The Maharashtra Agricultural Land Leasing Act, 2017.
Maharashtra · state statute
Open in Lexace · Ask the AI about this act2023 : Mah. XXVIII] 1
THE MAHARASHTRA AGRICULTURAL LAND LEASING ACT, 2017
[Text as on 15th January 2025]
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CONTENTS
PREAMBLE.
SECTIONS.
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
LAND LEASE – AGREEMENT, TERMINATION, RIGHTS AND RESPONSIBILITIES
3. Agricultural land leasing under this Act.
4. Rights and responsibilities of Land Owner–Lessor.
5. Rights and responsibilities of Lessee Cultivator.
6. Non-transferability and non-heritability of lease.
7. Termination of lease.
CHAPTER III
ENFORCEMENT OF LEASE AGREEMENT AND DISPUTE RESOLUTION
8. Enforcement of lease agreement.
9. Dispute resolution.
10. Breach of agreement.
11. Reinstatement of Land Owner–Lessor.
12. Bar of jurisdiction of Civil Courts.
CHAPTER IV
MISCELLANEOUS
13. Protections for persons acting in good faith.
14. Power to make rules.
15. Overriding effect and savings.
16. Power to remove difficulties.
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MAHARASHTRA ACT No. XXVIII OF 20231
[THE MAHARASHTRA AGRICULTURAL LAND LEASING ACT, 2017.]
[This Act received the assent of the President on the 16th June 2023; assent was first published
in the Maharashtra Government Gazette, Part IV, on the 27th June 2023.]
An Act to enact the law relating to agricultural land leasing in the
State of Maharashtra and for the matters connected
therewith or incidental thereto.
WHEREAS the prohibitions and restrictions contained under the various existing State tenancy
laws governing agricultural land leasing have forced the land owners and lessee cultivators to have
informal agreements only for cultivating the land, thereby depriving the lessee cultivators of the
benefits which are normally due to them;
AND WHEREAS such existing laws also create insecurity among land owners to lease -out
agricultural land which reduces the access to land by the landless poor, small and marginal farmers and
others by way of leasing;
AND WHEREAS it is expedient to enact a law to permit and facilitate leasing of agricultural land
in the State of Maharashtra, so as to improve agricultural efficiency and equity, access to land by the
landless and semi -landless poor, occupational diversity and to promote accelerated rural growth and
transformation; to provide recognition to farmers cultivating agricultural land on lease for enabling
them to access loans through credit institutions, insurance, disaster relief and other support services
provided by the Gove rnment, while protecting fully the land rights of the owners; and for the matters
connected therewith or incidental thereto; it is hereby enacted in the Sixty -eighth Year of the Republic
of India as follows :—
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement. — (1) This Act may be called the Maharashtra
Agricultural Land Leasing Act, 2017.
(2) It shall extend to the whole of the State of Maharashtra.
(3) It shall come into force on such 2date as the State Government may, by notification published
in the Official Gazette, appoint.
2. Definitions.— In this Act, unless the context otherwise requires,—
(a) “agricultural land” means the land which is used or is capable of being used for the
agriculture and allied activities including fallow land;
(b) “Agricultural Year” means the year commencing on the 1 st August and ending on the
31st July, or such other year as specified by the State Government, by notification published in the
Official Gazette;
(c) “agriculture and allied activities ” means raising of crops including food and non -food
crops, fodder or grass, fruits and vegetables, flowers, any other horticultural crops and plantation,
animal husbandry and dairy, poultry farming, stock breeding , fishery, agro forestry,
agro-processing and other related activities by farmers and farmer groups;
(d) “Competent Authority” means the Tahsildar or such revenue officer of equal rank, as
may be notified by the State Government under section 8;
1 For Statement of Objects and Reasons of the L. A. Bill No. XXXI of 2017 , see Maharashtra Government Gazette, 2023,
Extraordinary No. 29, Part V-A, dated the 7th April 2017, pages 6-7.
2 This Act came into force by Government Notification, R & FD, No. Jamin – 2023/C.R. 241/ J-1, dated 2nd January 2025,
with effect from 1st January 2025.
