Section 63 of the Maharashtra Tenancy and Agricultural Lands (MTAL) Act generally bars the transfer (including by way of gift, sale, or exchange) of agricultural land to a non-agriculturist without the prior permission of the Collector. A Section 8 company, unless specifically engaged in actual farming operations and meeting the definition of an "agriculturist" under the Act, would typically be considered a non-agriculturist.

2) 

• Mandatory Non-Agricultural Use: The land must be put to the designated non-agricultural use (e.g., for educational purposes, given your company's objectives) within a period of five years from the date of transfer.

3) Your company can accept the gift because the land is within the limits of a municipal council.

The condition is that you must convert the land to a non-agricultural purposeconsistent with your Section 8 company's objectives (e.g., building a school, hospital, place of worship, etc., as per the approved land use plan) within 5-10 years.

No, your assumption is likely incorrect and carries significant legal risk. Merely being located within the limits of a municipal council does not automatically exempt the transaction from the requirements of the Maharashtra Tenancy and Agricultural Lands Act (MTAL), 1948. Permission from the Collector is almost certainly required, and there is a high probability it would be denied.

1. Permission is Mandatory: Under Section 63(1)(c), you must obtain the "previous sanction of the Collector" to receive the gift. Proceeding without it would render the transaction illegal and void.

2. Permission is Unlikely: Even if you apply, the Collector will scrutinize the application. Since your company's object is not agriculture, the Collector is highly likely to deny permission. The purpose of the MTAL Act is to protect agricultural land for cultivators and prevent its diversion to non-agricultural uses.

3. Location is Not a Guarantee: Do not assume that being within a municipal council automatically makes the land non-agricultural for the purposes of the MTAL Act. You need a lawyer to verify the specific notification status of your area.

4. Other Laws Apply: The Ceiling Act presents a separate and significant legal hurdle that could block the transfer even if you somehow overcome Section 63.

What You Should Do:

• Consult a Local Property Lawyer: This is not a DIY situation. You need a lawyer practicing in Maharashtra with expertise in land revenue and tenancy laws.

• Conduct a Title Verification: Your lawyer will need to verify the current tenure and classification of the land in the 7/12 extract (or property card).

• Verify Notification Status: Your lawyer must check if the specific municipal council has been notified under the relevant provision of the MTAL Act.

• Consider Land Use Conversion: The only safe and legally sound path is likely to apply for the conversion of the land from agricultural to non-agricultural (NA) use under the relevant state laws before attempting to receive the gift. Once the land is officially NA, the restrictions of the MTAL Act and the Ceiling Act would no longer apply.

Section 63(1)(c) of The MTAL act states

“Nothing in this section shall prevent the transfer of agricultural land to a body or institution approved by the State Government for an industrial or educational purpose or for a purpose of public utility.”

So, a transfer to a non-agriculturist (such as a Section 8 company) is permissible only if:

1. The transfer is for an educational, industrial, or public utility purpose, and

2. The body or institution is approved by the State Government for that purpose.

You  may qualify under “educational or public utility purpose”, provided you obtain prior approval from the Collector or State Government however you may have to get the land reclassified as non-agricultural (NA) under the Maharashtra Land Revenue Code.

Subject to the below conditions the same is allowed 

Section 63(1)(c) of the Maharashtra Tenancy and Agricultural Lands Act, 1948 governs the conditions under which agricultural land in Maharashtra may be transferred—by sale, gift, exchange, lease, or otherwise—specifically to non-agriculturists. The Act generally bars such transfers unless permission from the Collector or authorized officer is obtained. The text under Section 63(1)(c) typically states that such a transfer will not be valid without this requisite permission, as a safeguard to prevent indiscriminate conversion of agricultural land and transfer to those not engaged in agriculture.

Dear Client,

Your assumption that a Section 8 company may freely receive a gift of agricultural land in Maharashtra under Section 63(1)(c) of the Maharashtra Tenancy and Agricultural Lands Act, 1948 is not correct. A Section 8 company is not automatically permitted to receive agricultural land, even if it is a charitable, religious, educational, or social-purpose entity. The restriction under Section 63 applies to every transfer of agricultural land, whether by sale, gift, exchange or otherwise, and prohibits transfer to any person or body who is not an agriculturist, unless specific legal conditions are satisfied.

The exception under Section 63(1)(c) does not give a blanket exemption to a Section 8 company. It applies only where the land is transferred to a public charitable or religious trust, and even then, only with the prior written permission of the Collector and only if the land will continue to be used for agricultural purposes. A Section 8 company is not treated as a “public trust” for the purposes of this provision unless it is independently registered under the Bombay Public Trusts Act with the Charity Commissioner. Therefore, merely being a nonprofit company under the Companies Act does not qualify the organisation to hold agricultural land.

If the company accepts the gift without obtaining prior approval of the Collector, the transfer becomes void under Section 84C of the Act, and the land can be taken over by the Government. Even if the Sub-Registrar registers the gift deed, the mutation will be refused and the entry, if made, will later be cancelled. The liability falls both on the donor and the donee.

There are lawful alternatives. The company may first obtain registration as a public trust before the Charity Commissioner and then apply to the Collector for permission under Section 63(1)(c). If the intention is to use the land for construction of a school, hostel, religious building, or any non-agricultural purpose, then the donor must first secure non-agricultural (NA) conversion before the land is gifted, because once the land ceases to be agricultural, Section 63 no longer applies. Another option is to have the land held by individual trustees rather than the company, if those trustees individually qualify under the Act.

If you wish to proceed lawfully, I can help prepare the step-wise compliance plan, including the draft Collector application, a legally compliant gift deed, or an application for NA conversion, depending on the purpose for which the land is being received. Please also confirm whether your company is already registered as a public charitable trust, whether the land is intended to remain agricultural, and whether the donor is an agriculturist in Maharashtra, so that I may advise with complete precision.