Land is not merely a physical resource—it is the very backbone of our economy, culture, and daily lives. In a state like Maharashtra, where land carries enormous agricultural as well as industrial value, its effective regulation becomes indispensable. To achieve this, the Maharashtra Land Revenue Code, 1966 (MLRC) serves as the cornerstone of land administration. in this Assessment and Settlement is one of the aspect.
This landmark legislation is not just a technical statute but a comprehensive framework that governs every dimension of land ownership, classification, and revenue collection. From farmlands in Vidarbha to commercial hubs in Mumbai, the MLRC lays down clear rules on how land revenue is assessed, settled, and collected.
In this article, we will explore Chapters VI and VII of the Code, which specifically deal with assessment and settlement of land revenue. Our journey will unravel the principles, procedures, and rationale behind the system—designed to ensure fairness, transparency, and long-term stability for both cultivators and urban landholders.
Part I: The Core Principles of Land Revenue
At its essence, land revenue is an annual levy payable to the State Government for the right to occupy, use, and derive benefits from land. The MLRC makes it clear that all land within Maharashtra is liable for revenue payment, unless specifically exempted.
For the purpose of assessment, the Code broadly classifies land into two major categories:
- Agricultural Land – fields used for farming, horticulture, orchards, and allied activities.
- Non-Agricultural Land – land utilized for residential colonies, commercial establishments, industries, or other non-farming purposes.
Since the economic yield and social context of these two categories differ vastly, the principles and methods of revenue calculation also vary accordingly.
Part II: Settlement of Agricultural Lands (Sections 90–107)
The settlement and assessment of agricultural land is one of the most significant functions under the MLRC. The objective is to arrive at a fair, predictable, and farmer-friendly land revenue, generally fixed for a term of 30 years, known as the “term of a settlement.”
The Settlement Officer – Architect of the Process
The journey begins with the State Government appointing a Settlement Officer, who acts as the chief architect of the settlement process. Far beyond being a mere administrator, the Settlement Officer undertakes an impartial, data-driven inquiry into the agricultural and economic conditions of the concerned area.
Methodology: Zones, Groups, and Standard Rates
The system operates in a structured and scientific manner:
- Zoning: The state is divided into zones—talukas or clusters of talukas—with similar climate, soil, rainfall, and cropping patterns. For instance, the coastal Konkan zone (with abundant rainfall and paddy dominance) is distinct from the drier Vidarbha cotton belt.
- Grouping: Within each zone, land is further organized into groups. Each group comprises villages or parts of villages sharing similar agricultural advantages and disadvantages. Factors considered include:
- Soil fertility and topography
- Rainfall and climate consistency
- Market value of crops grown
- Average yields over several years
- Accessibility to roads, railways, and local mandis
- Standard Rate of Assessment: After classification, the Settlement Officer determines a standard rate of assessment for each group. This forms the backbone of the revenue system.
Section 92 – A Farmer-Friendly Safeguard
One of the most progressive provisions of the MLRC is Section 92, which protects farmers from being penalized for improving their own land. It states that any enhancement in productivity resulting from private improvements—such as wells, irrigation facilities, or superior seeds—cannot be considered while fixing assessment rates.
This ensures that farmers are encouraged to invest in land development without the fear of higher taxes. The law further caps the standard rate at 1/25th of the average crop yield per acre, thereby keeping the revenue burden reasonable.
A Public-Centric, Transparent Process
The MLRC emphasizes democracy and transparency in settlement proceedings:
- Forecast Report (Section 91): The State Government first prepares a forecast report outlining expected revenue outcomes and draft proposals, which are placed before the State Legislature for scrutiny.
- Detailed Inquiry (Section 96): The Settlement Officer conducts an exhaustive on-ground survey, gathering data on rainfall, crop yields, local wages, cost of living, and indebtedness levels of cultivators. This ensures the assessment reflects actual socio-economic realities.
- Settlement Report: A detailed settlement report is prepared with recommendations on assessment rates.
- Public Participation (Section 97): The report is published publicly, and affected individuals are allowed to raise objections. These are reviewed by the Collector and sent along with the report to the Government.
- Final Decision: The State Government passes a final order, keeping in view both administrative recommendations and public objections. If disputes persist, the matter may even be referred to the Maharashtra Revenue Tribunal for judicial review.
Once finalized, the settlement remains in force for three decades, ensuring stability for farmers and landholders.
Part III: Assessment of Non-Agricultural Lands (Sections 108–120)
While agriculture remains central to Maharashtra’s economy, the state is also home to sprawling urban centers like Mumbai, Pune, and Nagpur. Recognizing this dual reality, the MLRC creates a distinct framework for Non-Agricultural Assessment (NAA).
Classification and Fixing Rates
Like agricultural land, non-agricultural land is also categorized into classes or blocks, largely based on market value. Here, the Collector plays the pivotal role in fixing NAA rates.
To prevent excessive taxation, the law provides an upper ceiling: the standard NAA per square meter in urban areas cannot exceed 3% of the market value of land.
Differential Rates for Different Uses
The Code takes a pragmatic approach by linking assessment rates to the nature of land use:
- Residential Use: The standard rate is applied.
- Industrial Use: Assessed at 1.5 times the standard rate, considering higher economic output.
- Commercial Use: Generally assessed at 3 times the standard rate in municipal areas, reflecting the significant profits generated by commercial activities.
Conversion and Re-assessment
Whenever agricultural land is converted into non-agricultural use—or when land use shifts from one category to another (say, residential to commercial)—a fresh assessment is levied. Importantly, the liability begins not from the date of permission, but from the actual date of commencement of the new use.
Exemptions in Public Interest
Certain lands are exempted from non-agricultural assessment, particularly those used for:
- Religious worship and public temples
- Hospitals and healthcare facilities
- Educational or charitable institutions (on a non-profit basis)
These exemptions reflect the state’s commitment to encouraging activities that serve the community at large.
Conclusion: A Transparent and Equitable Framework
The Maharashtra Land Revenue Code, 1966 is a shining example of a governance mechanism that balances state interests with public welfare. Its system of assessment and settlement is neither arbitrary nor rigid—it is a dynamic, participatory, and rational process involving multiple stakeholders: the legislature, administrators, and most importantly, the people.
For law students and scholars, the MLRC provides a rich case study in land law, governance, and public administration. For ordinary citizens, it offers reassurance that land revenue is not an exploitative tax but a carefully designed contribution—based on fairness, equity, and public accountability—towards the state’s growth and development.
By safeguarding farmers’ improvements, differentiating between land uses, and ensuring public involvement, the Code demonstrates how effective land governance can unlock the potential of this most vital resource—land.
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Download The Bare Act for Maharashtra Land Revenue Code,1966 (MLRC,1966)