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(e) “farmer” means a person who owns and cultivates land himself or herself and includes a
person who may or may not own land but cultivates land by leasing in from others;
(f) “farmer groups” includes self -help groups, joint liability groups, Farm Producers
Organizations (F.P.O.s) and the like;
(g) “Government” means the Government of Maharashtra;
(h) “lease” means a contract between the Land Owner – Lessor and the Lessee Cultivator by
which the Land Owner – Lessor conveys use of his agricultural land to the Lessee Cultivator for
agriculture and allied activities for a specified period for a consideration, based on an agreement
with terms and conditions mutually agreed upon by the Land Owner – Lessor and the Lessee
Cultivator;
(i) “Leasing in” means the use of agricultural land by a Lessee Cultivator under lease for a
consideration which could be in cash or kind or share of produce;
(j) “Leasing out” means transfer of la nd under lease by a Land Owner – Lessor to a Lessee
Cultivator for an agreed lease period for a consideration which could be in cash or kind or share
of produce;
(k) “Lessee Cultivator” means a person who leases in agricultural land for the purpose of
agriculture and allied activities against a consideration in cash or kind or a share of prod uce,
payable to the Land Owner – Lessor as per the lease agreement;
(l) “Land Owner – Lessor” means a person who owns agricultural land and has leased out
such land to a Lessee Cultivator, under mutually agreed terms and conditions;
(m) “prescribed” means prescribed by rules made under this Act.
CHAPTER II
LAND LEASE – AGREEMENT, TERMINATION, RIGHTS AND RESPONSIBILITIES
3. Agricultural land leasing under this Act. — (1) Notwithstanding anything contained in any
other law, on and from the commencement of this Act, every person who is competent to transfer
agricultural land under section 7 of the Transfer of Property Act, 1882 (4 of 1882) and who intends to
lease in or lease out agricultural land for agriculture and allied activities shall be entitled to enter into a
lease agreement, consistent with the provisions of this Act:
Provided that, for Leasing out any land held by a person belonging to the Scheduled Tribes, prior
permission of the Collector under section 36A of the Maharashtra Land Revenue Code , 1966
(Mah. XLI of 1966) shall be necessary and no such permission shall be given unless the person
Leasing in such land also belongs to the Scheduled Tribes.
(2) The lease shall be between the Land Owner – Lessor who leases out his land and the Lessee
Cultivator who leases in such land for agriculture and allied activities.
(3) The leasing in of agricultural land in the Scheduled Areas shall be only by the person
belonging to Scheduled Tribes or any other person permitted by the laws in force in Scheduled Areas.
(4) The Land Owner – Lessor and the Lessee Cultivator shall be required to enter into a written
lease agreement with mutually agreed terms and conditions which shall be required to be duly
registered as per the provisions of the Registration Act, 1908 (XVI of 1908).
(5) The lease agreement shall inter alia contain the following details, terms and conditions,
namely :––
(a) the names of the Land Owner – Lessor and Lessee Cultivator;
(b) survey number, boundaries, location and area of the land being leased out;
(c) the duration of lease, expressed in months or years, clearly indicating the starting and
ending dates of the lease, which should, as far as practicable, be compatible with the crop cycle or
Agricultural Year;
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(d) the lease rent or consideration payable by the Lessee – Cultivator and the due date on
which such amount shall be payable by the Lessee Cultivator;
(e) the terms and conditions for renewal or extension of lease, if any;
(f) any major default which shall make the lease liable for termination;
(g) the circumstances in which land ma y be resumed by the Land Owner – Lessor and
methodology therefor;
(h) the minimum period during which such resumption of land by the Land Owner – Lessor
shall not be permissible;
(i) any other mutually agreed provision, consistent with the provisions of this Act.
(6) The duration of lease shall be decided and mutuall y agreed upon by the Land Owner – Lessor
and the Lessee Cultivator and any period of lease as per the lease agreement executed under this Act
shall not create any protected tenancy right in favour of the Lessee Cultivator.
(7) The consideration payable by the Lessee – Cultivator for use of land leas ed under this Act in
the form of lease rent, or share of produce or in any other form shall be decided and mutually agreed
upon by the Land Owner – Lessor and the Lessee Cultivator.
(8) The lease agreement under this Act shall not be entered into the recor d of rights, but the
information regarding lease agreement under this Act shall be entered in a Register, maintained by the
Competent Authority in such form as may be prescribed.
(9) A lease agreement under this Act, even though registered under the Regis tration Act, 1908
(XVI of 1908) shall not create or confer any right over land including protected tenancy or occupancy
right or any other right against lawful eviction or lease termination or interest in favour of the Lessee
Cultivator other than those contained in this Act or the leas e agreement and shall not be used to
establish any permanent right over the land in any court of law.
