Comparative Analysis of Industrial Land Acquisition Regimes in Gujarat: A Treatise on Section 63AA, Section 89A, and Section 55

Introduction 

The legal architecture governing the acquisition of agricultural land for industrial purposes in the State of Gujarat is a complex tripartite system, a legacy of the region’s diverse political history prior to the formation of the state in 1960. While the Gujarat Land Revenue Code, 1879 provides a unified procedural framework for revenue administration across the state, the substantive rights regarding land tenure, transferability, and tenancy are governed by three distinct legislative instruments: the Gujarat Tenancy and Agricultural Lands Act, 1948 (applicable to the Bombay/mainland area), the Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958 (applicable to Kutch), and the Saurashtra Gharkhed, Tenancy Settlement and Agricultural Lands Ordinance, 1949 (applicable to the Saurashtra peninsula).

This article provides an exhaustive, comparative examination of the specific statutory provisions designed to facilitate industrialization within these agrarian protectionist laws: Section 63AA (Bombay area), Section 89A (Kutch area), and Section 55 (Saurashtra area). It explores the evolution of these sections from rigid exclusionary clauses to dynamic “pay-and-proceed” mechanisms following the landmark amendments of 2015, 2019, 2020, and 2024. The analysis integrates the critical interplay of Section 65/65B of the Bombay Land Revenue Code (BLRC), the financial implications of Old Tenure versus New Tenure land, and the judicial guardrails established by the Supreme Court in Vinodchandra Sakarlal Kapadia v. State of Gujarat and subsequent High Court rulings.

The central thesis of this article is that while the statutory language across the three regions has been harmonized to promote the “Ease of Doing Business,” significant practical divergences remain due to the underlying tenure histories (e.g., the feudal “Giras” systems of Saurashtra versus the Ryotwari systems of British Gujarat) and the varying judicial interpretations of “Bona Fide Industrial Purpose.” In the context of industrial land acquisition in Gujarat, the modern regime has shifted from a regulatory prohibition model to a revenue-generation model, where breaches of industrial use conditions are managed through high-value premiums based on Jantri rates rather than land forfeiture.

Chapter 1: The Historical and Legislative Landscape

To comprehend the nuances of Section 63AA and its equivalents, one must first dissect the historical, geographical, and political strata that necessitated three separate tenancy laws for a single state. The fundamental objective of all three acts was agrarian reform—specifically, the abolition of intermediaries, the protection of tenants, and the enforcement of the “Land to the Tiller” principle. However, the trajectory of industrialization required these rigid agrarian statutes to develop exceptions.

1.1 The Tripartite Legal Geography

1.1.1 The Bombay Area (Mainland Gujarat)

The central and southern districts of Gujarat (Ahmedabad, Vadodara, Surat, Bharuch, Kheda, etc.) were part of the erstwhile Bombay Presidency under British rule. The governing statute here is the Gujarat Tenancy and Agricultural Lands Act, 1948 (originally the Bombay Tenancy Act).

• The Agrarian Bar: Section 63 of this Act establishes the fundamental prohibition: “No sale (including sales in execution of a decree of a Civil Court…), gift, exchange or lease of any land or interest therein… shall be valid in favour of a person who is not an agriculturist”.1
• The Industrial Necessity: As this region formed the industrial corridor of the state (the “Golden Corridor”), the conflict between Section 63 and industrial expansion was felt earliest here, leading to the introduction of Section 63AA as a statutory release valve.1

1.1.2 The Kutch Area

The district of Kutch acts as a distinct legislative unit due to its history as a Part C State and its unique geographical challenges (desert topography, border security). It is governed by the Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958.

• The Agrarian Bar: Section 89 mirrors the Bombay Act’s prohibition.
• The Industrial Necessity: Kutch remained industrially dormant until the 2001 earthquake reconstruction and the subsequent tax holidays. The introduction and amendment of Section 89A became crucial to facilitate massive port-based industries (e.g., Mundra, Kandla) and cement plants.2

1.1.3 The Saurashtra Area

The Saurashtra peninsula (Rajkot, Jamnagar, Bhavnagar, Amreli, Junagadh) was a union of 222 princely states. The agrarian relations here were governed by feudal systems like Giras and Barkhali. Upon integration, the Saurashtra Gharkhed, Tenancy Settlement and Agricultural Lands Ordinance, 1949 was promulgated.

