Maha: Has a Bill Been Passed to Legally Protect Mortgage Fees on Class-2 Lands?
Synopsis
In a significant legislative move, Maharashtra's Revenue Minister has introduced a bill that aims to provide legal backing for mortgage fees on Class-2 lands. This measure is designed to validate fees collected since 2009, ensuring that landowners can mortgage their properties without legal uncertainties. Learn how this impacts landowners and the state's financial landscape.
Key Takeaways
Legal Protection: The bill offers legal backing for mortgage fees on Class-2 lands.
Retrospective Legitimacy: Fees collected since 2009 are validated.
Amendments Made: Changes to the Land Revenue Code to clarify legal standing.
No Refunds: Previous collections cannot be claimed back due to their legality.
Government Authority: The state can set future mortgage fee rates.
Nagpur, Dec 12 (NationPress) The Revenue Minister Chandrashekhar Bawankule introduced a significant bill in the Legislative Assembly on Friday, aimed at providing legal protection for the mortgage fees imposed when Class-2 land is mortgaged to banks for non-agricultural purposes.
This bill, known as the 'Maharashtra Land Revenue Code (Second Amendment and Legalisation) Bill, 2025', will ensure that the fees collected since 2009 are now deemed legal.
The state government had previously issued an order on February 27, 2009, mandating a mortgage fee on Class-2 lands held for non-agricultural use when mortgaged to banks or financial institutions.
However, a ruling from the Nagpur Bench of the Bombay High Court deemed this provision invalid, stating that the government order lacked a legal basis, as pointed out by the minister.
“This bill aims to eliminate the legal ambiguity caused by the court's decision and amend the Land Revenue Code of 1966 accordingly,” he stated.
The bill is set to be implemented with retrospective effect, validating the mortgage fees assessed on Class-2 lands from February 27, 2009, onward.
Amendments have been made to Section 36 of the 1966 Act to ensure that the mortgage fees collected by government or revenue authorities since 2009 are considered valid. No legal claims may be filed to recover these fees, as collections during this timeframe were previously deemed illegal. This fee will apply if Class-2 occupants mortgage their land with cooperative societies, the State Bank of India, or similar financial institutions for non-agricultural purposes.
The state government will hold the authority to determine mortgage fee rates, which will be established through general or special orders.
Minister Bawankule emphasized that this bill is necessary to provide legal assurance for amounts already collected and to facilitate further collections without imposing additional burdens on the state's finances.
Point of View
This legislative move by the Maharashtra government seeks to address legal uncertainties surrounding mortgage fees, providing necessary protections for landowners while ensuring that the state's financial stability is not compromised. It reflects an effort to balance legal frameworks with economic realities.
NationPress
12 May 2026
Frequently Asked Questions
What is the purpose of the Maharashtra Land Revenue Code (Second Amendment and Legalisation) Bill, 2025?
The bill aims to provide legal protection for mortgage fees on Class-2 lands and validate fees collected since 2009.
How will this bill impact the mortgage fees collected since 2009?
The bill will make the mortgage fees collected from February 27, 2009, legal, eliminating any claims for refunds.
What changes does this bill make to the Land Revenue Code?
It amends Section 36 of the 1966 Act to validate the mortgage fees collected and to allow the state government to set future rates.
Who will be affected by this new bill?
Class-2 landowners who mortgage their properties for non-agricultural purposes will be directly affected by this legislation.
What powers does the state government have under this bill?
The state government will have the authority to determine and set the rates for mortgage charges through general or special orders.
