Maharashtra Government Amends Land Revenue Code to Simplify Land Conversion Process
In a significant move aimed at streamlining land-use procedures, the Maharashtra government has enacted a major amendment to the Maharashtra Land Revenue Code of 1966. The change, notified through the Maharashtra Land Revenue Code (Second Amendment) Act, 2025, and published in the official Government Gazette, removes the long-standing requirement for landowners to obtain separate non-agricultural (NA) permission from the district collector when converting agricultural land for other uses.
Elimination of Collector Permission for Approved Plans
Under the newly amended provisions, if a change in land use is already permitted under an existing development plan or regional plan, and the relevant planning authority has granted development permission or approved a building plan, the landowner is no longer obligated to approach the collector for an additional NA order. The law explicitly states that no permission from the collector is required in such scenarios, thereby reducing bureaucratic hurdles and expediting the conversion process.
Introduction of a One-Time Premium System
The amendment also introduces a fundamental shift in the financial aspect of land conversion by linking it to a one-time premium payment instead of the previous annual NA assessment. Before issuing development permission or approving a building plan, the planning authority will now recover a one-time premium for non-agricultural use based on the market value of the land. This value is determined through the annual statement of rates, with the premium structured on a slab-based system to ensure fairness and transparency.
Once the approval is granted, the necessary changes will be automatically reflected in the revenue records based on that permission or plan approval, simplifying administrative updates and reducing paperwork for landowners.
Provisions for Older Land Conversions
To address historical cases, the amendment provides a clear method for calculating premiums for land conversions that occurred in the past. For land converted to non-agricultural use on or before December 31, 2001, the one-time premium will be calculated using the rates applicable in 2001. For conversions that took place between January 1, 2002, and the commencement of this Amendment Act, the premium will be determined based on the rates of the specific year in which the conversion was originally carried out.
Comprehensive Legal Clean-Up and Alignment
As part of a broader effort to modernize and align the legal framework with the new system, the gazette notification also highlights that several sections and chapters of the Land Revenue Code have been either deleted or updated. This clean-up ensures that the law is consistent with contemporary land management practices and reduces redundancies, making it more efficient for both authorities and citizens.
This amendment is expected to significantly boost real estate development, industrial growth, and infrastructure projects across Maharashtra by making land conversion processes more straightforward and less time-consuming.
