The state Cabinet has decided to return the land acquired for industrial purpose from farmers back to the original owner if they have
not started industries in the land during 10 years of stipulated period. However, the new amendment will not be apllied retrospectively and will govern future land deals.
It also means entrepreneurs who have not started industies in land acquired in the last 10 years will not come within the ambit of the decision.
The decision will be applicable for revenue land and MIDC land, confirmed Subhash Desai, state industries minister. According to existing provisions, any person who wants to start an industry can purchase non-agriculture land provided he starts actual production within the period of 15 years from the date of
purchase. “However, it came to the notice of the industry department that several industrialists have not started production and instead some of them changed the ‘purpose’
of land from industrial to residential,” revenue minister Eknath Khadse said.According to an official from the industry department, the Maharashtra Industrial Development Corporation (MIDC) has 90,000 hectares of land in its custody.
Mr Khadse said, “The cabinet has reduced the stipulated period by five years. Entrepreneurs can start actual production within a period of five years from the date of purchase of land.
If he fails to do so, he will be given extension of further five years to start production, on the condition that he would have to pay 2 percent surcharge every year calculated on the cost of land.”
The minister added that if entrepreneurs failed to start the industry within 10 years, government would take away the land and will give it back to its owner (farmers).
“Till date, there has no provision to give back land to farmers and hence the decision is important,” Mr Khadse added.Meanwhile, the decision will not be applicable retrospectively.
Hence, the industry houses that have purchased land from farmers for industry purpose and have failed to start it during the last ten or years, will not be penalised from the new decision.
Mr Khadse confirmed that the state would not take action against such industrialists who failed to start industry in their acquired land in the last 10 years.
The decision would be applicable to those industries that have purchased private land from farmers, he said. These land belong to revenue department, he added.
Mr Desai said, “Revenue and MIDC laws are different and today’s decision is not applicable to industries in MIDC area.”
According to provisions in MIDC law, entrepreneurs have to start industry within two years from allotment of land. They will then have to pay 25 per cent and 50 per cent premium for every
additional two years. Mr Desai, who has stated that more than 16,000 hectares of land is lying unused and were grabbed by industry houses
without starting production, added that notice had been sent to 4,000 industrialists who failed to start industries and more than 1,700 plots have been taken back from them.
