per brass
stones(except tone or Rs. 1.80
granite) used for Per brass
Decorative purpose
10. All other minor Rs. 1.50 Per metric Rs.50/- per brass
minerals tone or Rs.6.00 Per
(except granite) brass

(Authority :- Government of Maharashtra Revenue and Forest Department Notification

146
 APPENDIX – 6

List of Files maintained in SRA(HQ)

Revenue and Forest Department :
1) Collectors
2) District Inspector of Land Records.
3) Tahsildars.
4) Sub-Divisional Officer
5) General (Revenue)
6) Joint District Registrar
7) Sub-Registrar
8) General (Registration)

Finance Department :-
9) Agricultural Income Tax Officers
10) General (A.I.T.O.)
11) Sales Tax Officers
12) General (S.T.)
13) Treasury Officers
14) General. (Treasury)
Home Department :-

15) Regional Transport Officer

16) Assistant R.T.O.s
17) General

General :
18) Annual Forecast
19) Tour Programmes
20) Posting and Transfers
21) Manuals
22) Draft Paragraphs
23) Reviews
147
24) Objection Statements
25) Staff Proposals and Budget Estimates
26) Miscellaneous
27) Non-Tax Revenue Audits.
28) Purchase of Books and Periodical
29) List of Institutions
30) Organizing Lectures in SRA
31) Audit of Receipt under Court Fees and Suit Valuation
32) Internal Audit Reports.

ANNEXURE – 7
Some important Government Resolutions/Circulars issued by government of Maharashtra
on Non Agricultural Assessment.
1) Levy of NAA lands utilised for Water Supply Scheme and under ground pipelines
laid for Water Supply Schemes.
Revenue & Forest G,.R. No.2989/14750(28) ãÉ-5 dated 7th July 1995
Pipelines laid and lan ds utilised for above purpose by Municipal Corporation , Nagar
Parishad, Mahaerashtra Water Supply & Water Distribution Mandal, Maharashtra State
Industrial Development Corporation and other institution, Local Bodies, Mandal and
Mahamandal , NAA should be levied from the date of commencement of water supply
scheme and the areas be recovered under Section 114(d) the rate applied for other
purpose.
2) Lands utilised by Maharashtra State Road Transport Corporation.
R& F Gr.NAA-3986/84(15)L-2 dated 15th March 1989.
i) Lands used for Depo, Workshop, Tyre retarding plant for other industrial purpose –
NAA to be levied at industrial rate.
ii) Lands utilised for employees Welfare Centers, Library and Welfare Centre(Halls) and
Residential purpose , - NAA to be levied at residential rate.
iii) Area under roads should be exempted from levy subject to condition that the S.T.
corporation should furnish, lay out plan of Bus Stand to the Tahsildar in advance before
availing exemption.
iv) Since the holding of M.S.R.T.C. is obviously more than 12 hectors it is necessary to
examine the point of levy of I.L.R. also.
148
3) Land acquired by C.I.D.C.O.
(R& F G.R.No.4282/307465(57)/ãÉ.5 dated 19-06-1999.
i) Lands acquired by C.I.D.C.O. and given as lease/Kabjehakka to others, the C.I.D.C.O.
should recover the NAA from respective holders and remit the amount to the
Government.
ii) NAA should not be levied on land acquired by C.I.D.C.O. or granted by Government
to C.I.D.C.O. but the same not distributed so far.
4) M.S.E.B.
R&F Circular No.NAA-1083/15701/CR-632/L-2 dated 01-11-1983.
i) NAA to be levied on land acquired by Government under land acquisition Act 1894
and handed over to the acquiring bodies such as M.S.E.B. and other Public undertaking
or Public/Private Limited companies.
ii) The holding of M.S.E.B. in the State is obviously more than 12 hectors, it is necessary
to examine the point of levy of I.L.R. also.
5) Properties belonging to Nationalised Bank & L.I.C.
As per Circular R & F Department No.EDC-1088/270961/218-L-2 dated 29-05-1985.
Properties belonging to Nationalised Bank and L.I.C. are not exempted from levy
of Education & E.G.S cess.
6. Food Corporation of India
As per Gr. No.NAA-1088/185127/GR-44/ãÉ.2 dated 25-04-1988,
The land/Building under the possession of Food Corporation of India, are liable for levy
of NAA.
7. Bombay Regional Development Authority, Bombay
As per Government letter R& F Department No.NAA-30465/A/CR-55/L-2 dated 23-02-
1983. The above authority is not exempt from payment of NAA to Government
irrespective, whether it is a land granted by Government or land acquired by it.
8. Agricultural produce Market Committee.
G.R. of R& F No.VÉàÉÉÒxÉ.1089/|ɵÉE.89/VÉ.1 dated 27th March 1998.
According to condition 32 of the Maharashtra Land Revenue (Disposal of
Government Lands) Rule 1971, Government lands are granted to various institutions for
commercial purpose considering the prevalent market value. On the same analogy, lands
may be granted to A.P.M.Cs on the prevalent market value, which may be recovered on
yearly installments based on their annual income as shown below.
1. Annual income of APMC, below 1 crore in 15 years
149
2. Annual income of APMC, 1 crore to 5 crore in 8 years
3. Annual income of APMC, above 5 crore in 6 years.
While recovering the market value, the rate of interest should be considered as
declared by Government.
No exemption from NAA on land possessed/holding by A.P.M.C.
9. Maharashtra State Vakhar Mahamandal.
R&F Department G.Circular NAA-1093/171585/(37)/ãÉ.5 dated 08-06-1995.
Government directed to recover NAA at commercial rate considering that the lands were
used for purpose of commerce.(U/s 114 c)

