• Factory/Agricultural land in Wada taluka

Our company purchased agricultural land in Wada district in year early 2000s. During the time of purchase the company directors were required to complete due diligence and convert the agricultural land into Non-agricultural land. However, due to negligence the said process was not performed and company developed 2 manufacturing unit on the land.
Additionally, in early 2000s, the company had 4 partners. Over the years 2 of the parts retired and deceased, so company has only 2 surviving partners. Partnership deed is now updated with the remaining partners and the deed also registered at RoF. However, the 7/12 of the land still states that the land is Agricultural and lists all 4 partners name.
Following are questions:
1. How do we change 7/12 of the land to reflect that the most current partners are listed on 7/12?
2. How do we change the status of land from Agriculture to Non-agriculture?

The intent of this exercise is to sell the said property land along with the factory unit to a potential buyer.
Asked 2 months ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

8 Answers

1) Submit an application for a change in record of rights (Ferfar) to the local Talathi office having jurisdiction over Wada district.

 

2) Attach the newly registered partnership deed, Registrar of Firms (RoF) registration certificate showing current partners, and death certificates/retirement releases for the deceased or retired partners. 

3) The Talathi will post a mandatory 30-day public notice. If no objections are raised by legal heirs or third parties, the mutation is certified by the Circle Officer, updating the 7/12 ownership column.

 

4)for BA Access the online Building Plan Management System (BPMS) or local planning authority portal to regularize the factory structures and clear the required one-time conversion premium based on land value slabs.

Ajay Sethi
Advocate, Mumbai
100931 Answers
8243 Consultations

This situation is common with long-held industrial properties in Maharashtra. As you are preparing to sell the property, getting both the ownership mutations and the land conversion regularized is essential because the buyers, banks, and legal auditors will not complete a sale on a property with un-regularized land use or outdated 7/12 records.

To update the 7/12 records, you may have to approach the land revenue department with an application along with the documents viz., Re-constitution Deed / Revised Partnership Deed, Documents showing the formal retirement of former partners, Certified copies of death certificate of deceased partners, The Form A / Form C issued by the Registrar of Firms reflecting the updated structure.

The Talathi will issue a public/legal notice under Form 135 (Notice of Mutation) to the legal heirs of the deceased/retired partners to verify there are no disputes or unclaimed inheritance rights. Once certified, the names on the 7/12 extract will update to show the current surviving partners (or the Partnership Firm name, depending on how title was originally taken).

As manufacturing units are already built and operating without prior NA permission, this is technically considered an unauthorized Non-Agricultural (NA) use under the Maharashtra Land Revenue Code (MLRC), 1966. You cannot directly apply for standard prospective NA; you must apply for Regularization of Unauthorized NA Use

Apply to the District Collector / Sub-Divisional Officer (SDO) at Palghar (Wada falls under Palghar district) for regularizing the unauthorized industrial use by complying with the procedural formalities. Once approved and fees/penalties are paid, the Collector issues a Regularization Order and a Sanad (NA certificate).Maharashtra allows automatic/deemed NA under Section 44A of MLRC if the land is in a designated Industrial Zone in the Regional Plan (MRTP Act).

Land revenue matters involving old partnership mutations and regularizations require local liaison with the Tahsildar, Circle Officer, and SDO offices in Palghar.

T Kalaiselvan
Advocate, Vellore
91139 Answers
2525 Consultations

Dear Sir/Madam,

First verify whether the land belongs to the partnership firm or to the four partners individually. For updating the 7/12, submit a mutation application to the Talathi/Tahsildar with the registered partnership deeds, retirement deeds, death certificates and succession documents.

For industrial use, obtain regularisation and land-use approval from the competent Revenue and Planning Authorities, including payment of applicable premium, assessment and penalties. Since factories already exist on agricultural land, conduct a complete title and approval audit before executing any sale.

Advocate Saurabh Agrawal

Saurabh Agrawal
Advocate, Greater Noida
270 Answers

Dear Sir/Madam,

It is suggested that you apply for the change of name in 7/12 in the local revenue office. Please give the sufficient reason as to how and why the name of 02 persons should be removed. After this name change is done, you apply for change of status of land from agriculture to non-agriculture and then go for sell to the said potential buyer. Once you approach the local revenue office, you may come to know, all the process and procedure in vogue there.  

Ganesh Singh
Advocate, New Delhi
7357 Answers
16 Consultations

You need to update the records of 7/12 in land revenue extracts 

Prashant Nayak
Advocate, Mumbai
35310 Answers
257 Consultations

Your case involves two separate issues—(i) correction of the revenue records (7/12 extract) to reflect the present ownership/constitution of the partnership, and (ii) regularisation/conversion of agricultural land on which an industrial unit has already been constructed.

  1. Correction of 7/12 Extract: The names in the 7/12 record can be updated by applying for mutation before the jurisdictional Talathi/Tehsildar on the basis of the registered partnership deed, retirement deeds, death certificates of the deceased partners (if applicable), and other supporting documents. If the land is owned by the partnership firm, the revenue records should be brought in conformity with the title documents. The exact procedure may vary depending on how the original sale deed was executed and in whose names the land stands.
  2. Conversion from Agricultural to Non-Agricultural (NA): Since manufacturing units have already been constructed, the matter is not a routine NA conversion. You will have to apply before the Collector/Revenue Authorities under the Maharashtra Land Revenue Code, 1966 and the applicable rules for post facto regularisation/NA permission, if permissible. The authorities may require payment of conversion charges, premium, assessment, and may also impose penalties for unauthorised non-agricultural use. Compliance with zoning regulations, Development Plan, environmental norms, MIDC/local planning authority approvals, factory licence, and building permissions will also have to be examined.

