Occupant Class I, II & III Land in Maharashtra

November 17, 2025

Blog & Articles ,

Read Time:-2 Min

Occupant Class I, II & III Land in Maharashtra

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.

Comments

How to Know Whether Land Is Agricultural or Not in Maharashtra

Khudkasht: Meaning & Relevance in Indian Real Estate

Join The Discussion

Save my name, email, and website in this browser for the next time I comment.

Karnataka Relaxes Agricultural Land Conversion for Small Industries

November 17, 2025

Legal Knowledge Base

Karnataka Relaxes Agricultural Land Conversion for Small Industries

The Karnataka Legislative Assembly has passed a Bill to amend land revenue laws.

Mere Ownership of Agricultural Land Not Enough to Claim Agricultural Income, Rules ITAT

November 17, 2025

Blog & Articles

Mere Ownership of Agricultural Land Not Enough to Claim Agricultural Income, Rules ITAT

(ITAT) The Income Tax Appellate Tribunal , Chennai Bench, has held that simply owning agricultural land is not sufficient to justify claims of agricultural income.