150
POINTS TO BE EXAMINED ON SOME IMPORTANT TOPICS OF LAND
REVENUE

I. “ARREARS OF LAND REVENUE AND DUES RECOVERABLE

AS ARREARS OF LAND REVENUE” – GUIDELINES

A: ISSUES FOR EXAMINATION IN AUDIT:

Audit scrutiny of land revenue would extend interalia, to verifying whether

(i) adequate systems and procedures exist for the computation and realization of
land revenue, fines, fees, cess and price of land granted etc?

(ii) adequate control and monitoring mechanisms have been devised to prevent
loss of leakage of land revenue, cess, fines and fees, etc?

(iii) the relevant records have been maintained properly to facilitate the raising of
demands and their recoveries?

(iv) the revenue due to the Government either in the normal course or in case of
default has been correctly and promptly realized?

(v) the machinery for the collection and realization of current dues as well as
arrears is adequate?

(vi) the rules provide for payment of fine for non-payment or delay in payment of
land revenue, if so, whether these provisions were applied in the relevant
cases?

(vii) a notice of demand was issued to the defaulter of land revenue, cess etc. on or
after the day following that on which the arrear became payable?

(viii) after serving a written notice of demand on the defaulter one or more of the
processes mentioned in Para-E below were applied for recovery of land
revenue, etc?

(ix) demand, collection, and arrears of land revenue have been correctly worked
out in the Tahsil offices?

(x) reconciliation between village and Tahsil accounts has been effected?

(xi) the opening balance of the arrears for the current year tallies with the closing
balance of the previous year reported in the returns earlier?

(xii) the statement of arrears furnished to the Collector by the Tahsildar, includes
non-agricultural assessment and miscellaneous dues like fines, notice fees,
etc.?

(xiii) a Register of Minor and Major Coercive Processes has been properly
maintained?
151
(xiv) the District Forum, which gives particulars of arrears of land revenue and
arrears of other fines, cess and other dues recoverable as arrears of land
revenue recoverable by the Revenue Department, has been maintained?

(xv) the correctness of the returns submitted by the Tahsildar has been checked?

(xvi) the Revenue Recovery Certificate Register has been maintained?

(xvii) the note of Revenue Recovery Certificate has been taken in the concerned
columns of the register?

(xviii) the Revenue Recovery Certificate, if in complicate, was returned immediately

to the issuing office for necessary additions?

(xix) a demand notice was issued to the defaulter and payment of the Government
dues was made within the time specified therein?

(xx) the amount was remitted into Government Treasury and the Revenue
Recovery Certificate was returned to the issuing office and entries to this
effect made in the Register maintained for the purpose?

(xxi) if the defaulter failed to make the payment within the specified period, a
warrant of attachment was issued?

(xxii) the amount received in auction was credited to the concerned head of account
and the Revenue Recovery Certificate was returned to the issuing authority
with details of recovery?

(xxiii) entries made in the Register were reviewed by the Tahsildar?

(xxiv) the Sub-Divisional Officers and the Collectors have checked the Register of
Revenue Recovery Certificates at the time of inspection of the Tahsil Offices
in order to ensure that they are maintained properly?

(xxv) Contrary to rules, benefits of orders of suspension of land revenue was

extended to the defaulters of land revenue?

(xxvi) The account figures are being reconciled with the treasury figures?

(xxvii) Action taken for recovery is adequate and coercive action is taken in chronic
cases of non-payment of revenue?

(xxviii)Effective and deterrent action was taken against defaulters of land revenue?

(xxix) The remissions of land revenue and waiver of land revenue, penalties, fines
are in order?

152
B. COERCIVE PROCESSES FOR RECOVERY OF ARREARS OF LAND
REVENUE

Arrears of land revenue may be recovered by any one or more of the following
processes:

(i) By serving a write-off demand or a citation to appear, on any defaulter,

(ii) By arrest and detention of the person.

(iii) By attachment and sale of his movable property including produce.

