Bombay High Court Allows State To Charge Share In Leasehold Profits
When the state government made an insertion and created an amendment in the Maharashtra Land Revenue Code, 1966, in August 2016, real estate developers were among the parties that were terrified. The state added Section 37A in the Code, giving itself the right to charge and recover from lessees the unearned income—the money they earned by transferring lease-holding rights to another person or entity. Under the changed norms, lease-holders could not transfer their lease-holding rights to another party without a prior permission of the state. On May 3, the Bombay High Court allowed the aggrieved realtors great relief while upholding the validity of the amendment.