Maharashtra Land Reform: Cabinet Clears Rules For Class-II To Class-I Conversion; Over 1 Lakh Beneficiaries To Gain

Mumbai, April 22: The Maharashtra Cabinet on Wednesday approved amendments to restructure the premium for converting land tenure from Occupant Class–II to Occupant Class–I under the state’s land ceiling law. It is a significant policy decision aimed at easing long-pending land ownership issues. The meeting was chaired by Chief Minister Devendra Fadnavis.

New rules to benefit landholders

The decision paves the way for implementing the 'Maharashtra Agricultural Lands (Ceiling on Holdings) (Conversion of Occupant Class-II to Class-I) Rules, 2026', which is expected to benefit over 1.09 lakh landholders linked to nearly 1.73 lakh hectares of land across the state.

Background of land allocation

These lands were originally distributed around four to five decades ago to landless persons, ex-servicemen, and members of weaker sections, including Scheduled Castes and Scheduled Tribes, under provisions of the 'Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 1961'.

However, beneficiaries holding Class-II tenure faced several restrictions, including limitations on transfer and non-agricultural use, along with the requirement of prior permission from the district collector and payment of substantial unearned income charges.

Easing long-standing constraints

Officials said the new framework seeks to address these long-standing constraints by enabling smoother conversion to Class-I tenure, thereby granting greater ownership rights and flexibility in land use.

Revised premium structure

Under the revised structure, the government has rationalised the premium rates for such conversions based on ready reckoner values. For lands that have not been transferred since allotment, the premium will be 30 per cent of the market value in urban areas and 25 per cent in rural areas.

In cases where land has already been transferred or its usage has changed, the rates will vary. In urban areas, the premium will be 30 per cent for agricultural use and 25 per cent for non-agricultural use. In rural areas, the corresponding rates will be 25 per cent for agricultural use and 20 per cent for non-agricultural use.

Simplified approval mechanism

The Cabinet has also streamlined the approval mechanism. Cases where the market value of land is up to Rs 50 lakh can be cleared at the district collector level, while proposals exceeding this threshold will require state government approval.

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Relief for beneficiaries

The move is expected to simplify procedures, reduce administrative hurdles, and provide major relief to thousands of beneficiaries who have long sought full ownership rights over their land.

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