• The Agrarian Bar: Section 54 serves as the prohibition clause, restricting land transfer to non-agriculturists to prevent the re-emergence of feudal landlords. [2]
• The Industrial Necessity: Saurashtra developed a distributed industrial model (engineering in Rajkot, brass in Jamnagar). Section 55 provides the mechanism for industrial exemptions. [3]

1.2 The Evolution of “Bona Fide Industrial Purpose” (BFIP)

Historically, obtaining permission to buy agricultural land for industry was a discretionary bureaucratic process. The industrialist had to apply to the Collector, who would assess the “necessity” and “capability” of the purchaser. This process was opaque and prone to delays.

The paradigm shift occurred when the legislature recognized that requiring prior permission for every transaction was a bottleneck. The concept of “Bona Fide Industrial Purpose” (BFIP) was introduced to allow for a permission-less (or simplified) acquisition regime, provided the land was situated in designated zones or the purchaser adhered to strict post-purchase utilization norms. This evolution is evident in the transition from the discretionary “Certificates” of the early Saurashtra Ordinance to the automatic exemptions linked to the Town Planning Act and Revenue Code in the modern Section 63AA. [4]

1.3 The Unifying Role of the Gujarat Land Revenue Code, 1879

While the Tenancy Acts determine who can hold title to the land (the “Subject” of the right), the Bombay Land Revenue Code, 1879 (BLRC) determines the character and use of the land (the “Object” of the right).

Section 65 (BLRC): Mandates permission for converting agricultural land to Non-Agricultural (NA) use.
Section 65B (BLRC): Introduced to create “Industrial Zones” where the rigorous NA procedure is waived or simplified.

The interplay between the Tenancy Acts (63AA/89A/55) and the Revenue Code (65/65B) forms the crux of the regulatory framework. Any investor seeking industrial land acquisition in Gujarat must navigate both: they must be eligible to buy the land (Tenancy Act) and eligible to build on it (Revenue Code).

Chapter 2: Statutory Framework and Comparative Anatomy of Provisions

For businesses planning industrial land acquisition in Gujarat, understanding the nuanced differences between Sections 63AA, 89A, and 55 is essential.

2.1 Section 63AA: Gujarat Tenancy and Agricultural Lands Act, 1948

Section 63AA acts as a non-obstante clause to Section 63. It states: “Nothing in Section 63 shall prohibit the sale or the agreement for the sale of land… in favour of any person for use of such land by such person for a bona fide industrial purpose”. [1]

2.1.1 The “Automatic” vs. “Permission” Routes

The section creates a dichotomy based on the location of the land relative to Section 65B of the BLRC.

1. Zone A (Notified Industrial Areas):

• If the land is situated in an area where “no permission is required under sub-section (1) of Section 65B of the Bombay Land Revenue Code, 1879,” the purchaser (industrialist) does not need to obtain prior permission from the Collector under the Tenancy Act. [1]
• Implication: This applies to GIDC estates, Special Investment Regions (SIRs), and zones designated “Industrial” in a Final Town Planning Scheme. The exemption is automatic.

1. Zone B (General Agricultural Zones):

• If the land is outside a Section 65B notified zone, the purchaser must obtain a certificate from the Collector.
• The proviso to Section 63AA mandates that the land must not be situated within an “Urban Agglomeration” (a legacy reference to the ULC Act, utilized to protect prime urban green belts). [1]

2.1.2 Area Restrictions and Competent Authorities

The decentralized power structure is defined by the size of the acquisition:

• Up to 10 Hectares: The Collector is the Competent Authority.
• Exceeding 10 Hectares: The purchaser must obtain “Previous Permission” from the Industries Commissioner, Gujarat State.[1] This ensures that large-scale land banking is vetted by the state’s industrial planning body rather than just local revenue officials.

2.1.3 The “Four Times” Formula (Floor-Area Ratio Control)

To prevent industries from acquiring vast tracts of land for speculative purposes under the guise of a small factory, Section 63AA(1)(c) imposes a strict ratio:

• “The area of the land proposed to be sold shall not exceed four times the area on which construction for a bona fide industrial purpose is proposed to be made”. [1]
• Exceptions: Land required for:

• Pollution control measures (ETPs, STP).
• Statutory open spaces required under GDCR or Factory Act.
• Employee housing (if mandatory).
• These excluded areas are not counted in the “4x” limit, allowing for legitimate large-footprint compliance infrastructures. [8]

2.2 Section 89A: Vidarbha Region and Kutch Area Act, 1958

Section 89A provides the equivalent exemption for the Kutch district. While the text has been harmonized with Section 63AA via the 2015 Amendment, the operational context differs.