(iv) By attachment of the holding in respect of which the arrear is due.

(v) By lease or sale of the holding in respect of which the arrear is due.

(vi) By attachment and sale of other immovable property of the defaulter, and

(vii) By appointing a receiver of any property, moveable or immovable of the

defaulter.

The cost of any of the processes mentioned above shall be added to and be
recoverable in the same manner as the arrears of land revenue.

C FURTHER READINGS:

- Report of the Comptroller and Auditor General of India for the year 1978-79
(Revenue Receipts), Government of Maharashtra (Paragraph 4.3)

- Report of the Comptroller and Auditor General of India for the year 1981-82
(Revenue Receipts), Government of Himachal Pradesh (Paragraph 4.1)

- Report of the Comptroller and Auditor General of India for the year 1988-89
(Revenue Receipts), Government of Rajasthan (Paragraph 4.3)

153
II. THE WORKING OF AGRICULTURAL LAND CEILING ACT

RECORDS TO BE SEEN IN AUDIT:

A) The following records may be seen and comments made thereon, if any;

1. statements of land holdings by tenure holders holding land in excess of the

ceiling area,

2. statement of distribution of surplus land,

3. general notices issued for acquiring surplus land,

4. statements showing particulars of buildings, masonry wells, tube-wells, pucca

irrigational channels and trees existing on the surplus land acquired,

5. statement in respect of arrears of land revenue or other dues recoverable under

the Ceiling Act or Rules made thereunder, by adjustment from compensation.

6. compensation files,

7. Demand and Collection Registers in respect of lands leased out on instalment

basis,

8. The annuity rolls signed by, the Collectors, etc. and

9. Register of Bonds issued/paid as compensation.

B) ISSUES TO BE EXAMINED IN AUDIT:

The extent of surplus land taken over in the village under the Land Ceiling Acts is
to be verified.

154
 The mistakes or omissions commonly occurring are summed up as under:

(i) mentioned the lease amount due, if any and the amount of the list installment
of land value due?

(ii) Whether changes have been carried out in the village and taluk accounts in
respect of the surplus lands assigned?

(iii) Whether patta numbers have been assigned to the assignees in the village and
whether pattas have been issued to each one of them?

(iv) Whether second and subsequent installments of land value have been
collected from the assignees?

(v) What is the demand, collection and balance of the first installment of land
value, second and subsequent installments of land value (with interest, if any)
in respect of the surplus lands assigned?

(vi) Is the demand being regularly issued to the assignees in respect of the amount
due?

(vii) Have all the lands been assigned to the persons entitled to them as per the Act
/ Rules and have been brought under cultivation and if not, why?

(viii) Are the lands under the enjoyment of original assignees?

(ix) Are there any lands taken over as surplus, but not yet assigned? If so, who are
enjoying the title to the lands and what is the capacity in which they are doing
so?

(x) Whether all those tenure holders who hold lands in excess of the ceiling have
filed the statement of lands?

155
 (xi) Whether the occupancy price is fixed as per the provisions of the Act and
recovery thereof made?

(xii) Whether any penalty has been imposed for not declaring the holdings
correctly?

C: FURTHER READINGS:

- Report of the Comptroller and Auditor General of India for the year 1979-80
(Revenue Receipts), Government of Assam (Paragraph 4.1 to 4.5)

- Report of the Comptroller and Auditor General of India for the year 1978-79
(Revenue Receipts), Government of Karnataka (Paragraph 5.02)

- Report of the Comptroller and Auditor General of India for the year 1980-81
(Revenue Receipts), Government of West Bengal (Paragraph 5.1 to 5.2)

- Report of the Comptroller and Auditor General of India for the year 1981-82
(Revenue Receipts), Government of Tamil Nadu (Paragraph 3.2)

- Report of the Comptroller and Auditor General of India for the year 1985-86
(Revenue Receipts), Government of Tamil Nadu (Paragraph 3.2)

- Report of the Comptroller and Auditor General of India for the year 1987-88
(Revenue Receipts), Government of Tamil Nadu (Paragraph 3.2)

156
III. MANAGEMENT OF KHASMAHAL PROPERTY

A. ISSUES OF EXAMINATION IN AUDIT:

With a view to highlighting omissions / irregularities connected with the

management of “Khasmahal” property, the following guidelines for audit are to be kept
in view:-

(i) The extent of the “Khasmahal” properties in the State?

(ii) The extent of the revenue realized from the “Khasmahal” properties in the
State?

(iii) What is the loss of revenue due to non-renewal of leases after expiry of the
term of the lease due to non-realisation of Salami, ground rent and interest,
etc.

(iv) Where Khasmahal leases have been converted into long term leases, it is to be
seen:

a) Whether premium at full market value prevailing at the time of renewal

has been charged and realized?

b) Ground rent and other appropriate rates have been revised and realized.

