Key Takeaways
- Under Section 29 of the Maharashtra Land Revenue Code, 1966, land holders fall into three classes: Occupant Class I, Occupant Class II, and Government Lessees.
- Occupant Class I (bhogvatdar varg-1) means full, unrestricted ownership — freely transferable, no permission needed. This is “juni shart” (old tenure) land.
- Occupant Class II (bhogvatdar varg-2) is restricted tenure — heritable but transferable only with Collector/Government sanction, usually on payment of a premium or nazrana. This is “navi shart” (new tenure) land.
- Inam, devasthan, restricted grants and many government-allotted lands are commonly Class II. The class is recorded on the 7/12 extract.
- Class II can be converted to Class I under the Maharashtra Land Revenue (Conversion) Rules, 2019, on payment of a conversion charge. Premium, nazrana and conversion rates vary by GR and district — confirm the current figure.
By Girish Chhalwani, Founder & CEO, THE EDGE Developments · 8 min read · Last updated 30 July 2026
“Bhogvatdar class” is the tenure category recorded against a piece of land in Maharashtra — Occupant Class I is full ownership you can sell freely, while Occupant Class II is restricted ownership you can sell only with government permission and, usually, a premium. For a buyer, the difference decides whether a deal is a straightforward purchase or a slow, cost-laden exercise that can turn a sale deed void if you skip a step. This guide explains the two classes, how to spot Class II on the 7/12, which land types carry it, the risk of buying it unknowingly, and how conversion to Class I works.
What “bhogvatdar” and “occupant class” mean
“Bhogvatdar” (occupant) is the person recorded as holding the land; the “class” describes the strength of that holding. The Maharashtra Land Revenue Code, 1966 (MLRC) is the master statute for tenure in the State. Its Section 29 divides holders of unalienated land into Occupant Class I, Occupant Class II, and Government Lessees. The class is not a formality — it is the difference between a title you can deal with freely and one the Government still holds a leash on.
Occupant Class I vs Class II: the core comparison
| Feature | Occupant Class I (Varg-1) | Occupant Class II (Varg-2) |
|---|---|---|
| Nature of holding | Unalienated land held in perpetuity without restriction on transfer. | Unalienated land held in perpetuity subject to restrictions on transfer. |
| Right to sell | Free — no prior permission required. | Restricted — needs prior sanction of the Collector/Government. |
| Payment on transfer | None to Government. | Often a premium/nazrana computed per the applicable GR. |
| Tenure name (Marathi) | Juni shart (old tenure). | Navi shart (new/restricted tenure). |
| Heritable? | Yes. | Yes — inheritance is not the same as free transfer. |
| Risk to buyer | Low — clean, marketable title. | High if bought without sanction — the transfer can be void and the land can revert. |
Which lands are usually Class II
Class II tenure typically attaches to land that the State or a former grantor gave on concessional or conditional terms. Commonly seen categories include:
- Inam lands — grants under the various inam-abolition statutes, often continued on restricted tenure.
- Devasthan inam — land attached to temples/religious endowments.
- Government-allotted land — plots granted to landless persons, project-affected persons, cooperative societies or for specific purposes at concessional rates.
- Restricted-tenure grants — occupancy granted on “new tenure” (navi shart) with conditions on use and transfer.
- Land under tenancy-abolition acts — where a former tenant became owner subject to conditions.
This list is indicative, not exhaustive, and the exact tenure conditions differ from grant to grant. Always read the actual entry rather than assuming from the land’s history.
How Class II shows up on the 7/12 extract
The occupant class is recorded in the 7/12 (saat-baara) extract, and Class II land leaves visible fingerprints. Look for the words “Bhogvatdar Varg-2,” “navi shart” (new tenure), or the entry of “Sarkar” (Government) or a specific condition in the “other rights” (itar hakk) column. Class I land generally reads as “Bhogvatdar Varg-1” or “juni shart.” If the extract shows a restriction, a premium condition, or a grant order number, treat it as Class II until proven otherwise. You can pull the extract from the Mahabhulekh portal, but a certified extract from the talathi is what matters for a transaction.
The real risk: buying Class II unknowingly
The danger is not that Class II land cannot be bought — it often can — but that it is bought as if it were Class I. If you register a sale of Class II land without the required Collector sanction, the transfer can be treated as in breach of the tenure condition. Consequences range from the transaction being void or voidable, to a demand for unpaid premium/nazrana surfacing years later, to the land reverting to the Government in the worst case. Even where the deal survives, an unresolved Class II tag makes the title hard to sell on and hard to finance. This is precisely the kind of defect that does not show up in a glossy brochure but does show up in a careful 7/12 read.