2.2.1 The “Company” Definition and Equity Shares

The 2015 Amendment introduced a specific proviso to Section 89A (and 63AA/55) regarding corporate purchasers.

• If the purchaser is a “Company” defined under the Companies Act, 2013, it may offer equity shares to the seller (farmer) in lieu of the sale price. [5]
• Objective: This provision was a policy innovation intended to reduce the cash burden on industries and provide farmers with a recurring dividend income/asset appreciation, theoretically reducing post-acquisition litigation. However, in practice, adoption remains low due to the volatility of equity markets and farmers’ preference for upfront liquidity.

2.2.2 Security and Environmental Overlays

While Section 89A provides the tenancy clearance, land in Kutch is subject to stricter external controls:

• Border Zone: Kutch shares a border with Pakistan. Acquisitions near the border often trigger scrutiny from the Ministry of Home Affairs, which is an implicit layer not present in the Bombay Act provisions.
• Ecological Zone: The Wild Ass Sanctuary and CRZ norms often overlay the agricultural lands. As seen in Wildwoods Resorts & Realties Pvt. Ltd. v. State of Gujarat [9], the mere existence of Section 89A permission does not override the need for Wildlife Board clearance. The High Court in this case directed authorities to decide pending applications “forthwith,” acknowledging that administrative delays in these external clearances often cause the industrialist to breach the strict utilization timelines of Section 89A.

2.3 Section 55: Saurashtra Gharkhed Ordinance, 1949

Section 55 governs the Saurashtra region. Historically, this section was more restrictive, reflecting the region’s feudal complexity.

2.3.1 The Certificate of Purchase

Under Section 55(2), the purchaser must:

1. Complete the purchase.
2. Send a notice to the Collector within 30 days of the purchase. [3]
3. The Collector conducts an inquiry to verify the “Bona Fide” nature.
4. If satisfied, the Collector issues a Certificate.
5. If not satisfied, the Collector refuses the certificate, and the sale is deemed in contravention of Section 54, leading to summary eviction. [3]

2.3.2 Harmonization via Amendment

The Gujarat Tenancy and Agricultural Lands Laws (Amendment) Act, 2015 significantly overhauled Section 55 to bring it in line with Section 63AA. It introduced:

• The 10 Hectare threshold for Industries Commissioner approval.
• The 3-Year/5-Year utilization milestones.
• The Equity Share option. [5]

Table 1: Comparative Statutory Matrix

Feature	Section 63AA (Gujarat/Bombay)	Section 89A (Vidarbha/Kutch)	Section 55 (Saurashtra)
Primary Region	Mainland Gujarat (Ahd, Vad, Surat)	Kutch District	Saurashtra (Rajkot, Jamnagar)
Base Prohibition	Section 63	Section 89	Section 54
Zone Exemption	Automatic in Sec 65B Zones	Automatic in Sec 65B Zones	Automatic in Sec 65B Zones
Reporting Time	Within 30 days of purchase	Within 30 days of purchase	Within 30 days of purchase
Authority (<10 Ha)	Collector	Collector	Collector
Authority (>10 Ha)	Industries Commissioner	Industries Commissioner	Industries Commissioner
Use Area Limit	4x Construction Area	4x Construction Area	4x Construction Area
Unique Nuance	Applies to the most urbanized zones; heavy interaction with ULC repeal.	Intersects with Border/CRZ/Wildlife laws heavily.	Originally certificate-based; historical feudal context.

Chapter 3: The Administrative Mechanism: Section 65B and the Revenue Code

The user’s query specifically highlights the interplay with Section 65 BLRC. This is crucial because a valid purchase under the Tenancy Act does not automatically authorize construction.

3.1 Section 65: The Standard Non-Agricultural (NA) Permission

Under the default Section 65 of the BLRC, an occupant must apply to the Collector for permission to change the use of land from agriculture to non-agriculture. [6]

• The Procedure: The applicant submits Form 6, the 7/12 extract, a layout plan, and zoning certificates.
• The Scrutiny: The Collector verifies:

• Title (clear ownership).
• No government dues.
• No breach of New Tenure conditions (unless premium is paid).
• Compliance with Ribbon Development Rules (distance from roads).

