The Tamil Nadu government has relaxed the land ceiling limit, allowing companies to possess 120 acres of dry land and 60 acres of wetland without any permission.

Holders of excess land can now get a ‘37-A permission’ with the removal of ‘seller-attracted’ issues. This is to ease the compliance burden for industries, said a senior government official. Many companies, particularly in the renewable energy sector, had sought this, said another.

The Industrial Exemption Committee has not been recommending grant of permission for ‘seller-attracted’ land. The Industry Department felt that Section 20 of the Land Reforms Act should not be enforced on industrial units when the seller from whom they bought the land held parcels beyond the ceiling but no declaration was made by the authorised officer of the land.

In the present economic scenario, such regularisation of transfer of land covered under Section 37-A without any loss to the government is imperative. In cases where the industrial undertaking has applied for permission under 37-A to hold surplus land, and no declaration was made by the authorised officer, as contemplated under Section 20 of the Act, the State government will have to first consider the application for permission to hold the land for industrial purpose on merits, and thus seller-attracted issues will not be a bar to consider an application. It is only if such permission is refused that the authorised officer can pass orders for transfer of the land to the government, says a Government Order. Further, while declaring the surplus land, provision of the Act and Rules will prevail, the order said.

“It’s a win-win step. These old ceiling laws should not have been there. With this, more manufacturing units will be attracted and improve lives of people and also generate revenues for the government,” said T Padam Dugar, President, CREDAI-Chennai Chapter.

Industries can buy land at economical prices and don’t have to go through long processes, said M Murali, CMD, Shriram Properties.

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