G.O. (Ms) No.277, Amendment to the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Rules, 1962

What the amendment does

G.O. (Ms) No.277 of the Revenue and Disaster Management Department, Land Reforms Wing, changes the rules governing land held with government permission under sections 37-A and 37-B of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961. The government issued the amendments because the rules did not previously provide for partial transfers between companies or between public trusts, even when the land continued to be used for the same permitted purpose.

The notification amends rule 56(3)(ix) for industrial or commercial undertakings and rule 66(2)(vi) for public trusts. It was also directed to be published in the Tamil Nadu Government Gazette.

Who is affected

The amendments apply to:

• Industrial or commercial undertakings permitted by the government to acquire or hold land exceeding the ceiling area under section 37-A.
• Public trusts permitted to acquire or hold land under section 37-B for educational or hospital purposes.
• Group companies, subsidiary companies, other companies or public trusts receiving all or part of such an undertaking, trust or land.

The document does not address ordinary residential land transfers. Its provisions concern land covered by the specified government permissions.

Conditions for industrial or commercial transfers

The amendment to rule 56 permits an industrial or commercial undertaking to be transferred fully or partly, or to transfer part of its lands. For a partial transfer:

• The transferor must have carried on genuine industrial or commercial operations for at least three years.
• Alternatively, the transferor may show a justifiable reason for being unable to carry on the activity for which permission was obtained.
• The transferee must genuinely carry on industrial or commercial operations.
• The transferee cannot claim the purchased surplus area as land within its ceiling area.

Conditions for public trust transfers

The amendment to rule 66 permits a public trust to be transferred fully or partly, or to transfer part of its lands. For a partial transfer:

• The transferor must have carried on genuine educational or hospital activities for at least three years.
• Alternatively, the transferor may have a justifiable reason for being unable to carry on the activity for which permission was obtained.
• The transferee must genuinely carry on educational or hospital activities.

The stated purpose is to enable transfers for the same industrial, commercial, educational or hospital use for which government permission was granted.