(v) Where old “Khasmahal” leases have been renewed, it may be seen:

a) Whether Salami, ground rent or interest on arrear rent etc. have been paid
by the defaulters?

b) Have fees, such as application fees, been correctly levied and realized?

(vi) Where the transfer of lease land takes place, it may be seen:

157
 a) Whether the transfer has been effected with the permission of the
competent authority and such permission has been granted on realization
of the prescribed fees, etc.

b) In case of unauthorised transfer the penalty fee at a higher rate is also

levied.

(vii) Where the resumption of lease hold land is taken, it may be seen:

a) Whether the land was resumed for public purposes?

b) Whether the compensation was paid according to the prescribed norms?

(viii) There is also a provision in all lease agreements for termination of the lease
and resumption of the land where terms and conditions of the lease
agreements are violated. In such cases compensation is also payable. It may
be seen whether all conditions for payment of compensation were satisfied?

(ix) All ‘Khasmahal’ lease agreements are required to be registered. Where the
lease agreements have not been registered the loss of stamp duty and
registration fees has to be worked out.

(x) Whether there is any case of short assessment of ground rent?

(xi) Whether there are cases where, occupation of ‘Khasmahal’ land took place
without payment of lease money?

(xii) Whether there are cases of non-utilisation of leasable lands surrendered by the
lease holders?

(xiii) The cases of encroachment of ‘Khasmahal’ land may be examined and

highlighted.

158
 (xiv) The cases of conversion of residential leases for commercial purposes may
also be examined and commented upon.

(xv) Any other aspect relating to mis-use of ‘Khasmahal’ property.

B. FURTHER READINGS:

- Report of the Comptroller and Auditor General of India for the year 1977-78
(Revenue Receipts), Government of Bihar (Paragraph 5.1)

- Report of the Comptroller and Auditor General of India for the year 1983-84
(Revenue Receipts), Government of West Bengal (Paragraph 5.2)

- Report of the Comptroller and Auditor General of India for the year 1986-87
(Revenue Receipts), Government of Orissa (Paragraph 5.7)

159
IV. ALLOTMENT OF GOVERNEMNT LAND TO INDUSTRIES

A. ISSUES FOR EXAMINATION IN AUDIT

With a view to highlighting omissions / irregularities, the following guidelines are

proposed:

(i) The grant of land is subject to certain terms and conditions fixed by the
Government. It may be seen:-

(a) Whether these conditions alongwith the provisions of the Rules have been
fulfilled by the grantee?

(b) In case these conditions and provisions of Rules have not been fulfilled by
the grantee, whether penalty provisions were evoked?

(ii) Where land is granted free of occupancy price or free of revenue, it may be
seen:

(a) Whether the land is situated out-side the municipal limit?

(b) Purpose of which the land was granted and whether it was diverted for any
other profitable purposes?

(c) What were the reasons for non-levy of occupancy price and land revenue?

(iii) If the land is situated within the municipal limit and has been granted to the
public/private industries for the purpose of playground, hospitals, hostels, etc.
where no profit is expected, it may be seen whether:

(a) the occupancy price/annual ground rent at the prescribed rate was
recovered? And

160
 (b) Was it granted free of cost, if so, on what conditions?

(iv) The terms and conditions of the grant of land to private industries may be:

(a) examined to see whether occupancy price is not fixed or fixed

provisionally and the advance possession of land is given to the grantee.
In such cases, interest at the prescribed rate from the date of handing over
of possession till the date of payment of final occupancy price whether
recovered or otherwise will have to be commented upon.

(b) Whether the land allotted is not being used for un-authorised purposes?

(v) The cases of unauthorized use of agricultural land for industrial purposes
regularized by charging penalty may be examined to see the adequacy of
penalty levied.

(vi) It may also be seen that industrial land is not unauthorisedly sold or
transferred without the permission of the Government except mortgaged for
obtaining loan for development of industry.

(vii) Lease are renewable on the expiry of their terms. It may be seen whether they
are renewed on due dates and lease rent is recovered at the prescribed rate on
the fresh market value of the land or continued to be recovered at pre-renewal
rate on the same value?

(viii) In case, the change of use of land has taken place on or after 31-3-79, whether
conversion tax is levied.

(ix) To see whether the stamp duty and registration fees have been levied on the
agreements for grant/lease of land under the relevant Acts. If not, for what
reasons? The aspect to be analysed and commented upon.

161
 (x) It may also be seen that the cases of unauthorized use of agricultural land for
industrial purposes and industrial land for agricultural purposes are
regularized by charging penalty, if any.

(xi) It should be examined whether the prescribed accounts, records etc. have been
properly maintained.

