Section 65B(5) in The Bombay Land Revenue Code, 1879
(5)(a)The occupant shall commence industrial activity on such land within three years from the date of the notice sent by him to the Collector under clause (b) of subsection (2) and commence production of goods or providing or services on such land within five years from such date:Provided that the period of three years or, as the case may be, five years may, on an application made by the occupant in that behalf, be extended from time to time by the Collector in such circumstances as may be prescribed by rules made under this Act.(b)Where the occupant fails to commence industrial activity or production of goods or providing of services within the period specified in clause (a) or the period extended under the proviso to clause (a), he shall be liable to pay, in addition to non-agricultural assessment leviable under section 48, non-agricultural assessment at the rate of five rupees per square metre of the land with effect from the date of expiry of the period of three years or five years or, as the case may be, the period extended under the proviso to clause (a) till he commences industrial activity or, as the case may be, commences production of goods or providing of services.Explanation I. - For the purposes of this section, section 48 and section 67A, the expression "bonafide industrial purpose" means an activity of manufacture, preservation or processing of goods, (other than the hazardous and toxic chemicals specified in Part II of the Schedule I to the Manufacture, Storages and Import of Hazardous Chemicals Rules, 1989 made under the Environment (Protection)Act, 1986 (29 of 1986), and for the time being in force) or any handicraft, or industrial business or enterprise, carried on by any person and includes construction of industrial buildings used for the manufacturing process or purpose, or power projects or port projects and ancillary industrial usage like research and development, godown, canteen, office building of the industry concerned, or providing housing accommodation to the workers of the industry concerned, or establishment of industrial estate including a co-operative estate or service industry or tourism or cottage industry.Explanation II. - For the purposes of this section, an occupant shall be deemed to have commenced the use of land for a bonafide industrial purpose from the date on which he ceases to use the land for agricultural or, non-agricultural purpose existing immediately before the date of such cesser.]