Before negotiating the sale, it is advisable to conduct a complete title and regulatory due diligence. A prospective purchaser will typically insist on:

  • Updated revenue records (7/12 and mutation entries);
  • NA permission or regularisation order;
  • Approved building plans and occupancy/completion documents (where applicable);
  • Factory and pollution control approvals;
  • A search report confirming clear and marketable title.

The feasibility of regularisation depends upon the location of the land, applicable zoning, and the permissions already obtained for the factory. Therefore, all title documents, revenue records, and regulatory approvals should be examined before initiating the mutation and NA conversion process.

Yuganshu Sharma
Advocate, Delhi
1614 Answers
5 Consultations

Dear Client, To update the 7/12 Extract in Maharashtra To reflect only the two surviving partners your company must file a formal mutation entry Application with the local Talati Of the village where the land is located Since two of the original partners have passed away and retired over the years you will need to submit certified copies of the updated and registered partnership deed the Register of firms acknowledgement reflecting the current partners death certificates of the deceased partners and valid retirement or succession documents The Talati Will issue a public notice inviting objections from legal heirs Once no valid objections are raised within the statutory. The circle officer will approve the mutation and the 7/12 Extract who will be updated to display only the names of the two active partners.

Converting the land status from agricultural to non agricultural for industrial use in Wada Require submitting a formal application under the Maharashtra Land Revenue Code to the subdivision officer or the district collector Because manufacturing units were already constructed without prior conviction your company will likely face regularisation proceedings for unauthorised development under the Maharashtra Regional and Town Planning Act. Your application must be backed by structural stability certificates factory licenses layout plans A No Objection Certificate from the Maharashtra Pollution Control Board at and local gram panchayat and clearance of all pending land revenue dues conversion fines and compounding penalties for the last violations.

To successfully sell the property to a potential buyer without legal hurdles it is critically important to complete both the 7/12 update and non agricultural land convergence before executing the final sale deed as corporate buyers and banks will not finance industrial land with agricultural classifications or unauthorized constructions. I hope this answer helps, if you have any further query kindly do not hesitate to contact us. Thankyou

Anik Miu
Advocate, Bangalore
11502 Answers
127 Consultations

1. How to update the 7/12 extract to reflect the current partners' names

Update the 7/12 extract through the Ferfar Nondhi (mutation) procedure under the Maharashtra Land Revenue Code, 1966. File an application before the Talathi (village revenue officer) having jurisdiction over Wada taluka, accompanied by: (i) the registered and updated partnership deed reflecting the two surviving partners; (ii) retirement deeds or release deeds executed by the retired/deceased partners or their legal heirs; (iii) death certificates and succession documents, if applicable; and (iv) identity documents of the current partners.

Applications can be submitted online through the Mahabhumi portal (bhulekh.mahabhumi.gov.in) under the "e-Hakk" section for mutation services, or offline at the Talathi office. After verification and mandatory public notice, the mutation entry is certified and the Record of Rights (RoR) is updated. Mutation fees typically range from ₹500 to ₹2,000. Mutation entries are fiscal records for revenue purposes and do not by themselves confer title, but they are essential for establishing ownership in government records.

2. How to convert the land status from agricultural to non-agricultural

The Maharashtra Land Revenue Code (Second Amendment) Act, 2025, notified on December 31, 2025, fundamentally restructures the conversion regime. The substituted Section 42 eliminates the requirement of prior Collector's permission for conversion from agricultural to non-agricultural use, provided such non-agricultural use is permissible under the draft or final Development Plan or Regional Plan under the MRTP Act, 1966. The grant of development permission or building plan approval by the competent Planning Authority now serves as the sufficient legal authority for effecting lawful conversion of land use.

For your land, which was converted prior to the Amendment Act, a one-time conversion premium is payable instead of the erstwhile annual non-agricultural assessment. If conversion occurred between January 1, 2002 and December 31, 2025, the premium is calculated as per the Annual Statement of Rates (ASR) of the year of conversion. The premium rates are: 0.1% of market value for land up to 1,000 sqm; 0.25% for 1,000–4,000 sqm; and 0.5% for above 4,000 sqm. The Planning Authority must recover this premium before granting development permission. After such approval and premium payment, revenue records are required to be updated to reflect the change in land use.

Critical Note for Sale to a Prospective Buyer

For a marketable sale transaction, the buyer's due diligence will require:

  • Updated 7/12 extract showing the two current partners as recorded owners.

  • Development permission or building plan approval from the Planning Authority, which now serves as the legal basis for non-agricultural use.

  • Receipt of one-time conversion premium paid to the Planning Authority.

It is advisable to complete both the mutation and the conversion regularization before entering into a sale agreement, as these will be critical documents for the buyer's title verification and for registration of the sale deed.

Lalit Saxena
Advocate, Sonbhadra
451 Answers

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer