Legal Implications of Real Estate Development on Agricultural Lands

Introduction

India's rapid urbanization and economic growth often clash with the imperative to conserve agricultural lands. This tension underscores the necessity for developers to navigate a complex legal environment comprising various regulations and policies. Balancing economic interests with environmental conservation presents a significant legal challenge, emphasizing the crucial role of compliance with legal requirements in real estate projects. As India progresses, preserving agricultural lands becomes increasingly vital, highlighting the need to align development activities with sustainable land use practices and environmental conservation. Some of the aspects of the same are discussed below.?

Land Use Regulations

In Maharashtra, each Indian state has its unique set of land use laws, primarily governed by zoning regulations. The fragmentation of agricultural lands due to population growth adversely affects productivity, necessitating compliance with legislation such as The Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act, 1947. This act aims to prevent further land fragmentation and promote consolidation to optimize land utilization and enhance agricultural productivity. Adherence to these regulations is crucial to mitigate adverse effects, support agricultural sustainability, and foster balanced regional development in Maharashtra.

Land Acquisition Laws

Acquiring agricultural land for real estate development is subject to stringent regulations. While infrastructure projects are essential for economic growth, acquisitions often displace farmers and necessitate fair compensation and rehabilitation measures. The Land Acquisition, Rehabilitation, and Resettlement Act, 2013 (LARR), effective from January 1, 2014, regulates land acquisition processes in India, ensuring fair compensation and transparency. The Act aims to streamline the land acquisition process by emphasizing consultation with the local government and Gram Sabhas, ensuring transparency and public participation. It focuses on developing crucial infrastructure and urbanization for public benefit. Additionally, it prioritizes fair compensation for landowners, considering economic and social factors, and outlines proper procedures. Furthermore, it introduces provisions for the rehabilitation and resettlement of affected families, a significant addition absent in the previous Land Acquisition Act.

Conversion of Land Use

Converting agricultural land for non-agricultural purposes involves obtaining approvals from local authorities, justification for conversion, and payment of conversion fees, subject to conditions and absence of litigation. The cumbersome process of converting agricultural land for non-agricultural (N.A.) use, previously involving months or years of bureaucratic hurdles, has been significantly streamlined by amendments to Sections 42 to 44 of the Maharashtra Land Revenue Code, 1966 (MLRC). With the enactment of the Maharashtra Land Revenue Code, 1966 (Amendment) Act, 2017, and the Maharashtra Land Revenue Code, 1966 (Amendment) Act, 2018, Sections 42B, 42C, and 42D were introduced, further easing the conversion process.

Environmental Clearance

Construction projects require Environmental Impact Assessment (EIA) and Environmental Clearance (EC) as mandated by the Ministry of Environment & Forests through the 2006 EIA notification from time to time, ensuring compliance with environmental regulations.

Compliance with Building Regulations

Compliance with building regulations in Maharashtra is mandated by the Maharashtra Regional and Town Planning Act, 1966, and the Maharashtra Development Control Regulations, 2034. These regulations encompass various aspects such as land use, permissible construction area, building height, setbacks, parking provisions, fire safety measures, and environmental considerations. Local municipal corporations enforce these regulations to ensure that construction activities adhere to prescribed standards, promoting safety, sustainability, and orderly urban development. Non-compliance can lead to penalties, demolition orders, or legal actions. Therefore, developers, architects, and builders must meticulously adhere to these regulations throughout the planning and execution stages of construction projects.

Conclusion

In navigating these legal complexities, developers must understand the regulatory framework, seek legal counsel, and ensure alignment with environmental sustainability goals. Harmonizing real estate growth with agricultural preservation is essential for India's sustainable development.

By-

Mr. Shreyas Hingmire, Senior Attorney at Vis Legis Law Practice, Advocates