(10) The possession of the land leased out under this Act shall be deemed to have reverted to the
Land Owner – Lessor upon the expiry of agreed lease per iod, unless the lease is renewed by a fresh
written lease agreement which is registered by following the provisions of this section for a period
mutually agreed upon by the Land Owner – Lessor and the Lessee Cultivator.
(11) Any dispute between the Lessee Cultivator and the Land Owner – Lessor shall be resolved
through the dispute resolution mechanism provided under section 9 of this Act.
4. Rights and responsibilities of Land Owner - Lessor.— The Land Owner – Lessor,––
(a) shall put the Lessee Cultivator in possession of the leased out land on the first day of the
lease and shall not interfere with the Lessee Cultivator’s use and possession thereof so long as the
Lessee Cultivator,—
(i) does not default in the payment of lease amount;
(ii) does not cause damage to the health of the soil;
(iii) does not use the land for purposes other than what is agreed upon in the lease
agreement; or
(iv) does not sub-lease the land to any other person;
(b) shall have right to receive the agreed lease c onsideration in the form of lease rent or
fixed cash or share of produce from the Lessee Cultivator as per the agreed time schedule as per
the lease agreement;
(c) shall be entitled to automatic resumption of the land without any encumbrances on the
expiry of the lease period as initially agreed upon or as extended with mu tual consent and the
Land Owner – Lessor shall not be liable for discharge of any charge or interest or liability created
by the Lessee Cultivator during the lease period;
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(d) shall have the right to resume the leased out land during the subsistence of lease if and
only if the written lease agreement so provides, with prior written notice to the Lessee Cultivator,
as mutually agreed upon;
(e) shall have the right to terminate the lease i f the Lessee Cultivator commits any of the
defaults set out under clause (a);
(f) shall have the right to alienate the leased out agricultural land including by way of a sale,
gift, mortgage, etc. during the currency of the agreed lease period, subject to the condition that
such transfer shall not affect in any manner the Lessee Cultivator’s agricultural right to cultivate
the land until the expiry of the agreed lease period;
(g) shall pay all applicable taxes and cess on the land;
(h) shall, during the term of the lease agreement, not create any hindrance in the works
being done by the Lessee Cultivator as per the lease agreement.
5. Rights and responsibilities of Lessee Cultivator.— The Lessee Cultivator,––
(a) shall be entitled to an undisturbed possession and use of the land for the agreed period as
provided for in the lease agreement;
(b) shall not claim any right over the land by virtue of the lease other than those set forth in
this Act or in the lease agreement;
(c) shall not sub-lease or mortgage the land leased in by him;
(d) shall have, notwithstanding anything to the contrary contained in any other law for the
time being in force, no right to create change of any kind on the land under lease agreement other
than the rights granted in the lease agreement;
(e) shall be eligible to raise loans from banks or co -operative societies or other financial
institutions without mortgaging the leased in land, based on the lease agreement. The expected
value of production or returns from leased in land during the lease period may be used as
collateral by credit institutions for advancing loan to a Lessee Cultivator if this is mutually agreed
between the institution and the Lessee Cultivator;
(f) shall, durin g the currency of the lease period, be entitled to obtain crop insurance,
disaster relief or any other benefits or facilities that may be provided to the farmers by the State or
the Central Government, based on the lease agreement;
(g) shall have the right to voluntarily surrender the leased in land after givin g such notice to
the Land Owner – Lessor, as specified in the terms and conditions of the lease agreement;
(h) shall vacate the land leased in by him immediately at the end of the initially agreed t erm
of the lease or the mutually extended period, without any encumbrances created during the lease
period;
(i) shall not have the right to build structures or erect any fixtures on the land without the
express permission of the Land Owner – Lessor;
(j) shall be entitled to compensation for the improvements or fixtures made on the
agricultural land leased in from the Land Owner – Lessor, provided the improvements or fixtures
are consistent with the lease agreement and the lease agreement provides for such compensation.
Explanation.–– Compensation is the residual value of the improvements or developments
made on the land leased in, at the time of termination or expiry of lease;
(k) shall pay the lease consideration in time, as specified in the lease agreem ent, and any
delay in payment beyond three months from the due date, shall constitute a major de fault,
entitling the Land Owner – Lessor to issue notice for termination of lease;
(l) shall use the land only for agriculture and allied activities, as mentio ned in the lease
agreement;
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(m) shall not cause any damage to the land and shall be liable to the Land Owner – Lessor
for any damage caused to the leased in land and any immovable asset on it;
(n) shall not have any right on the land leased in, other than those specifically set forth in the
lease agreement or in this Act;
(o) shall not sublease the land leased in by him to any other person, and any such act shall
constitute a major def ault, entitling the Land Owner – Lessor to issue notice for termination of
lease;
(p) shall not disturb the boundary of the land and survey stones, if any, during the lease
period.