• The Timeline: By law, if the Collector does not inform the applicant of a decision within 3 months, the permission is deemed granted. However, in practice, “queries” are raised to reset this clock.

3.2 Section 65B: The Industrial “Fast Track”

Section 65B was inserted into the BLRC to bypass the Section 65 bottleneck for industries. It operates on a “Designated Zone” principle.[7]

3.2.1 Categories of 65B Land

Section 65B applies if the land is:

1. Designated for industrial use in a Draft or Final Development Plan (under the Town Planning Act).
2. Designated for industrial use in a Town Planning Scheme.
3. Situated in an area notified by the State Government in the Official Gazette (e.g., GIDC).

3.2.2 The “Automatic” Use Conditions

If land falls under Section 65B, an industrialist can acquire and use it for bona fide industrial purposes in Gujarat without obtaining prior permission from the Collector, provided they adhere to the distance norms prescribed under the Act/Rules. [7]:

• Ancient Monuments: Not within 2 km of a protected monument (under the 1904 Act or Gujarat Act of 1965).
• Forests: Not within 2 km of a Reserved Forest or Protected Forest (Indian Forest Act, 1927).
• Wildlife: Not within 2 km of a Sanctuary or National Park (Wildlife Protection Act, 1972).
• Chemical Industries: Specific restrictions apply to chemical/petrochemical storage near habitations.

3.2.3 The Notification Procedure

While “permission” is not required, the industrialist must send a Notice of Commencement to the Collector.

• The 21/30 Day Rule: Upon receiving the notice, the Collector has a fixed window (typically 30 days statutory, often 21 days by circular) to raise objections regarding the conditions (e.g., “You are too close to the forest”). If no objection is raised, the use is lawful.[10]
• Penalty: If an occupant uses the land without sending this notice or in breach of the distance norms, they are liable for a fine (Section 66/67) and potentially eviction.

Insight: The linkage between Section 63AA and Section 65B is the most powerful “Ease of Doing Business” tool in Gujarat. By buying land in a Section 65B zone, an industrialist skips two major bureaucratic hurdles: the Tenancy Act permission (via 63AA) and the Revenue Code permission (via 65B).

Chapter 4: The Economics of Land Tenure: Old vs. New Tenure

A critical practical component of the report is the distinction between Old Tenure (Juna Sharat) and New Tenure (Navi Sharat). This distinction determines the financial viability of an industrial project.

4.1 Defining the Tenures

The financial viability of any project hinges on the tenure type, a critical consideration in industrial land acquisition in Gujarat.

• Old Tenure: Land held with full ownership rights. It is transferable without government permission.
• New Tenure (Restricted Tenure): Land granted by the government (often under the Tenancy Act itself to former tenants, or under the Agricultural Land Ceiling Act to the landless). This land is inalienable and impartible without the sanction of the Collector. [1]

4.2 The “Premium” Regime

While Section 63AA permits a non-agriculturist to buy land, it does not waive the restrictions of Section 43 (which governs New Tenure land). If the land is New Tenure, the industrialist must pay a Premium (Nazrana) to the State Government to convert the tenure or obtain transfer permission.[11]

4.2.1 Premium Calculation (The Jantri Rate)

The premium is calculated as a percentage of the Market Value, which is determined by the Jantri (Annual Statement of Rates) or the actual transaction value, whichever is higher.

• Standard Rate for Non-Agricultural Purpose: Historically, the premium to convert New Tenure to Old Tenure for NA use has been 80% of the incremental value or the full market value, depending on the specific GR (Government Resolution).
• 2016 Reform: The Gujarat Government relaxed the rules for agricultural conversion (0% premium after 15 years), but for industrial use, the premium requirement largely remains to capture the value appreciation.[12]

4.2.2 The “Double Dip” Risk

A common pitfall for industries is assuming that Section 63AA/65B exempts them from all payments.

• Scenario: An industrialist buys land in a GIDC (Section 65B zone). The land is New Tenure.
• Outcome: They are exempt from permission to buy (Section 63AA), but they are not exempt from paying the premium to the government for the transfer of New Tenure land. The Collector will not mutate the entry in the Record of Rights (Village Form 6) until the premium is paid.

