State Act

The Saurashtra Gharkhed, Tenancy Settlement and Agricultural Lands Ordinance, 1949

5[55. (1) Nothing in section 54 shall prohibit the sale or the agreement for the sale of land for which no permission is required under sub-section (1) of section 65B of the Bombay Land Revenue Code, 1879 in favour of any person for use of such land by such person for a bonafide industrial purpose: Provided that— (a) the land is not situated within the urban agglomeration as defined in clause (n) of section 2 of the Urban Land (Ceiling and Regulation) Act 1976. (b) where the area of the land proposed to be sold exceeds ten hectares, the person to whom the land is proposed to be sold in pursuance of this sub-seciton shall obtain previous permission of the Industries Commissioner, Gujarat State or such other officer, as the State Government may, by an order in writing authorise in this behalf. (c) the area of land proposed to be sold shall not exceed four times the area on which construction for a bonafide industrial purpose is proposed to be made by the purchaser: Provided that any additional land which may be required for pollution control measures or required under any relevant law for the time being in force and certified as such by the relevant authority under that law shall not be taken into account for the purpose of computing four times the area. (d) where the land proposed to be sold is owned by a person belonging to the Scheduled Tribe, the sale shall be subject to the provisions of section 73AA of the Bombay Land Revenue Code, 1879. (2) (a) Where the land is sold to a person in pursuance of sub-section (1) (hereinafter refferred to as “the purchaser”), he shall within thirty days from the date of the purchase of the land for a bonafide industrial purpose, send a notice of such purchase in such form alongwith such other particulars as may be prescribed, to the Collector and endorse a copy thereof to the Mamlatdar. 1 [(aa) Where the purchaser fails to send the notice and other particulars to the Collector under clause (a) within the period specified therein, he shall be liable to pay in addition to the non-agricultural assessment leviable under this Act, after one month from the date of such purchase, such fine of one per cent. of the prevailing jantri every month, as the Collector may, subject to rules made under this Act, direct]; 2[(b) the purchaser to whom a certificate is issued under sub-clause (i) of clause (c) of sub-section (3) shall commence production of goods or providing of services within five years from such date of certificate: Provided that the period of five years may, on an application made by the purchaser in that behalf be extended by two years by the Collector as it may by an order in writing in such circumstances as may be prescribed: Provided further that the Collector shall not extend such period for more than a period of one year at a time: 3[Provided also that such aggregate period of seven years may, on application made by the purchaser in that behalf and on payment of 20 per cent. of the prevailing jantri value, be extended by another three years by the State Government and thereafter, be extended by the State Government for time to time for further periods on payment of 20 per cent. of the prevailing jantri for every three years.]] (c) Where, on receipt of the notice of the date of purchase for the use of land for a bonafide industrial purpose and other particulars sent by the purchaser under clause (a), the Collector, after making such inquiry as he deems fit— (i) is satisfied that the purchaser of such land has validly purchased the land for a bonafide industrial purpose in conformity with the provisions of sub-section (1), he shall issue a certificate to that effect to the purchaser in such form and within such time as may be prescribed. (ii) is not so satisfied, he shall, after giving the purchaser an opportunity of being heard, refuse to issue such certificate and on such refusal, the sale of land to the purchaser shall be deemed to be in contravention of section 54. (d) (i) The purchaser aggrieved by the refusal to issue a certificate by the Collector under sub-clause (ii) of clause (c) may file an appeal to the State Government or such officer, as it may, by an order in writing, authorise in this behalf. (ii) The State Government or the authorised officer, shall, after giving the appellant an opportunity of being heard, pass such order on the appeal as it or he deems fit. (3) (a) The purchaser shall comply with the provisions of any law for the time being in force or any order or direction of the Central Government or State Government or any Corporation owned or controlled by such Government, Government Company, local authority or statutory authority in relation to use of land for industrial purpose before the land is put to use for such purpose. (b) The purchaser to whom a certificate is issued under sub clause (i) of clause (c) of sub-section (2) shall commence industrial activity on such land within three years from the date of certificate and commence production of goods or providing of services within five years from such date: Provided that the period of three years or, as the case may be five years may, on an application made by the purchaser in that behalf, be extended from time to time, by the State Government or such officer, as it may, by an order in writing, authorise in this behalf, in such circumstances as may be prescribed: 1[Provided further that where the land is sold to a purchaser which is a company as defined by clause (20) of section 2 of the Companies Act, 2013, it may offer the equity shares of the company, to the person by whom such land is being sold, in lieu of the sale price of such land and if such person is in agreement for accepting such equity shares, either in full or partly, then it shall be incumbent upon such company to allot such equity shares of equivalent amount, either in full or partly, to such person.] 2[(3A) In case where the purchase fails to commence the production of goods or providing of services within three years from the date of certificate issued under sub-clause (ii) of clause (c) of sub-section (2) or thereafter, the Collector may, after an application is made to him in that behalf grant permission by an order for sale or transfer of such land: 3[Provided that such permission shall be granted by the Collector only upon the payment of- (a) 100 per cent. of the prevailing jantri value, if the application is made after a period of three years but before completion of a period of five years from the date of certificate as referred to in sub-clause (i) of clause (c) of sub-section (2); (b) 60 per cent. of the prevailing Jantri value, if the application is made after a period of five years but before the completion of a period of seven years from the date of certificate as referred to in sub-clause (i) of clause (c) of sub-section (2); (c) 30 per cent. of the prevaling jantri value, if the application is made after a period of seven years but before compltion of a period of ten years from the date of certificate as referred to in sub-clause (i) of clause (c) of sub-section (2); (d) 25 per cent. of the prevailing jantri value if the application is made beyond ten years: Provided however that,- (i) such permission for sale of such land shall be granted only for the bonafide industrial purpose and in case the industrial purpose usage is not permissible under the Common General Development Control Regulations, such permission shall be granted only for the purpose of use of such land as per the zone declared in the Common General Development Control Regulations; (ii) clauses (a) to (d) shall not apply in the cases of the land which is purchased for bonafide industrial purpose and which needs to be transferred in the case of merger, amalgamation, joint venture, subsidiary company, group company and associate company, conversion of partnership in the company and vice versa or into limited liability partnership, change in partners but in such cases permission shall be granted after charging of 10 per cent. of the prevailing jantri value; (iii) clauses (a) to (d) shall not apply in the cases of the land which is purchased for bonafide industrial purpose and which needs to be transferred in the case of acquisition of assets of industrial unit under order of Debt Recovery Tribunal/National Company Law Tribunal/ Liquidator/ Financial Institutions auction, subject to the condition that such transfer is ordered by such Court/Authority but in such cases the purchaser shall apply for permission within 60 days from the date of transfer of assets by authority and such permission shall be granted after charging of 10 per cent. of the prevailing jantri value;] (iv) if any bonafide industrial user fails to take such permission within a period as specified in clause (iii) above, the Collector shall grant permission by charging of 20 Per cent. of the prevailing jantri value.] (3B) Notwithstanding anything contained in sub-section (3) or sub-section (3A),— (i) where the land is sold to a person in pursuance of sub-section (1) for the purpose of establishing an industrial park in consonance with the policy and conditions of the State Government in that behalf, the purchaser shall fulfill all the conditions in such manner and within such period as may be prescribed; (ii) the purchaser shall be required to obtain certificate/certificates from the Industries Commissioner, Gujarat State, in the manner as may be prescribed of having fulfill the conditions as referred to in clause (i); 1[(ii-a) the purchaser shall commence production of goods or providing of services on the land purchased by him within such period with effect from the date of grant of issue of certificate by the Industries Commissioner, Gujarat State or the Collector, whichever is later, for establishing industrial park under the policy of the State Government for Industrial Parks as the State Government may, by notification in the Official Gazette, specify; (ii-b) after successfully commissioning of production of goods or providing of services to the satisfaction of the Collector, for a period of three years from the date of approval for putting land to bonafide industrial use or establishing industrial park, the