B. FURTHER READINGS:

- Report of the Comptroller and Auditor General of India for the year 1979-80
(Revenue Receipts), Government of Assam (Paragraph 4.1)

- Report of the Comptroller and Auditor General of India for the year 1979-80
(Revenue Receipts), Government of Kerala (Paragraph 6.4)

- Report of the Comptroller and Auditor General of India for the year 1979-80
(Revenue Receipts), Government of Rajasthan (Paragraph 4.2.10)

- Report of the Comptroller and Auditor General of India for the year 1985-86
(Revenue Receipts), Government of Orissa (Paragraph 4.10)

- Report of the Comptroller and Auditor General of India for the year 1986-87
(Revenue Receipts), Government of Rajasthan (Paragraph 5.11)

162
V. ALLOTMENT OF GOVERNMENT LAND TO CO-OPERATIVE
SOCIETIES

A ISSUES FOR EXAMINATION IN AUDIT

With a view to highlighting omission/ irregularities of incorrect fixation of market

value, non-levy of interest, under valuation o the land etc. the following guidelines are
suggested.

(i) Examination of the adequacy of systems and procedures existing for the
computation and realization of ground rent, lease money, interest and penalty
etc. and for ensuring that the terms and conditions of leases are adhered to.

(ii) Whether adequate control and monitoring mechanisms have been devised to
prevent loss or leakage of revenue from leases, rent, penalty or interest etc.?

(iii) Whether the relevant records have been maintained properly to facilitate the
raising of demands and their recovery?

(iv) Whether lease deeds have been renewed, wherever necessary, in time, in
accordance with procedures / schedules prescribed in this regard and that there
has been no avoidable delays, resulting in loss of revenue, interest, etc?

(v) Whether all monies due to the Government for the award of leases, occupancy
rights either in the normal course or in cases of default have been correctly
and promptly realized?

(vi) Whether there has been any loss or leakage of revenue on account of lacunas
or loopholes in the rules framed for the purposes of on account of avoidable
delays in the issues of the necessary notifications?

(vii) Whether the machinery for detection of cases of evasion is adequate?

163
(viii) Whether the follow-up action taken for the recovery of receipts in arrears and
the measures taken to reduce arrears and to avoid their accumulation are
adequate?

(ix) Where the land is granted free of occupancy price or free of revenue etc. it
may be seen:

(a) Whether the land is situated outside the municipal limit?

(b) The purpose for which the land was granted.

(c) Whether the same has not been diverted for any other profitable purposes?
And

(d) What were the reasons for non-levy of occupancy price and land revenue?

(x) If the land is situated within the municipal limit and has been granted to a co-
operative society for the purposes of playground hospitals, hostels, etc. where
no profit is expected, it may be seen:

(a) Whether the occupancy price / annual ground rent. Lease etc. prescribed
has been recovered?

(b) Whether it was granted free of cost, if so, on what conditions?

(c) Whether the conditions of grant of land have been fulfilled?

(xi) It may also be examined to see:

(a) Whether occupancy price has been fixed provisionally and the advance
possession of land given to the grantee? In such cases, interest at the
prescribed rate from the date of payment of final occupancy price
recovered or otherwise may be commented upon.

164
 (b) Whether the land allotted is being used for un-authorised purposes?

(xii) Whether the cases of un-authorised use of agricultural land for commercial /
industrial purpose have been regularized by levy of penalty? Adequacy of
penalty may be examined with reference to the penal provisions.

(xiii) Whether land allotted to the Co-op.Societies has been un-authorisedly sold or
transferred without permission of the Governemnt except mortgaged with the
Governor / bank for obtaining loan for development or construction purposes?

(xiv) Leases are renewable on the expiry of their term. It may be seen whether they
are renewed on due dates and lease money or rent recovered at the prescribed
rate or on the fresh market value of the land or communicated to be recovered
at pre-renewal rates?

(xv) Whether the stamp duty and registration fees have been levied on agreements
of grant/ lease of land under the relevant Acts. If not, due to what reasons?

(xvi) Whether the causes of un-authorised use of agricultural land for commercial
land industrial purposes and vice-versa are regularized by charging penalty,
etc. The adequacy of penalty levied may be examined with reference to the
penal provisions?

(xvii) Whether the accumulation of arrears of the factors holdings up speedy

recovery of Government amounts are attributable to some system failure viz.

(a) inadequacy of basic records,

(b) non-maintenance / improper maintenance of records and/or

(c) non-pursuance of follow-up action to expedite recoveries.

(xviii) The terms and conditions laid down on each transfer of land regulating
recovery of cost (lumpsum or by installments) from the transferees, the period
165
 during which recoveries are to be made, date of commencement and
chargeability of interest for default in payment may be seen.

(xix) Area of land declare surplus by concerned departments awaited disposal.

