Legal Question in Real Estate Law in India

Sir

I am interested to purchase new tenure agricultural land (navi sharat ) in Gujarat in industrial zone. As per sec 63 AA of Gujarat Tenancy & Agricultural Land Act no previous permission of collector is required for purchase by a person of such land for bonafide industrial use. I shall purchase land in my name right now and apply for permission certificate to collector as per law.

However the name and entity doing bonafide industrial activity would be decided later on as it is difficult to plan it right now.

Is it legally valid if I purchase land in my name and later on industrial activity would be carried out by a firm or company where I would be proprietor, partner or director? The criteria of bonafide industrial use would be complied with.


Asked on 8/19/15, 1:28 am

1 Answer from Attorneys

Vivek Mapara Vivek N. Mapara

Sir

You can purchase a New Tenure Agricultural Land for Bona fide Industrial Purpose. For which you do not require any permission from Collector u/s 63 AA of Gujarat Tenancy & Agricultural Land Act, and under 65 B of the Bombay Land Revenue Code.

Now after you purchase this land, you have to notify the Collector and Mamlatdar regarding purchase of such land for Bona fide industrial purpose in prescribed form. Upon this notice being given, the Collector will initiate an inquire as to whether your purchase of such land is actually for bona fide industrial purpose or not and after inquiry he will issue a certificate, pursuant to which you shall commence the industrial activity within 3 years there from.

Now "bona fide industrial purpose" is statutorily defined to mean an activity of manufacture, preservation or processing of goods, or any handicraft, or industrial business or enterprise, carried on by any person and includes construction of industrial buildings used for the manufacturing process or purpose, or power projects or port projects and ancillary industrial usage like research and development, godown, canteen, office building of the industry concerned, or providing housing accommodation to the workers of the industry concerned, or establishment of industrial estate including a co-operative estate or service industry or tourism or cottage industry.

Now while sending notice to the collector and in the inquiry conducted by the Collector, you have to specifically demonstrate your business plan that how you propose to use such land for industrial purpose. The scheme has to be realistic and precise and not just merely an rough idea or thought. You should have all data and plans in place, otherwise, Collector will deny to issue certificate and the land will be forfeited.

Where are you based in Gujarat. If you require, i can assist you with the procedure.

Look forward to hear from you.

Best Regards

Vivek N Mapara

vnmlaws.com

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Answered on 9/02/15, 11:59 pm


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