Leave & License Agreement: No need for Collector's NOC

In a significant ruling, the Bombay HC recently held that permission or a no objection certificate (NOC) would n't be required from the district collector for signing a leave & licence agreement, irrespective of whether it is for residential, commercial or industrial purpose.

This order will have a huge impact on thousands of housing societies situated on collector's land or lease hold or revenue lands.

As per this order, if anyone wants to sign a leave & license agreement to allow a party to use their property (residential, commercial or industrial), then they wouldn't have to go by the lengthy procedure of obtaining an no objection certificate (NOC) from the district collector & also pay the mandatory fees.

The division bench of Chief Justice Pradeep Nandrajog & Justice Bharati Dangre pronounced the ruling while setting aside an order passed by the district collector ordering a Charitable Trust to pay Rs 41 lakh as fees.

This, the collector demanded while relying upon the leave & license agreement between the trust & a private firm, which was allowed (by virtue of the agreement) to use the property of the trust.

The collector cited the provisions of the Maharashtra Land Revenue Code, 1966, while passing these orders.

Having considered the facts of the case, CJ Nandrajog referred to the provisions of the Code which restrict selling, transferring, redeveloping or changing the user of a land parcel. As per the provisions, no one can sell, transfer, redevelop or change the user of a land, without the permission of the govt authority (collector). To obtain such an no objection certificate (NOC),

the laws also provide for a fee, which depends from case to case.

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