Grant of Permission to Industrial / Commercial undertakings
How To Apply For Exemption From Land Ceiling Act
Application u/s.37-A
Industrial or commercial undertaking is entitled to hold only 15.000 standard acres. However, the Government is granting permission to industrial or commercial undertakings to acquire or to hold the lands acquired in excess of the ceiling area if they bonafide carries on any industrial or commercial operation under Section 37-A of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act.
For that, they should apply to the Government in Form 36 within 180 days from the date of amended rules or within 180 days from the date of purchase of such land.
Process of application
The Government have forwarded the applications to the Commissioner of Land Reforms and the Commissioner of Land Reforms in turn forward the application to the concerned District Revenue Officer/s. The District Revenue Officer then forward the application to the respective Revenue Divisional Officers for field report. The Revenue Divisional Officer conducts field inspection and enquiry in respect of the lands held by the company obtain the required documents and prepare the report with the assistance of concerned Tahsildars and field staff submit the report to DRO. The DRO after consolidating the report of the RDOs, conduct inspection and enquiry and send his report to CLR.
Process in Head Office
On receipt of report from DRO, Agenda is prepared and place the case before the Industrial Exemption Committee (IEC) headed by Chairman / CLR and members reconstituted as per G.O.Ms.No.337, Revenue and D.M. Dept., dated 6.7.2020. The IEC, after due deliberations will decide to recommend or reject the request of the company. Accordingly, Minutes of IEC will be sent to Government.
“As of now, the present procedure of making application in Form 36 for grant of permission u/s 37-A of the Tamil Nadu Land Reforms (Fixation of Ceiling on
Land) Act as amended, to industrial or commercial undertakings, is made Online.”
we will help you to apply online for grant of permission under section 37-A of the Act.
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Orders of Government
The Government may grant the permission for the whole or part of the land specified in the application of the company, subject to such conditions as they deem fit or refuse to grant such permission and issue orders accordingly.
Violation of conditions
If any industry acquired land after the notified date of the Act 17/70 (i.e., 2.10.1970) and if those lands not covered by permission under section 37-A and also the lands permitted by Government subsequently rejected by Government for violation of conditions, etc., as a penalty for contravention of provisions of section 7, be deemed to have been transferred to the Government with effect from the date of such transfer under section 20 of the Act.
Transfer of undertaking
As per Rule 56(3)(ix) of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Rules, 1962, if, at any time, the industrial or commercial undertaking is transferred, the transferor and the transferee shall, within thirty days from the date of such transfer, intimate the fact of transfer to the Government and the Government after making enquiry as they deem fit pass an order directing that the permission already granted to the transferor shall operate in favour of the transferee on the same terms and conditions subject to which the permission was granted to the transferor, with effect from the date of the transfer for the unexpired period of the permission or cancel the permission, after giving to the transferee, an opportunity of being heard.
Part transfer of undertaking
The Government in G.O.Ms.No.277, Revenue and Disaster Management Department, dated 31.7.2018, have notified in the TNGG No.32, dated 8.8.2018, made an amendment to Rule 56 (3) (ix) of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Rules, 1962 facilitating the industrial or commercial undertaking for transfer of land partly.
The transferor should have carried on bonafide industrial or commercial operation for a minimum period of three years, or for a justifiable reason, been unable to carry on the industrial or commercial operation for which permission was sought for. The transferee bonafide carries on industrial or commercial operations. The transferee is barred from claiming the extent of surplus area purchased as within ceiling area.
Ceiling area as 30 Std. Acres
As per the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Amendment Act, 2018 (Tamil Nadu Act No.24 of 2018) published in the TNGG (Extraordinary) No.249, dated 12.7.2018, the ceiling area in the case of every industrial or commercial undertaking, which invests more than twenty crores of rupees, if all are dry land shall be thirty standard acres. The above amendment Act was came into force with effect from 28.10.2020 (Published in TNGG (Extraordinary) No.445, dated 28.10.2020).
The Government in Lr.No.28232/LR.1(2)/2018-4, Revenue & D.M. Dept., dated 12.1.2021, the Government have informed that it is considered that no more amendment to rule is necessary at this juncture and the lands should be classified as dry land, the industrial or commercial undertaking should invest at least 20 crores of rupees and utilize the land for industrial / commercial purpose within a period of 3 years, from the date of acquisition of the 30 standard acres.
Mortgage of land
Regarding mortgage issue, the Government have ordered to consider the applications requesting grant of permission u/s.37-A of the Act, after obtaining an undertaking from the company or No Objection Certificate from the concerned Bank, in order to foster ease of doing business and give fillip to industrial and commercial activity in the State, vide G.O. Ms.No.425, Revenue & Disaster Management Department, dated 18.8.2020.
Seller attracted
In some cases the purchaser company purchased lands from the company which held excess land, but not applied for grant of permission u/s.37-A of the Act or applied for permission, but under process. Hence the seller company attracted under Land Reforms Act and the excess lands held by the company deemed to have been transferred to Government, resulting rejection of grant of permission u/s.37-A of the Act. Therefore, the Government have carefully examined the above issue and in order to foster ease of doing business ordered to consider the applications requesting grant of permission u/s.37-A of the Act, on merits and seller attracted issue will not be a bar to consider an application, G.O.(Ms) No.596, Revenue & Disaster Management Department, dated 24.10.2020