4.3 The 2017 Stamp Duty Reforms

The State has also reformed Stamp Duty to align with these changes. As noted in snippet [13], reforms allowed for smoother transfers of lands previously categorized as restricted, provided the necessary premiums were paid, effectively treating them as “Old Tenure” post-payment.

Chapter 5: The Era of Reform and Regulation (2015-2024 Amendments)

The legislative landscape has shifted from “prohibiting transfer” to “managing utilization” and “monetizing exit.”

5.1 The 2015 Amendment Act: Standardization and Discipline

The Gujarat Tenancy and Agricultural Lands Laws (Amendment) Act, 2015 was a watershed moment. It amended all three acts (Bombay, Kutch, Saurashtra) to standardize the industrial provisions, significantly impacting industrial land acquisition in Gujarat. [5]

Codified Timelines: It introduced the statutory requirement to:

• Commence bona fide industrial use within 3 years.

• Commence production of goods/services within 5 years. [2]

Forfeiture Clause: It mandated that failure to meet these timelines would result in the land vesting in the State Government free from all encumbrances, with the original owner losing all rights.[1]

5.2 The 2020 Amendment: The “Exit Policy” and Penalty Slabs

The 2015 regime proved too draconian. Industries facing global recessions or liquidity crunches faced confiscation of their assets. The Gujarat Tenancy and Agricultural Lands Laws (Amendment) Act, 2020 (preceded by Ordinance 9 of 2020) introduced a pragmatic “Exit and Extension” policy. [14]

5.2.1 Extension of Time Limits (The Penalty Mechanism)

If the industrialist fails to utilize the land within 5 years, they can apply for an extension. The extension is granted upon payment of a penalty based on the prevailing Jantri value [1]:

• Application between 5 to 7 years: Penalty of 60% of prevailing Jantri.
• Application after 7 years: Penalty of 100% of prevailing Jantri.
• Note on Ambiguity: Some sources suggest an ascending scale starting from 3 years. The most consistent reading of the 2020/2024 framework indicates that the penalty escalates steeply with time to discourage land hoarding. The “100%” penalty effectively means buying the land again from the government at current rates.

5.2.2 Transfer of “Failed” Industrial Land

The 2020 Act allows the transfer of such land to another bona fide industrial user (e.g., via merger, amalgamation, or NCLT sale).

• NCLT/Bank Auction: If the transfer is ordered by a Tribunal or Liquidator, the permission is granted with a reduced premium of 10% of Jantri. [14]
• Voluntary Sale: If the industrialist voluntarily sells to another industry because they cannot complete the project, the premium is 20% of Jantri (if they failed to get prior permission). [14]

5.2.3 Section 63AAA / 89AA / 55A: The Non-Industrial Exit

The most radical change is the introduction of Section 63AAA (and equivalents). This allows an industrialist to sell the land for a Non-Industrial Purpose (e.g., residential, institutional), provided:

1. The land is zonally cleared for that use (GDCR compliance).
2. A significant premium is paid (often cited as 25% to 50% of Jantri depending on the specific notification and tenure status). [14]

• Implication: This turns a potential “land scam” (buying cheap agri land for industry and building flats) into a regulated, revenue-generating stream for the state.

5.3 The 2024 Updates

The Gujarat Tenancy and Agricultural Lands Laws (Amendment) Act, 2024 (Bill No. 1 of 2024) primarily focused on updating the penal references.

• Bharatiya Nyaya Sanhita: It replaced references to the Indian Penal Code (IPC) with the Bharatiya Nyaya Sanhita, 2023, specifically regarding the definition of “public servant” and offences related to false declarations. [15]
• Charitable Trusts: It further refined the timeline for charitable trusts to convert land for educational/health purposes, correcting deadlines set in previous amendments.[16]

Chapter 6: Judicial Review and Constitutional Interpretations

The tension between “industrial necessity” and “agrarian protection” has been frequently litigated.

6.1 Vinodchandra Sakarlal Kapadia v. State of Gujarat (2020)

Citation: 2020 SCC OnLine SC 545. [17]

This Supreme Court judgment is the lodestar for interpreting the Gujarat Tenancy Act.