“The costliest word in a Maharashtra land deal is sometimes a single line on the 7/12: navi shart. Class II land isn’t uninvestable — but you have to price the premium, budget the Collector’s permission, and never register the deed as if it were ordinary freehold. We treat ‘what is the bhogvatdar class?’ as a go/no-go question, not a footnote.”
— Girish Chhalwani, Founder & CEO, THE EDGE Developments
Converting Class II to Class I
Restricted (Class II) tenure can be regularised into full (Class I) tenure by applying to the District Collector under the Maharashtra Land Revenue (Conversion of Occupancy Class-II and Leasehold Lands into Occupancy Class-I Lands) Rules, 2019. The broad sequence:
- Apply to the District Collector for conversion, identifying the survey number and its grant history.
- Collector verifies the tenure, the original grant conditions, and eligibility for conversion.
- Pay the conversion charge/premium as computed under the Rules and the applicable Government Resolution.
- Order and mutation — on payment, the Collector issues a conversion order and the 7/12 is updated to Class I.
The conversion charge, and any nazrana or premium on transfer, are computed as a percentage tied to market value or land revenue under the relevant GR — and those rates vary by land category and change with successive Government Resolutions. Do not budget on a fixed percentage you saw quoted somewhere; get the current figure for your land category from the Collector’s office before you commit.
What a buyer should do before paying
- Read the certified 7/12 and confirm the bhogvatdar class and any tenure condition.
- If Class II, identify the grant source (inam, devasthan, allotment) — it drives the conditions.
- Establish whether Collector sanction is needed and what premium/nazrana applies.
- Decide whether the seller converts to Class I first, or the deal is structured with permission built in.
- Take written legal opinion before any advance — a void transfer is far costlier than the fee.
Frequently Asked Questions
What is the difference between Occupant Class 1 and Class 2 land?
Occupant Class I is full ownership held in perpetuity with no restriction on transfer, so it can be sold freely. Occupant Class II is restricted tenure held in perpetuity subject to conditions, so it can be transferred only with Collector or Government permission, usually on payment of a premium or nazrana.
How do I know if my land is Class 1 or Class 2?
Check the 7/12 extract. Class II land usually shows “Bhogvatdar Varg-2,” “navi shart” (new tenure), the entry of the Government (Sarkar), or a specific condition in the other-rights column, while Class I shows “Bhogvatdar Varg-1” or “juni shart.” When in doubt, get a certified extract and a legal opinion.
Which types of land are usually Occupant Class 2?
Inam lands, devasthan (temple) lands, restricted-tenure grants, land allotted by the Government at concessional rates, and land where a former tenant became owner under tenancy-abolition laws are commonly Class II. The exact conditions vary with each grant, so the specific entry must be read.
Can I sell or buy Occupant Class 2 land?
Yes, but only with the prior sanction of the Collector or Government, and usually on payment of a premium or nazrana. Registering a sale of Class II land without that permission can make the transfer void and can even lead to the land reverting to the Government.
How is Class 2 land converted to Class 1?
The holder applies to the District Collector under the Maharashtra Land Revenue (Conversion of Occupancy Class-II and Leasehold Lands into Occupancy Class-I Lands) Rules, 2019, and pays a conversion charge computed under the applicable Government Resolution. On payment, the Collector issues an order and the 7/12 is updated to Class I. The charge varies by land category and GR, so confirm the current rate.
Is the plot Class I or Class II?
THE EDGE Developments reads the tenure before you buy — confirming bhogvatdar class, premium exposure and conversion cost, so a Class II tag never voids your deal. Talk to our land-intelligence team.
Related Reading
- Maharashtra Land Records Portals: The Complete Directory of Government Websites (pillar guide)
- Kul and Tenancy Rights on Agricultural Land in Maharashtra: The Hidden Encumbrance
- Who Can Buy Agricultural Land in Maharashtra: Rules, Eligibility and Penalties
- 7/12 to Property Card: Maharashtra’s 2026 Land Record Reform Explained
- Infrastructure-Triggered Land Appreciation: Karjat Corridor Case Study
- Contact THE EDGE Developments
Citations & Sources
- Maharashtra Land Revenue Code, 1966 — India Code (official) and full text on Indian Kanoon. Verified 30 July 2026.
- Section 29, MLRC 1966 (classes of occupants) — Indian Kanoon. Verified 30 July 2026.
- Maharashtra Land Revenue (Conversion of Occupancy Class-II and Leasehold Lands into Occupancy Class-I Lands) Rules, 2019 — text and notes. Verified 30 July 2026.
- 7/12 extracts and land records — Mahabhulekh, Government of Maharashtra. Verified 30 July 2026.
This article is general information, not legal advice. Tenure conditions, premium/nazrana rates and conversion charges vary by district and change with successive Government Resolutions; confirm the current position with the Collector before acting.
