Date: 2025-12-10Category: Not ApplicableState: MaharashtraCountry: India
HB-2466 Part 5-A Extra 44 Date 10-12-2025, Publication of bill to amend the Maharashtra Land Revenue Code, 1966 as L.A. Bill No. CII of 2025 by Section Officer M.L.S. Extra ORd. No. 44, No.19(3).
**Executive Summary**
This document presents the Maharashtra Land Revenue Code (Second Amendment and Validation) Bill, 2025, introduced in the Maharashtra Legislative Assembly on December 10th, 2025. The bill amends the Maharashtra Land Revenue Code, 1966, to allow the government to levy mortgage fees on Occupant Class II land mortgaged for purposes other than agriculture. This validation has a retrospective effect from February 27, 2009.
**Key Points / Main Content**
* **Amendment Overview:**
* The bill is named the "Maharashtra Land Revenue Code (Second Amendment and Validation) Act, 2025."
* It amends section 36 of the Maharashtra Land Revenue Code, 1966.
* **Mortgage Fees for Occupant Class II:**
* Occupant Class II shall pay mortgage fees to the government at rates specified by the government for mortgaging property for purposes other than agriculture. This applies to mortgages in favor of cooperative societies, the State Bank of India, corresponding new banks, or the Maharashtra State Financial Corporation.
* **Validation of Past Actions:**
* Any levy, demand, and collection of mortgage fees by the government from February 27, 2009, until the commencement of this Act, from occupant class II for non-agricultural purposes are deemed valid.
* No legal proceedings can be initiated against the government or revenue officers for actions related to the levy, demand, or collection of these mortgage fees before the act's commencement.
* No legal proceedings can be initiated or continued for the refund of mortgage fees levied, demanded, or collected with effect from February 27, 2009.
* **Delegated Legislative Power:**
* The bill delegates power to the State Government to specify, via general or special order, the rate of mortgage fees for mortgaging the property of occupant class II.
* **Financial Implications:**
* The bill does not involve recurring or non-recurring expenditure from the Consolidated Fund of the State.
**Impact Analysis**
**Stakeholder:** Occupant Class II Landowners
**Impact:**
* Class II landowners will be required to pay mortgage fees on land mortgaged for purposes other than agriculture in favour of specific financial institutions.
**Action Required:**
* Class II landowners must pay mortgage fees as specified by the government for relevant mortgage transactions.
**Stakeholder:** Government/Revenue Officers
**Impact:**
* The government gains the authority to levy mortgage fees.
* Past actions regarding fee collection are validated, protecting officers from legal challenges.
**Action Required:**
* The government must specify the rate of mortgage fees.
* Revenue officers should follow the guidelines in the Act for the collection and validation of the mortgage fees.
**Stakeholder:** Cooperative societies, the State Bank of India, corresponding new banks, or the Maharashtra State Financial Corporation
**Impact:**
* Mortgages from Occupant Class II will now be subject to mortgage fees.
**Action Required:**
* The bill does not require any action from Stakeholder Cooperative societies, the State Bank of India, corresponding new banks, or the Maharashtra State Financial Corporation
Key Entities Referenced
Maharashtra Land Revenue Code, 1966: The principal act being amended by the current bill.
Maharashtra Land Revenue Code (Second Amendment and Validation) Act, 2025: The short title for the bill.
Maharashtra Legislative Assembly: The legislative body where the bill was introduced.
Nagpur: The city where the document was issued.
RNI No. MAHBIL /2009/40123
महाारााष्ट्रट शाासन रााजपत्र
असाधााराण भााग पाच–अ
वर्षष ११, अंक १९ (३) ] बुुधावारा, डि�संबुरा १०, २०२५/अग्रहाायण १९, शाके १९४७ [पृष्ठेे ६, डिकंमत : रुपये ३६.००
असाधााराण क्रमांक ४४
प्रााडिधाकृत प्राकाशान
महाारााष्ट्र डिवधाानसभाेत व महाारााष्ट्र डिवधाानपरिरार्षदेेत सादेरा केलेेलेी डिवधाेयके (इंंग्रजी अनुवादे).
MAHARASHTRA LEGISLATURE SECRETARIAT
The following Bill was introduced in the Maharashtra Legislative Assembly on the
10th December, 2025 is published under Rule 117 of the Maharashtra Legislative Assembly Rules
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
)१(
भााग पााच-अ–४४-१.
एचबीी २४६६–१.2 महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग पाच–अ, 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 पाच–अ, 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 पाच–अ, 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 पाच–अ, 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.
भााग पााच-अ–४४-२.
एचबीी २४६६–२.6 महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग पाच–अ, डि�संबुरा १०, २०२५/अग्रहाायण १९, शाके १९४७
GOVERNOR’S RECOMMENDATION UNDER ARTICLE 207 OF THE
CONSTITUTION OF INDIA
(Copy of Government of Maharashtra Order, Law and Judiciary Department)
In exercise of the power conferred upon him by clause (1) of Article 207
of the Constitution of India, the Governor of the Maharashtra is pleased to
recommend to the Maharashtra Legislative Assembly, the introduction of the
Maharashtra Land Revenue Code (Second Amendment and Validation) Bill,
2025.
Vidhan Bhavan, JITENDRA BHOLE,
Nagpur, Secretary-1,
Dated the 10th December, 2025. Maharashtra Legislative Assembly.
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.