In a major reform aimed at simplifying land development and reducing regulatory hurdles, the Maharashtra government has issued detailed guidelines to implement sweeping changes under the Maharashtra Land Revenue Code (Second Amendment) Act, 2025.
Through a circular dated April 23, 2026, the state has clarified that separate Non-Agricultural (NA) permission will no longer be required for land development if a project has already received approval under planning laws. This effectively removes the long-standing dual approval system involving both the revenue department and planning authorities.
The move is expected to significantly ease the process for developers and landowners, who earlier had to obtain NA permission from the Collector in addition to building plan approvals under the Maharashtra Regional and Town Planning Act, 1966.
Shift from Annual NA Tax to One-Time Premium
Another major reform introduced under the amendment is the abolition of annual NA (Non-Agricultural) tax. Previously, landowners were required to pay both NA tax and property tax, resulting in a dual taxation burden.
Under the new framework, this has been replaced with a one-time conversion premium (adhimoolya) payable at the time of development approval. This is expected to streamline revenue collection while reducing recurring costs for landowners.
Digital Push: Online Systems Made Mandatory
To ensure transparency and efficiency, the government has mandated that the conversion premium must be paid online through digital platforms such as:
- Building Plan Management System (BPMS)
- AutoDCR
The upgraded system has been made operational from April 21, 2026, and will integrate land conversion payments directly with building plan approvals.
Planning authorities will collect the premium through these systems, while revenue officials such as Tahsildars will receive real-time notifications for verification and compliance checks.
Parallel Processing and Faster Approvals
Importantly, the government has directed that development permissions should not be delayed due to revenue-related checks. Any verification regarding land ownership, dues, or additional charges will be handled in parallel by revenue authorities.
In cases where irregularities are found—such as pending dues or non-standard land tenure—the matter will be escalated to the Collector within 30 days for further action.
Strict Instructions on Old Practices
The circular also issues strict directions to authorities:
- Any NA permissions granted after December 31, 2025 must be cancelled immediately, and fees collected must be refunded.
- Any NA tax collected after the amendment must also be refunded, and replaced with the one-time premium system.
Additionally, unauthorized non-agricultural land use prior to the amendment will continue to face penalties, while violations after the cutoff date will be dealt with under planning laws.
Revenue Sharing and Compliance
The one-time conversion premium will be divided between the state government and local bodies, ensuring that both continue to receive revenue under the new system.
The government has also instructed authorities to ensure proper digital records of all payments, including previously collected offline premiums, once systems are fully integrated.
Impact on Real Estate Sector
This reform is being seen as a major step toward ease of doing business in Maharashtra’s real estate sector. By eliminating duplicate approvals and shifting to a digital, single-window-like system, the government aims to reduce delays, improve transparency, and boost development activity.
However, industry experts note that while the removal of annual NA tax is a relief, the one-time premium could increase upfront project costs, particularly in high-value urban areas.
Conclusion
With these changes, Maharashtra is moving toward a more streamlined and digital land development framework. The success of this reform will depend on how efficiently the new systems are implemented and how smoothly authorities transition from the old regime to the new one.
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