restrictions of this section shall not apply.] (iii) in case where the purchaser fails to obtain the certificate/certificates as referred to in clause (ii), the provisions of sub-section (4), in so far as vesting of such land or part of such land in case where the purchaser has already transferred any portion or portions of such land, in the State Government and disposal of such land are concerned, shall mutatis mutandis apply; (iv) the purchaser shall be entitled to transfer or sell portion of such land to any person for establishing an industry thereon subject to the provisions of the policy of the State Government with regard to the industrial park; (v) the transferee under clause (iv) or any person to whom such land may be transferred in any subsequent transaction or transactions shall be entitled to sell or transfer such portion of land to any person for the purpose as provided in clause (iv); 1[(vi) the purchaser shall not be entitled to sale or transfer the land for the first three years from the date of grant of approval for establishing industrial park and in case where the purchaser is of the view, after a period of three years from the date of purchase of such land, that it is not possible for him to fulfill the condition and obtain the certificate/certificates as referred to in this section, he may make an application to the Collector for grant of permission to sale or transfer of such land for other bonafide industrial purpose and the Collector shall there upon grant such permission to sale only upon payment of,– (a) 100 per cent. of the prevailing jantri value, if the application is made after a period of three years but before completion of a period of five years from the date of certificate as referred to in sub-clause (i) of clause (c) of sub-section (3) or, as the case may be, the certificate as referred to in clause (ii-a) of sub-section (3B); (b) 60 per cent. of the prevailing jantri value, if the application is made after a period of five years but before completion of a period of seven years from the date of certificate as referred to in sub-clause (i) of clause (c) of sub-section (3) or, as the case may be, the certificate as referred to in clause (ii-a) of sub-section (3B); (c) 30 per cent. of the prevailing jantri value, if the application is made after a period of seven years but before completion of a period of ten years from the date of certificate as referred to in sub-clause (i) of clause (c) of sub-section (3) or, as the case may be, the certificate as referred to in clause (ii-a) of sub-section (3B); (d) 25 per cent. of the prevailing jantri value if the application is made beyond ten years: 2[Provided that,- (i) such permission for sale of such land shall be granted only for the bonafide industrial purpose and in case the indutrial purpose usage is not permissible under the Common General Development Control Regulations, such permission shall be granted only for the purpose of use of such land as per the zone declared in Common General Development Control Regulations; (ii) clauses (a) to (d) shall not apply in the cases of the land which is purchased for bonafide industrial purpose and which needs to be transferred in the case of merger, amalgamation, joint venture, subsidiary company, group company and associate company, conversion of partnership in the company and vice versa or into limited liability partnership, change in partners but in such cases permission shall be granted after charging of 10 per cent. of the prevailing jantri value; (iii) clauses (a) to (d) shall not apply in the cases of the land which is purchased for bonafide industrial purpose and which needs to be transferred in the case of acquisition of assets of industrial unit under order of Debt Recovery Tribunal/National Company Law Tribunal/ Liquidator/ Financial Institutions auction, subject to the condition that such transfer is ordered by such Court/ Authority but in such cases the purchaser shall apply for permission within 60 days from the date of transfer of assets by authority and such permission shall be granted after charging of 10 per cent. of the prevailing jantri value; (iv) if any bonafide industrial user fails to take such permission within a period as specified in clause (iii) above, the Collector shall grant permission by charging of 20 per cent. of the prevailing jantri value. 3[Explanation.—For the purpose of this section, the expession “bonafide industrial purpose” includes and shall always be deemed to have included the establishment of the industrial park.] 1[(4) Where the Collector after making such inquiry as he deems fit and giving the purchaser an opportunity of being heard comes to the conclusion that the purchaser has failed to commence production of goods or providing of services within the period specified in clause (b) of sub-section (3), or the period extended under the provisos to that clause, the land shall vest in the State Government free from all encumbrances on payment to the purchaser of such compensation as the State Government may determine and such land shall be disposed of by the State Government in the manner as may be prescribed.]]