• The Issue: Can a farmer transfer agricultural land to a non-agriculturist (stranger) via a Will (testamentary disposition)?
• The Argument: The petitioners argued that Section 63 prohibits “transfer” (inter vivos) but not “bequest” (Will).
• The Ruling: The Supreme Court held that allowing Wills to bypass Section 63 would defeat the entire purpose of the Act. If a stranger can inherit land, the “tiller’s day” philosophy collapses.
• Relevance to Industry: This judgment reinforces that Section 63AA is a narrow statutory exception. Industrialists cannot use creative legal structures (like Wills from farmers or sham partnerships) to acquire land. They must strictly follow the Section 63AA route and pay the requisite premiums. It closed the “backdoor” to land acquisition.

6.2 GHCL Ltd. v. State of Gujarat

Citation: Gujarat High Court rulings.[18]

• Facts: GHCL acquired large tracts of land. The State delayed NA permission/extensions due to a dispute over unpaid water charges and alleged breach of conditions.
• Holding: The Court held that “Encumbrances” (like water dues) must be resolved, but the State cannot indefinitely stall industrial permissions if the entity is willing to pay or secure the amount. It highlights the friction between Revenue (collecting dues) and Industry (seeking permits).

6.3 Viatrix Engineering and Plastics LLP v. State of Gujarat (2025)

Citation: C/SCA/10770/2025. [19]

• Facts: An application for Section 63AA permission was rejected by the Collector on the technical ground that a previous rejection order (from 2022) had not been challenged in appeal.
• Holding: The High Court set aside the rejection. It emphasized that in the era of “Make in India” and “Ease of Doing Business,” substantive industrial intent should not be defeated by hyper-technical procedural lapses. The Collector was ordered to decide the application on merits. This signals a pro-industry judicial trend in 2024-25.

Chapter 7: Procedural Compliance and Practical Risk Analysis

For a professional peer or investor, understanding the theory is secondary to understanding the process.

7.1 Step-by-Step Compliance Matrix

Step	Action	Relevant Section	Key Risk / Check
1. Diligence	Identify Zone & Tenure	Sec 65B, Sec 43	Is it Old Tenure or New Tenure? Is it in a GIDC/TP Scheme?
2. Purchase	Execute Sale Deed	Sec 63AA / 89A / 55	If New Tenure, pay premium first. If >10 Ha, get Ind. Comm. approval first.
3. Reporting	Notify Collector	Sec 55(2) / 65B	Must be done within 30 days of purchase.
4. Conversion	Apply for NA / Send Notice	Sec 65 / 65B	Check for “Deemed NA” status if in 65B zone.
5. Activity	Commence Construction	Sec 63AA(4)	Must start within 3 years. Keep proof (electricity, invoices).
6. Production	Start Manufacturing	Sec 63AA(4)	Must start within 5 years. Get GST/Factory License.
7. Extension	Apply if Delayed	Sec 63AA(4A)	Apply before expiry to avoid higher penalty slab.

7.2 The “Jantri” Risk

The reliance on “Prevailing Jantri” for all penalties (Section 63AA extension, Section 63AAA exit) introduces a massive variable risk.

• Risk: If the State revises Jantri rates upwards by 100% (as seen in 2023/2024 revisions in some areas), the cost of an extension or exit doubles overnight.
• Mitigation: Investors must factor in Jantri inflation when budgeting for project delays.

7.3 The “Encumbrance” Risk

As seen in the 2015 Amendment, if the land vests in the State due to non-utilization, it vests free from all encumbrances.

• Implication for Lenders: Banks holding a mortgage on such land lose their security if the industry fails to utilize the land and the State resumes it. This makes financing greenfield industrial land acquisition in Gujarat challenging without strict covenant monitoring.

Conclusion

The comparative analysis of Section 63AA, Section 89A, and Section 55 reveals a converged, yet complex, legal ecosystem. The Gujarat government has successfully harmonized the text of these laws through the 2015 and 2020 amendments, effectively creating a unified “Industrial Land Code” that supersedes the regional variations of Bombay, Kutch, and Saurashtra.

However, the “Ease of Doing Business” is not absolute. It is a conditional liberty, heavily gated by the Jantri-linked premium regime. The transition from the “Prohibition” model of 1948 to the “Monetization” model of 2024 means that industrial land acquisition is no longer a legal impossibility for non-agriculturists, but it is a high-stakes financial calculation. The Vinodchandra judgment ensures that these provisions remain strict exceptions, not open doors for real estate speculation.