6. Non -transferability and non-heritability of lease. — (1) Leases under this Act shall not be
heritable and the rights of the Lessee Cultivator granted under the lease shall not be transferable except
as provided in the lease agreement.
(2) In the event of death of Land Owner – Lessor, the Lessee Cultivator shall continue to cultivate
the land leased in for t he remaining lease period, unless the Lessee Cultivator and the heirs of Land
Owner – Lessor agree to end the lease agreement early by mutual consent. In case of land leased out by
multiple Land Owners – Lessors, as long as one of the original Land Owners is alive, the lease
agreement shall stand.
(3) If there is single Lessee Cultivator who dies, the land shall revert to the Land Owner – Lessor,
at the end of the cr op year, unless the Land Owner – Lessor and heirs of such deceased Lessee
Cultivator mutually agree to continue the lease. In case the Lessee Cultivator has included the name(s)
of his or her son(s) or daughter(s) as a co -Lessee in the lease agreement, the surviving co -Lessee shall
be entitled to continue the lease for the remaining lease period or any mutually agreed extended lease
period.
7. Termination of lease.— The lease executed under this Act shall be terminated,––
(a) on expiry of the agreed lease period;
(b) if the Lessee Cultivator fails to pay the lease consideration as per the agreed terms and as
per the agreed time schedule;
(c) if the Lessee Cultivator uses the land for the purposes other than agriculture and allied
activities or those specified in the lease agreement;
(d) if the Lessee Cultivator sub-leases the leased in land;
(e) if there is any damage caused to the land by the Lessee Cultivator;
(f) if the Land Owner – Lessor and Lessee Cultivator mutually agree to terminate the lease;
(g) if the Lessee Cultivator dies during the lease period, in which case the termination of
lease shall be subject to the provisions under section 6 of this Act;
(h) when the Lessee Cultivator voluntarily surrenders the land during the lease period, under
provisions of clause (f) of section 5 of this Act; or
(i) if the Lessee Cultivator is adjudicated as undischarged insolvent or of unsound mind.
CHAPTER III
ENFORCEMENT OF LEASE AGREEMENT AND DISPUTE RESOLUTION
8. Enforcement of lease agreement. — The Government shall notify the Competent Authority
which shall be responsible for the following, namely :––
(a) enforcement of terms of lease;
(b) facilitating return of the lea sed out land to the Land Owner – Lessor on expiry of the
lease period.
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9. Dispute resolution.— (1) The Lessee Cultivator and the Land Owner – Lessor shall make all
efforts to amicably settle any dispute between them arising out of lease agreement under this Act, using
third party mediation whenever feasible.
(2) If the dispute is not settled through the mechanism mentioned in sub -section (1), either party
may file a petition before the Competent Authority, which shall adjudicate the dispute using summary
procedure within a maximum period of three months.
(3) For every order other than interim order passed by the Competent Authority under this Act, an
appeal shall lie to the Collector.
(4) An appeal against the order of the Collector shall lie to the Maharashtra Revenue Tribunal
which shall be the final authority to adjudicate disputes, under this Act.
(5) Any appeal preferred to the Collect or or the Maharashtra Revenue Tribunal under this Act
shall be disposed of within a maximum period of one year.
(6) During the pendency of dispute between the Land Owner – Lessor and the Lessee Cultivator,
the Competent Authority or the Collector or the Maharashtra Revenue Tribunal, may pass such interim
order for compliance of the conditions of the lease agreement as he or it deems appropriate:
Provided that, he or it shall not pass any such order, as shall allow Lessee Cultivator to remain in
possession of land even after the expiry or termination of lease agreement.
(7) If any stay order is passed then on the expiry of the term of lease agreement, such stay order
shall automatically cease to operate and the Land Owner – Lessor shall be given possession of the land
compulsorily.