B. FURTHER READINGS:

- Report of the Comptroller and Auditor General of India for the year 1979-80
(Revenue Receipts), Government of Assam (Paragraph 4.1)

- Report of the Comptroller and Auditor General of India for the year 1979-80
(Revenue Receipts), Government of Kerala (Paragraph 6.4)

- Report of the Comptroller and Auditor General of India for the year 1979-80
(Revenue Receipts), Government of Rajasthan (Paragraph 4.2.10)

- Report of the Comptroller and Auditor General of India for the year 1985-86
(Revenue Receipts), Government of Orissa (Paragraph 4.1)

- Report of the Comptroller and Auditor General of India for the year 1986-87
(Revenue Receipts), Government of Rajasthan (Paragraph 5.11)

166
VI ENCROACHMENT ON GOVERNMENT LAND

A. ISSUES FOR EXAMINATION IN AUDIT

With a view to highlighting omissions/ irregularities, the following guidelines are

proposed for examination in audit:

(i) Whether the land encroached upon is for:-

(a) agricultural purposes or

(b) for non-agricultural purposes.

(ii) What is the period of encroachment?

(iii) Whether fine as per the provisions of the State Acts was levied?

(iv) Whether encroachments were regularized in accordance with the provisions of

the State Acts applicable?

(v) In cases where encroachments were regularized, whether these were

regularized as per the terms and conditions of the State Acts applicable?

(vi) Where encroachers were evicted, whether the fine and lease money assessed
for the period of encroachment was correct and recovered promptly?

(vii) Whether vigilance parties were formed to detect encroachments and necessary
action was taken immediately after reports of such vigilance parties?

(viii) Whether public notice was given while regularizing encroachments and cost
recovered from encroachers?

167
(ix) If eviction proceedings were undertaken by Government, whether the cost of
such proceedings was recovered from the encroachers?

(x) Was there any delay in detecting and reporting encroachment cases to higher
authorities?

(xi) Amounts due for recovery at the end of each of the years for the period to be
covered by the review / audit.

(xii) What action was taken by the Tahsildar / Collector after encroachments were
brought to their notice?

(xiii) If no action has been taken and cases are still pending, specific reasons
therefore will have to be scrutinized and commented upon suitably.

(xiv) In case it is stated that action could not be taken due to inadequate staff, it
should be seen whether the position was immediately brought to the notice of
the higher authorities with the facts and pursued from time to time?

(xv) It may also be seen:

(a) whether the encroachment is deliberate?

(b) Whether the persons who have made the encroachments are financially
socially well placed?

(c) In case of non-agricultural use, whether the land encroached was in

addition to the land already held by them?

(d) Whether the lands encroached have changed hands during the period of
encroachment before they are detected and whether such transactions have
appeared in mutation record?

168
 The proposed review on the subject would also include comments on the
following points.

(xvi) In respect of cases not yet finalized

The following aspects may be examined:

(a) Area of land encroached upon for agricultural and various non-agricultural
purposes.

(b) Period of encroachment,

(c) Assessment leviable,

(d) Number of cases and fine leviable (minimum/maximum)

(xvii) In respect of cases finalized by the Department

The following aspects may be examined:

(a) Number of cases,

(b) Area of land involved,

(c) Assessment levied,

(d) Amount due for recovery to the end of 31st July,

(e) Assessment leviable,

(f) Amount recovered and balance due,

The above information can be collected from the Encroachment Register

which is to be maintained as per directions contained in the State land
169
 Revenue Manual. In case this is not maintained, the omission needs to be
commented upon and the required information obtained from other files.

(xviii) Further, in Maharashtra, the Talathi is required to detect and note the
encroachment cases in the prescribed Register and bring them to the notice of
the Cricle Inspector. Circle Inspector in turn, reports these cases to the
Tahsildar for further action. It may be seen:

(a) Whether there was any delay in detection and also in reporting the cases?

(b) What action was taken by the Taken by the Tahsildar/Collector after the
encroachments were brought to their notice. If any action has been taken,
the period that lapsed between detection and action taken needs to be
commended upon.

(c) If no action has been taken and cases are still pending, specific reasons
therefor will have to be scrutinized. In case the department justifies that
action could not be taken due to inadequate staff, it should be seen
whether the position was immediately brought to the notice of the higher
authorities with the facts and pursued from time to time. The position
prevailing in the State may be examined in the light of the above.

(xix) In case any encroachment has been vacated, it should be seen whether the
expenses incurred therefor are levied and recovered from the encroacher? For
the purpose of determining such expenses, pay and allowances of the staff
engaged in the removal of encroachment will have to be calculated for the day
of the removal. It may be seen as to how the expenses were determined and
whether it includes the element of salary as aforesaid.

(xx) It will have to be seen whether the aspect of penalty leviable has been
considered by the Collector? If the question of levy of penalty has not been
considered, we may calculate the penalty and include it in our comment.

