Date: 2025-12-10Category: Not ApplicableState: MaharashtraCountry: India
HB-2456 Part 8 Extra 102 Date 10-12-2025, Publication of bill to amend the Maharashtra Land Revenue Code, 1966 as L.A. Bill No. CII of 2025 by Minister for Revenue. Extra Ord. No. 102, No.42(3).
**Executive Summary**
This document is the English translation of the Maharashtra Land Revenue Code (Second Amendment and Validation) Bill, 2025 (L.A. Bill No. CII of 2025), introduced in the Maharashtra Legislative Assembly on December 10th, 2025. The bill amends the Maharashtra Land Revenue Code, 1966, to validate the levy, demand, and collection of mortgage fees by the Government from Occupant Class II for mortgaging property for non-agricultural purposes, with retrospective effect from February 27th, 2009.
**Key Points / Main Content**
* **Amendment and Title:**
* The Act is named the Maharashtra Land Revenue Code (Second Amendment and Validation) Act, 2025.
* **Amendment to Section 36 of the Maharashtra Land Revenue Code, 1966:**
* Sub-section (4) is amended to replace “or the Maharashtra State Financial Corporation" with "or a corresponding new Bank within the meaning of clause (b) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 or the Maharashtra State Financial Corporation”.
* A proviso is inserted before the Explanation, effective from February 27th, 2009, stating that Occupant Class II shall pay mortgage fees at a rate specified by the Government for mortgaging property for non-agricultural purposes in favor of specific financial institutions.
* **Validation of Past Actions:**
* Any levy, demand, and collection of mortgage fees from February 27th, 2009, until the Act's commencement, for non-agricultural mortgages by Occupant Class II in favor of specified institutions are deemed valid.
* No legal proceedings can be initiated based on the argument that the original code did not provide for such fees.
* No suits can be maintained for the refund of mortgage fees collected with effect from February 27th, 2009.
* **Statement of Objects and Reasons:**
* The amendment aims to address the Bombay High Court's ruling against levying mortgage fees without legal authority based on a 2009 Government Resolution.
* The amendment provides a legal basis for the Government to collect mortgage fees for non-agricultural mortgages by Occupant Class II.
* **Delegated Legislation:**
* The bill delegates to the State Government the power to specify the rate of mortgage fees by general or special order for mortgaging property of occupant class II.
* **Financial Implications:**
* The Bill does not involve any recurring or non-recurring expenditure from the Consolidated Fund of the State.
**Impact Analysis**
**Stakeholder: Occupant Class II**
* **Impact:** Must pay mortgage fees at rates specified by the Government for mortgaging property for non-agricultural purposes in favor of certain financial institutions.
* **Action Required:** Comply with the new fee structure when mortgaging property for non-agricultural purposes.
**Stakeholder: Government / Revenue Officers**
* **Impact:** Legal validation for previously collected mortgage fees; authority to continue collecting such fees.
* **Action Required:** Enforce the collection of mortgage fees according to the provisions of the amended Act and defend against any legal challenges related to past collections.
**Stakeholder: Co-operative Societies, State Bank of India, and Corresponding New Banks, Maharashtra State Financial Corporation**
* **Impact:** Mortgage fees are applicable when occupants class II mortgage properties to them.
* **Action Required:** N/A
Key Entities Referenced
Constitution of India: Referenced as the basis for translating the bill into English.
Maharashtra Land Revenue Code, 1966: The primary law being amended by this bill regarding land revenue in Maharashtra.
Maharashtra Land Revenue Code (Second Amendment and Validation) Act, 2025: The Act introduced in the Maharashtra Legislative Assembly that amends the Maharashtra Land Revenue Code, 1966.
RNI No. MAHENG /2009/35528
महाारााष्ट्रट शाासन रााजपत्र
असाधााराण भााग आठ
वर्षष ११, अंक ४२(३)] बुुधावारा, डि�संबुरा १०, २०२५/अग्रहाायण १९, शाके १९४७ [ पष्ृठ े 5, डिकमं त : रुपय े२७.००
असाधााराण क्रमांक १०२
प्रााडिधाकृत प्राकाशान
महाारााष्ट्र डिवधाानमं�ळााचेे अडिधाडिनयम व रााज्यपालांांनी प्राख्याडिपत केलांेलांे अध्यादेेशा व केलांेलांे
डिवडिनयम आडिण डिवडिधा व न्याय डिवभाागाक�ून आलांेलांी डिवधाेयके (इंंग्रजी अनुवादे).
In pursuance of clause (3) of article 348 of the Constitution of India, the following translation
in English of the Maharashtra Land Revenue Code (Second Amendment and Validation) Bill, 2025
(L.A. Bill No. CII of 2025), introduced in the Maharashtra Legislative Assembly on the 10th December
2025, is hereby published under the authority of the Governor.
By order and in the name of the Governor of Maharashtra,
SATISH WAGHOLE,
Secretary (Legislation) to Government,
Law and Judiciary Department.
L. A. BILL No. CII OF 2025.
A BILL
further to amend the Maharashtra Land Revenue Code, 1966.
Mah. WHEREAS it is expedient further to amend the Maharashtra Land
XLI of Revenue Code, 1966, for the purposes hereinafter appearing; it is hereby enacted
1966.
in the Seventy-sixth Year of the Republic of India as follows:-
1. This Act may be called the Maharashtra Land Revenue Code (Second Short
Amendment and Validation) Act, 2025. title.
Mah. 2. In section 36 of the Maharashtra Land Revenue Code, 1966 (hereinafter Amendment
XLI of referred to as “the said Code”), in sub- section (4),- of section 36
1966. of Mah. XLI of
1966.