For the bona fide industrialist, the path is clear for successful industrial land acquisition in Gujarat: Locate in a Section 65B zone, pay the New Tenure premium upfront, and adhere strictly to the 3-year/5-year timelines. Any deviation now incurs a cost, not in bribes or bureaucratic favor, but in statutory penalties payable to the state treasury.

References:

[1] The Gujarat Tenancy and Agricultural Land Act, 1948 – India Code, accessed on December 15, 2025, https://www.indiacode.nic.in/bitstream/123456789/3208/2/tenancyandagriculturalland.pdf 

[2] LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENT The Saurashtra Gharkhed, Tenancy Settlement and Agricultural Lands Ordinance, 1 – India Code, accessed on December 15, 2025, https://www.indiacode.nic.in/bitstream/123456789/4617/1/saurashtra_gharkhed_ordinance1949.pdf

[3] Section 55(2) in Saurashtra Gharkhed, Tenancy Settlement And Agricultural lands Ordinance, 1949 – Indian Kanoon, accessed on December 15, 2025, https://indiankanoon.org/doc/35167985/

[4] Old Tenure vs. New Tenure Land in Gujarat: Restrictions, Premium & Procedure — A Complete Guide – Narendra Madhu Associates, accessed on December 15, 2025, https://nma.legal/old-tenure-vs-new-tenure-land-in-gujarat-restrictions-premium-procedure-a-complete-guide/

[5] Extra No. 29 – PRS India, accessed on December 15, 2025, https://prsindia.org/files/bills_acts/bills_states/gujarat/2015/BillNo30of2015Gujarat.pdf

[6] Section 65 in The Bombay Land Revenue Code, 1879 – Draft Bot Pro, accessed on December 15, 2025, https://app.draftbotpro.com/doc/55556806

[7] Section 65B of The Gujarat Land Revenue Code – Jash for Just World – WordPress.com, accessed on December 15, 2025, https://jashvaidya.wordpress.com/2015/06/16/section-65b-of-the-gujarat-land-revenue-code/

[8] The Gujarat Government Gazette EXTRAORDINARY PART-IV Act of the Gujarat Legislature and Ordinances promulgated and regulations m, accessed on December 15, 2025, https://revenuedepartment.gujarat.gov.in/downloads/gr03_guj_act_no-06_1997.pdf

[9] IN THE HIGH COURT OF GUJARAT AT AHMEDABAD, accessed on December 15, 2025, https://forestsclearance.nic.in/writereaddata/Addinfo/0_0_4118122012181Annexure-III.pdf

[10] Gujarat Government, Revenue Department, Resolution No. NAP/1006/425/K Sachivalya, Gandhinagar D, accessed on December 15, 2025, https://revenuedepartment.gujarat.gov.in/downloads/gr_01072008_k_eng.pdf

[11] CHAPTER-III LAND REVENUE, accessed on December 15, 2025, https://cag.gov.in/uploads/download_audit_report/2019/Chapter_3_Land_Revenue_of_Report_no_3_of_2019_Revenue_Sector_Government_of_Gujarat.pdf

[12] Now, no fee to convert new tenure land to old | Ahmedabad News – The Times of India, accessed on December 15, 2025, https://timesofindia.indiatimes.com/city/ahmedabad/now-no-fee-to-convert-new-tenure-land-to-old/articleshow/54687471.cms

[13] Gujarat Implements Major Land And Stamp Duty Reforms From April 10 – Times Property, accessed on December 15, 2025, https://timesproperty.com/news/post/gujarat-implements-major-land-stamp-duty-reforms-from-april-10-blid9653

[14] THE GUJARAT TENANCY AND AGRICULTURAL LANDS LAWS (AMENDMENT) BILL, 2020. GUJARAT BILL NO. 23 OF 2020. A BILL further to amen – PRS India, accessed on December 15, 2025, https://prsindia.org/files/bills_acts/bills_states/gujarat/2020/Bill%2023%20of%202020%20Gujarat.pdf

[15] The Gujarat Laws (Amendment of Provisions) Ordinance, 2024 – PRS India, accessed on December 15, 2025, https://prsindia.org/files/bills_acts/bills_states/gujarat/2024/Ord1of2024Gujarat.pdf

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