10. Breach of agreement. — On receiving an application from aparty aggrieved by the
non-compliance or violation of any condition of lease agreement under this Act, or breach of such
agreement, the Competent Authority by issuing show cause notice, require the other party, to
immediately stop such violation or breach and comply with the lease a greement and to personally
furnish a compliance report in this regard or else show cause as to why such fine at a maximum rate of
fifty thousand per hectare as the Competent Authority may specify should not be imposed on such
party. After considering the r eply to the show cause notice and the evidence on affidavit, and after
hearing both the parties, the Competent Authority may pass appropriate order for ensuring compliance
of the lease agreement and the case shall be disposed of after ascertaining the comp liance of
such order:
Provided that, if the Competent Authority is satisfied that the compliance of the lease agreement
is not possible, then he shall order termination of the agreement and determine the claims of both the
parties and may imposed fine up to a maximum rate of rupees fifty thousand per hectare, the party
responsible for breach of agreement, which shall be recoverable as an arrears of land revenue:
Provided further that, the State Government shall be competent to prescribe higher limit for t he
maximum rate of fine that can be imposed under this section, by making rules in this regard.
11. Reinstatement of Land Owner – Lessor.— (1) On expiry of term, or termination of lease
agreement, if the land Lessee Cultivator does not vacate the possessi on of land under lease agreement,
directly or indirectly, then on application of the Land Owner – Lessor, the Competent Authority shall
within seven days, issue notice to the Lessee Cultivator, directing him to hand over possessio n of the
land to the Land Owner – Lessor within 15 days from the date of service of notice to the
Lessee – Cultivator.
(2) If even after service of show cause notice as aforesaid, the Lessee Cultivator does not hand
over vacant possession of the land to the Land Owner – Lessor within the time specified in such notice,
the Competent Authority shall, within 30 days from the date of receipt of application from the Land
Owner-Lessor, under sub -section ( 1), secure actual possession of land by using reasonable force, as
may be necessary, and hand over the same to the Land Owner – Lessor.
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12. Bar of jurisdiction of Civil Courts. — (1) No decision made or order passed or proceeding
taken by any officer or authority or the State Government under this Act, not being a decision, order or
proceeding affecting the title to the land of a person, shall be called in question before a Civil Court in
any suit, application or other proceeding and no injunction shall be granted by any court in respect of
any proceeding taken or about to be taken by such officer or authority or the State Government in
pursuance of any power conferred by or under this Act.
(2) No Civil Court shall have jurisdiction over disputes under this Act.
CHAPTER IV
MISCELLANEOUS
13. Protections for persons acting in good faith. — No suit, prosecution or other legal
proceeding shall lie before any court or authority against any public servant for anything done or
intended to be done in good faith in performance of duty, pursuant to this Act or the rules made
thereunder.
14. Power to make rules. — (1) The State Government may, by notification in the Official
Gazette, and subject to the condition of previous publication, make rules to carry out all or any of the
purposes of this Act.
(2) Every rule made under this section shall be laid as soon as may be after it is made before each
House of the State Legislature while it is in session for a total period of thirty days which may be
comprised in one session or in two or more successive s essions, and if, before the expiry of the session
in which it is so laid or the session immediately following, both Houses agree in making any
modification in the rule or both Houses agree that the rule should not be made, the rule shall, from the
date of publication of notification in the Official Gazette, of such decision have effect only in such
modified form or be o f no effect, as the case may be ; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done or omitted to be done
under that rule.
15. Overriding effect and savings. — (1) The provisions of the Act shall have overriding effect
over the provisions of any other law in force on the subject from the date of its coming into force:
Provided that, any rights accrued, actions taken, cases pending under any other law in force shall
be governed by the provisions of such law:
Provided further that, if an existing lease a greement between the Land Owner – Lessor and the
Lessee Cultivator is sought to be further extended or replaced by a new lease, the provisions of this Act
shall apply.
(2) For the removal of doubts, it is hereby declared that this Act shall not have any retrospective
effect and the existing protected tenants or share crop pers, existing on the date of coming into force of
this Act, under the existing Tenancy laws in the State of Maharashtra shall not be affected by this Act.
16. Power to remove difficulties. — (1) If any difficulty arises in giving effect to the provisions
of this Act, the State Government may, as occasion arises, by order published in the Official Gazette do
anything not inconsistent with the provisions of this Act which appears to it to be necessary or
expedient for the purpose of removing the difficulty:
Provided that, no such order shall be made after the expiry of a period of two years from the date
of commencement of this Act.
(2) Every order made under sub -section ( 1) shall be laid, as soon as may be, after it is made,
before each House of the State Legislature.
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