(i) for the words “or the Maharashtra State Financial Corporation” the
following words, brackets, letter and figures “or a corresponding new Bank
भााग आठ-१०२—१ (१)
एच बीी-२४५६—१2 महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग आठ, डि�संबुरा १०, २०२५/अग्रहाायण १९, शाके १९४७
within the meaning of clause (b) of section 2 of the Banking Companies 40 of
(Acquisition and Transfer of Undertakings) Act, 1980 or the Maharashtra 1980.
State Financial Corporation”, shall be substituted;
(ii) before the Explanation the following proviso shall be inserted, and
shall be deemed to have been inserted with effect from the 27th February 2009,
namely:-
“Provided that, the Occupant Class II shall pay to the Government the
mortgage fees, at such rate as may be specified by the Government by general
or special order, for mortgaging his property, for any purpose other than
agriculture, in favour of a co-operative society, the State Bank of India, the
corresponding new Bank or the Maharashtra State Financial Corporation.”.
Validation. 3. Notwithstanding anything contained in the said Code or in any rules
made thereunder or in any judgment, decree or order of any court, tribunal,
or any other authority, any levy, demand and collection of mortgage fees by
the Government or any revenue officer, during the period commencing on the
27th February 2009 and ending on the date of commencement of the Maharashtra
Land Revenue Code (Second Amendment and Validation) Act, 2025, from occupant Mah.
class II for mortgaging his property, for any purpose other than agriculture, in --- of
favour of a co-operative society or the State Bank of India or a corresponding 2025.
new bank or the Maharashtra State Financial Corporation, in consideration
of a loan advanced to him by such co-operative society, State Bank of India,
corresponding new bank, or as the case may be, the Maharashtra State Financial
Corporation, shall be deemed to have been validly levied, demanded, collected
or taken and shall be deemed always to have been validly levied, demanded,
collected or taken under the said Code, as amended by the Maharashtra Land
Revenue Code (Second Amendment and Validation) Act, 2025; and accordingly,- Mah.
--- of
2025.
(i) no suit, prosecution or other legal proceedings shall lie in
any court or before any tribunal or other authority on the ground
that, the provisions of the said Code prior to such commencement
did not provide for levy, demand and collection of such mortgage
fees or action by the Government or revenue officer therefor; and
(ii) no suit, prosecution or other legal proceedings shall lie or
be maintained or continued in any court or before any tribunal or
other authority, for the refund of any such mortgage fees so levied,
demanded, collected or for any action taken with effect from the
27th February 2009.महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग आठ, डि�संबुरा १०, २०२५/अग्रहाायण १९, शाके १९४७ 3
STATEMENT OF OBJECTS AND REASONS
Section 36(4) of the Maharashtra Land Revenue Code, 1966 (Mah. XLI
of 1966) provides that it shall be lawful for an Occupant Class II to mortgage
his property in favour of the State Government, co-operative society, Banks or
Maharashtra State Financial Corporation in consideration of a loan advanced
to him.
2. The Government has issued a Government Resolution dated the
27th February 2009 to levy mortgage fees specified therein if Occupancy Class- II
or lease hold lands are mortgaged by occupant class II to financial institutions for
any purpose other than agriculture in consideration of a loan advanced to him.
3. The Bombay High Court, Nagpur Bench in Writ Petition No. 4086 of
2011, vide order dated 29.08.2022, held that clause (B) of the Government
Resolution dated 27.02.2009 seeking to levy mortgage fees is held to be without
any authority of law and quashed the same. Therefore, the Government
considers it necessary to provide for levy of mortgage fees in the said Code itself.
4. The Government, therefore, considers it expedient to suitably amend
section 36 of the said Code, with a view to provide that the Occupant Class
II shall pay to the Government the mortgage fees, at such rate as may be
specified by the Government by general or special order, for mortgaging
his property, for any purpose other than agriculture, in favour of a co-
operative society, the State Bank of India, the corresponding new Bank
or the Maharashtra State Financial Corporation with retrospective effect
from the 27th February 2009. It is also proposed to provide for validation of
levy, demand and collection of mortgage fees by the Government since the
27th February 2009.
5. The Bill seeks to achieve the above objectives.
Nagpur, CHANDRASHEKHAR BAWANKULE,
Dated the 9th December 2025. Minister for Revenue.4 महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग आठ, डि�संबुरा १०, २०२५/अग्रहाायण १९, शाके १९४७
MEMORANDUM REGARDING DELEGATED LEGISLATION
The Bill involves the following proposal for delegation of legislative power,
namely :—
Clause 2.—Under this clause, in sub-clause (ii), power is taken to the
State Government to specify by general or special order the rate of mortgage
fees for mortgaging property of occupant class II.
2. The above-mentioned proposal for delegation of legislative power is of
a normal character.महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग आठ, डि�संबुरा १०, २०२५/अग्रहाायण १९, शाके १९४७ 5
FINANCIAL MEMORANDUM
Clause 2 of the Bill provides for amendment of section 36 of the Maharashtra
Land Revenue Code, 1966 (Mah. XLI of 1966) to levy the mortgage fees by
the Government for mortgaging by the occupant class II his property for any
purpose other than agriculture, in favour of a Co-operative Society or State Bank
of India or the corresponding new Bank or the Maharashtra State Financial
Corporation. There is no provision in the Bill which would involve the recurring
or non-recurring expenditure from the Consolidated Fund of the State on its
enactment as an Act of the State Legislature.
ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY DIRECTOR,
RUPENDRA DINESH MORE, PRINTED AT GOVERNMENT PRESS AND BOOK DEPOT, CIVIL LINES, NAGPUR-440 001 AND
PUBLISHED AT DIRECTORATE OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, 21-A, NETAJI SUBHASH
ROAD, CHARNI ROAD, MUMBAI-400 004. EDITOR : DIRECTOR, RUPENDRA DINESH MORE.