Mumbai: In a significant reform aimed at easing land development and reducing bureaucratic hurdles, the Maharashtra government has amended the state’s land revenue law to eliminate the requirement of obtaining separate Non-Agricultural (NA) permission from district collectors for converting agricultural land to non-farming use.
Building Plan As Deemed NA
Under the new provisions, approval of the building plan granted by the town planning department or the relevant local planning authority will now be treated as deemed NA permission. Consequently, landowners will no longer need to approach district collectors for a separate construction or NA certificate once the proposed land use is permissible under the sanctioned development plan.
Gazette Notification Issued
The decision was taken by Revenue Minister Chandrashekhar Bavankule. the amendment has been notified through an official government gazette. The reform also introduces key changes to the Maharashtra Land Revenue Code, including the abolition of the annual non-agricultural tax.
Ending Procedural Delays
Until now, citizens were required to obtain building plan approval from planning authorities and then make separate rounds to district collector offices for NA permission, often leading to delays in land development and project execution. The revised framework removes this duplication, enabling faster approvals and smoother administrative processes.
Banks Directed On Loans
The government has also clarified that once planning authority permission is granted, banks should not insist on a separate NA certificate while sanctioning loans. District collectors have been directed to communicate these instructions to all banking institutions.
Relief On Pending Dues
Providing relief to landholders with outstanding non-agricultural tax dues, the government has waived recovery of pending annual NA tax up to the date of the reform. However, for lands that were converted to non-agricultural use before or after 2001, owners will be required to pay a one-time conversion premium within one year at prescribed rates.
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Online Application System
Applications for building permission can now be submitted online through BPMS or Auto-DCR systems. Once construction permission is granted, the change in land use will be automatically recorded in the digital 7/12 land extract through the revenue department’s computerised system.
Class-II Lands Unchanged
The government clarified that obtaining building permission alone will not alter the classification of Class-II occupancy lands, and applicable premium charges must still be paid wherever required.
Graded Conversion Premium Rates
Replacing the annual NA tax, the state will levy a graded one-time conversion premium based on the land’s prevailing market value:
Up to 1,000 sq. m.: 0.10% of current market value
1,001 to 4,000 sq. m.: 0.25% of current market value
Above 4,000 sq. m.: 0.50% of current market value
Minister’s Statement
Revenue Minister Chandrashekhar Bavankule said the decision reflects the government’s commitment to public welfare and administrative efficiency.
“This decision has been taken as per the directions of Chief Minister Devendra Fadnavis. Necessary amendments have been made to the Maharashtra Land Revenue Code, and the annual non-agricultural tax has also been abolished. The move will provide major relief to citizens and speed up development,” he said.
Boost To Development
The reform is expected to streamline land conversion procedures, encourage investment, and accelerate urban and infrastructure development across Maharashtra.
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