170
 (xxi) (a) In Maharashtra, the Collector is empowered to grant the encroached land
to the person making such encroachment either on occupancy rights or lease
hold rights on the payment of the sum not exceeding five times of the value of
the land and for a persons belonging to backward class 2 ½ times of the value
of land. For examining this aspect, the value of the land as ascertained by the
department for determining the rates of non-agricultural assessment can be
taken as basis.

(b) Besides above payment, the persons is also liable to a penal assessment not
exceeding five times of the ordinary land revenue subject to the minimum,
equal to the ordinary land revenue in case of backward classes and two and a
half times in case of others. In case the concession to backward classes is
given, it will have to be seen that documentary evidence is on record to show
that the persons who have been given this concession actually belong to
backward classes. Cases where this requirement has not been strictly
followed can be commented upon in the review.

(xxii) Apart from the above aspects, other interesting points which will be noticed
during the scrutiny of records may also be examined and included in the
review.

B. FURTHER READINGS:

- Report of the Comptroller and Auditor General of India for the year 1982-83
(Revenue Receipts), Government of Madhya Pradesh (Paragraph 5.2)

- Report of the Comptroller and Auditor General of India for the year 1982-83
(Revenue Receipts), Government of Orissa (Paragraph 4.5)

- Report of the Comptroller and Auditor General of India for the year 1986-87
(Revenue Receipts), Government of Madhya Pradesh (Paragraph 5.2)

Report of the Comptroller and Auditor General of India for the year 1987-88 (Revenue
Receipts), Government of Tamil Nadu (Paragraph 5.2).
171
 ANNEXURE – 1

Office of the Accountant General(Audit)-II, Maharashtra, Nagpur-440001.

Title sheet of Test Audit Report.

1. Name of the office inspected with name of

officer in charge with designation.

2. Date of Inspection

3. Name of the Section Officer.

4. Name of the Sr .Auditor/Auditor

5. Period covered by audit.

6. Selection made for detailed audit.

7. When any by whom the unit was last audited :

a) By our Audit.
b) By Departmental Audit.

8. Whether all the required documents

Were produced for audit.

9. No. of audit paras and total tax effect of

ojections, indicating under assessment
and over-assessment separately.

10. Persons responsible for paras with

amounts of under assessment or over
Assessment etc. (paras without T.E. are not
172
To be included).

11. Draft paras for inclusion in the conventional

Audit Report with name of the contributor.

12. Whether any special point was marked

for special scrutiny during local audit. Give
Reference to separate note.

13. Whether previous outstanding points were

examined and discussed on the spot where
necessary . Give reference to the verification
Memo.

14. Whether remittances in Treasuries for selected

Months are verified.

15. Whether the draft report was discussed with the

officer in- charge of the unit of Audit

16. Whether there is any important point for

consideration in Central Cell. If so, give reference
to the note.

17. Whether the time allotted for audit sufficient ?

If not give a note

18. Give in Annexure list of records seen and

the names of those who checked the same.

19. Dates of Supervision.

20 Name of the Gazetted Officer who
supervised the audit.

173
21. Name of Sub-Registrar/Tahsildar in-charge of
office during the period of audit.

Certified that all the prescribed

checks were Exercised.

Name and Signature of the

Inspection Section Officer

22. Remarks of G.O. who supervised

the audit.

23. Paras settled as a result of discussion.

Signature of the G.O who

supervised the audit.

(Action in central Cell}

174
 INDEX

This index has been compiled for the purpose of reference only and no expression used in
it should be considered in any way interpreting the rules.

ACCOUNTS PARAGRAPH

Reconciliation of 14.4
Revenue 12.4
Village level Appendix 2 A
Taluka level Appendix 2 B

Additional Special Assessment.

Leviable on areas of ex Hyderabad State 6.16

Agricultural Land Maharshtra Agricultural Land( Ceiling on Holding) Act, 1961

Audit checks 15.9

Classification of Land(Irrigated Dry crop etc.) 15.2
Object of 15.1
Surplus Land
Bar on transfer 15.8
Compensation 15.6
Damage for use and occupation 15.5
Declaration of 15.3 and 15.4
Distribution 15.7

Agricultural Land Revenue

Subject to Survey 6.1
Agricultural
Defined 8.5
175
Annewari
How worked out 7.5
Audit
- of collections 14.2
- of expenditure along with or receipts 14.15
- of Receipts under statutes
- to verify internal procedure 1.8
- assess to records for 1.7

Audit Reports
Form of – 14.7
Money values of objections for – 14.7

Building Site
-Defined 8.18
N.A.A. on - See under NAA

Cess
- Leviable on NAA 6.11, 8.11
- Leviable on Royalty 11.4
- Education/Employment Guarantee See under EGS
- Land Revenue includes – 6.8
- Zill Parishad and village Panchayat. 2.6

