Legal Question in Construction Law in India

State of Maharashtra- Under the provisions of the Companies Act 1956 and Bombay Tenancy & Agricultural Lands Act,1948 a company (having due powers under its Memorandum of Association and Articles of Association) has to obtain permission under Sec.63 to purchase agricultural lands.Further a company (having due powers under its Memorandum of Association and Articles of Association) has to obtain permission under the provisions of Sec.63-1A to purchase agricultural land in case of purchase exceeding 10 Hectares if the purpose of purchase is industrial in nature.

If at all a company has

(i)no powers to purchase agricultural lands under its Memorandum and Articles of Association;and

(ii)has not obtained permission under Sec 63 or under Sec.63-1A;and

(iii)has executed a Sale Deed of Agricultural lands from the farmers;and

(iv) the local revenue authorities (without checking the details of the company)have recorded the

name of such company as the owner of such land.

Kindly mention the procedure-legal and/or practical as to how can such a company further transfer such purchased land to a 2nd company which possesses all the legal mandates such as provisions in Memorandum,Articles,permissions under Sec.63 & 63-1A?.


Asked on 4/01/11, 11:12 pm

1 Answer from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Memorandum & Articles of a company do not require to provide for purchase of land with permission u/s.63 in express terms. A company is a jural person and can do all the acts expressly or implied authorised to do.

Section 63-1A of BT&AL;Act refers to purchase of agricultural land for bona fide industrial user etc. and in fact dispense with prior permission contemplated by section 63, which provided for prior permission for purchase of an agricultural land by non-agriculturist.

In the State of Maharashtra, most of the Districts have development plans applicable to entire District. Check zone of land in question as also check whether land in question is notified under section 88(1)(b) of BT&AL;Act.

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Answered on 4/11/11, 10:12 pm


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