Introduction

By Government Resolution dated 10 February 2026, the Government of Maharashtra has given effect to amendments made to the Maharashtra Land Revenue Code, 1966. These changes substantially alter the requirement of obtaining Non-Agricultural (NA) permission for use of agricultural land for non-agricultural purposes.

The reform is aimed at simplifying the existing framework and addressing the overlap between revenue and planning authorities.

Legal Background

Under the Maharashtra Land Revenue Code, 1966, conversion of agricultural land for non-agricultural use required:

- Prior NA permission from the Collector;
- Issuance of an NA sanad; and
- Payment of non-agricultural assessment.

At the same time, development activities such as construction or layout approvals required permission from the planning authority under the Maharashtra Regional and Town Planning Act, 1966.

In practice, this resulted in parallel approvals being required from two different authorities for what was, in substance, the same change in land use.

Key Changes Introduced

The amendment and the present Government Resolution bring in the following changes:

1. Removal of NA Permission Requirement

Where development permission or building approval has been granted by the competent planning authority, separate NA permission under the Land Revenue Code is no longer required.

2. Abolition of NA Sanad

The requirement of obtaining an NA sanad from the revenue authorities has been done away with in such cases.

3. Discontinuation of NA Assessment

The levy of non-agricultural assessment has been discontinued under the revised framework.

4. Introduction of One-Time Premium (Section 47)

In place of the earlier system of annual NA assessment, the amended Section 47 now provides for a one-time premium for non-agricultural use of land.

The premium is linked to the market value of the land (as per Annual Statement of Rates) and is payable at slab rates:

- 0.1% – for land up to 1000 sq. m.
- 0.25% – for land between 1000 sq. m. and 4000 sq. m.
- 0.5% – for land exceeding 4000 sq. m.

The amendment also addresses past conversions:

- For land converted on or before 31 December 2001, the one-time premium is calculated on the market value as per the ASR of 2001.
- For land converted between 1 January 2002 and commencement of the 2025 Amendment, the premium is calculated based on the ASR applicable in the year of conversion.

The State Government retains the power to grant exemptions from payment of premium in cases involving public purpose or public interest.

Scope and Applicability

The revised position applies in cases where land use is supported by a valid development permission granted by the planning authority.

In situations where no such approval exists, the position would need to be examined based on the facts of each case.

Legal and Practical Implications

1. Removal of Dual Approvals

The requirement of approaching both revenue authorities and planning authorities for separate permissions has effectively been removed.

2. Reduced Compliance Burden

The process of land conversion is now more straightforward, with fewer procedural steps and reduced costs.

3. Shift from Recurring Tax to One-Time Levy

The earlier system of annual NA assessment has been replaced with a single upfront premium, bringing greater certainty in cost and eliminating recurring liability.

4. Effect on Pending Matters

Pending applications for NA permission may not require further consideration where development permission is already in place. Similarly, existing disputes may need to be viewed in light of the amended position.

5. Continued Levies

While NA assessment has been discontinued, other statutory levies such as property tax and development charges continue to apply.

Issues for Consideration

Certain aspects may still require clarification in practice, including:

- Whether the amendment operates retrospectively;
- Treatment of cases where NA permission had already been granted or refused;
- Application to partially developed or mixed-use lands;
- Transition of pending proceedings.

Conclusion

The removal of NA permission, sanad, and assessment, coupled with the introduction of a one-time premium, marks a shift towards a more streamlined regulatory framework. By treating development permission as sufficient for change of land use, the State has reduced duplication and simplified the process.

The practical application of these changes will become clearer with implementation and, where necessary, further clarification.