Conversion
Application for – of user of land 8.7
Levy of Tax 8.19
Penalty for without permission 8.9

Demand Notice
Recovery of cost of 6.7

Education Cess
Special assessment 6.13
176
Employment Guarantee Cess.
Definition of – 6.15
Rate of levy of - 6.15
Encroachment
Assessment of land held in 10.3
Lands under for housing backward classes 10.4
Penalty for - 10.1
Regularization of - 10.2

Foras See under Tenure

Inami See under Tenure

Inspection Report
How to be drafted 14.7
Money value to be included in 14.7
Singed by A.O. 14.14
Singed by Sr.DAG/DAG 14.23

Kami Jasti Patrak

Audit of - 14.2

Khatepusthika
Supply of - 10.7

Land
Agricultural 8.5
Alienated 4.3
Auction of grazing 9.9
Ceiling on 15
Classification of - 6.3
Definition of - 4.1
Disposal of alluvial land - 9.3
177
Disposal of Government land 6.17
Inam - 9.4
- for disposal of deed 8.5
- for drainage, water works, etc. 9.7
- for educational and charitable purpose 8.5
- for form building 8.5
-for freedom fighter 9.11
- for Grazing cattle 9.8
- for public worship 8.5
- School and colleges 9.13
Grant of – for religious purpose 9.6
On lease 9.15
Salt marsh – for reclamation 9.12
Title of Government over - 4.2
Transfer of – to local bodies 9.10

Land Revenue
- Act administered by whom 3.7
- Includes cess 6.8
Amount recovered as arrears of - 10.8
Definition of - 4.1, 4.4
Government empowered to levy 2.1
Increased - 6.12
Increased-linked with holding 6.14
Increase – on original - 6.14
Land free of 9.8
Penalty for default of 6.6
Receipt for payment 12.8
Recovery of suspended 7.4
Reduction of - 7.2
Remission of - 7.1, 7.11, 7.12
Suspension of - 7.3
Who is liable to pay 6.5

178
Lease hold Tenure See under Tenure
Miner and Minerals
Major Minerals 11.1
Minor Minerals 11.2
Minerals-Dead rent 11.4
Mines and Minerals Government title to 11.6
Mining lease-Important conditions for grant of 11.5
Minor Minerals Royalty for extraction of 11.3
Rates of Royalty on minor Minerals Appendix 5
Item –8
Non Agricultural Assessment
- fixed prior to 15-8-1967 valid 8.1
- on building sites 8.18
- on Municipal Street lands 8.10
- on Pardi land when exempted 8.10
- on Wada land when exempted 8.10
- should be charged on demarcated area 8.10
- commencement of 8.3
- guarantee period of 8.1, 8.3
- Local cess on 6.11, 8.11
- leviable on Agricultural produce Market Committee 8.10
leviable on land used for clubs 8.17
leviable on land used for fairs 8.12
leviable on land used for Maharashtra Housing Board 8.15
leviable on land used for Maharashtra Industrial 8.13
Development Corporation

Leviable on land used for Municipalities and 8.14

Municipal Committee
Leviable on land used for salt manufacture 8.20
Procedure for assessment of 8.2
Rates of – in urban area 8.4
Rules for in ex-Hyderabad region Appendix IC
Rules for in Ex-M.P. region Appendix IB
179
Rules for in Western Maharashtra Appendix IA

Nazul Land
Defined 8.16
Lease of 9.16

Newly assessed Tenure

....... See under Tenure

Objection
Power of Branch Officer to waive 14.11

Objection Book
Maintenance of - 14.12

Occupancy Price
Concession of - 9.5

Paise Wari
..... See under ‘Annewari”

Pension and Tax

...... See under Tenure

Quit and Governed Rent

..... See under Tenure

Remission
..... See under
“Land Revenue”
Rent
- for erection of poles , Towers, Stay roads, etc. 10.6
- for laying watermains and pipe lines 10.6

180
Revenue Department
Divisions and Branches of - 3.3
Organizational set up of - 3.1

Royalty
On mines and minerals 11.3
Cess on 11.4

Sanad
.... See under ‘Tenure’

Sand
- on River beds 11.7
Settlement
Meaning of - 6.3
Period of - 6.3
Special Assessment
On commercial crops 6.13

Suspension
- of land Revenue See under
land Revenue
Tenancy at will
...... See under ‘Tenure’

Tenure
Foras 13.2
Inami 13.2
Leasehold 13.2
Newly Assessed 13.2
Pension and Tax 13.1, 13.2
Quit and Ground Rent 13.1, 13.2
Revisable 13.1
181
Sanadi 13.1, 13.2
Special and Inami 13.1, 14.5
Tenancy at will 13.1, 13.2
Toka 13.2

Toka
.... See under Tenure
Water
- form notified source 10.5
- Rates for drawl of - 10.5

182