Occupant Class I, II & III Land in Maharashtra

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1. What is an Occupant?

  • A person who legally holds and uses government land (unalienated land).
  • Not a tenant, not a trespasser, not a temporary user.
  • The Maharashtra Land Revenue Code (MLRC 1966) divides such landholders into classes.

Class I, Class II and Class III (Government Lessee)

2. Occupant – Class I

  • Full rights over the land.
  • Can sell, gift, transfer or mortgage the land without restrictions (in most cases).
  • Land is almost like freehold land.
  • Land is highly valuable and easy to transfer.
  • People who had strong land rights before 1966 usually fall in this class.

3. Occupant – Class II

  • Have land in perpetuity (permanent), but with restrictions.
  • Cannot sell or transfer land freely.
  • They need Collector / Government permission for any sale or transfer.
  • If they transfer without permission, the land can go back to the government.
  • Land value is lower due to restrictions.
  • Some older leaseholders (long-term leases) also fall under this class.

4. Class II Land Conversion (Upgradation to Class I)

  • Class II land can be changed to Class I by applying to the Collector.
  • Requires paying a premium (a fee decided by the government).
  • After conversion, the land becomes fully transferable and more valuable.

5. Occupant Class III (Government Lessee)

(Commonly known as Class III, although legally called Government Lessee)

  • This land is leased by the government to a person or institution.
  • You do not own the land — you only have the right to use it.
  • Very strict rules and almost no right to sell or transfer.
  • Mostly given for special purposes like:
  • School, hospital, public use land
  • Temple or religious land (Devsthan Inam)
  • Old service-related grants (Saranjam)
  • Banks usually do not give loans on such land.
  • Market value is very low because it cannot be sold freely.

6. Why Understanding These Classes is Important

  • Helps you know whether you can buy or sell the land.
  • Helps you understand whether you can get a loan on the land.
  • Helps avoid legal problems if land has restrictions.
  • Helps you plan construction, development, or investment safely.

7. How to Check the Land Class

  • Check the 7/12 extract or land documents.
  • Ask at the Talathi office, Tehsildar office or Collector office.
  • A property lawyer can confirm the land class easily.

8. Summary

  • Class I = Full rights, free to sell, best for investment.
  • Class II = Restricted rights, need government permission to sell.
  • Class III (Government Lessee) = No ownership, cannot sell, very restricted.


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