In a significant administrative reform, the Maharashtra government has simplified property-related approvals under Section 37A of the Maharashtra Land Revenue Code, 1966, bringing major relief to homebuyers, housing societies, and developers across the state.
The move, notified on June 5, 2026, aims to reduce delays, improve transparency, and make it easier for citizens dealing with properties built on government or leasehold land, commonly known as Nazul land.
What is Section 37A?
Section 37A governs transactions involving government-owned or leasehold land. It mandates that activities such as sale, transfer, redevelopment, change of land use, use of additional Floor Space Index (FSI), or transfer of development rights (TDR) cannot be carried out without prior permission.
The rationale is simple: since the land belongs to the government, any financial gain or change in its use requires official approval and payment of charges such as premium or unearned income.
What was the earlier system?
Until now, all such approvals under Section 37A required clearance from the State Government at Mantralaya in Mumbai. This centralized system often led to long delays, bureaucratic hurdles, and increased dependency on intermediaries.
Housing societies, especially in Mumbai, Thane, and Navi Mumbai, faced significant challenges in getting approvals for redevelopment projects, while many property transactions remained stuck or were carried out without proper permissions, creating legal complications.
What has changed now?
The government has decentralized the approval process by delegating powers to local authorities:
- District Collectors can approve cases involving up to ₹10 lakh
- Divisional Commissioners can approve cases between ₹10 lakh and ₹20 lakh
- Only cases above ₹20 lakh will require State Government approval
Additionally, authorities have been directed to conduct a special three-month drive to identify and regularize unauthorized transactions carried out without prior approval.
How will this benefit common citizens?
The reform is expected to have a direct and meaningful impact on everyday property owners.
Faster approvals:
With decisions now being taken at the district level, citizens can expect significantly reduced waiting times for permissions related to sale, transfer, or redevelopment.
Boost to redevelopment:
Many old buildings on leasehold land were stuck due to approval delays. The new system will help unlock stalled projects, enabling residents to move into safer, modern homes sooner.
Regularization of past issues:
Property owners who previously carried out transactions without proper approvals will now have an opportunity to legalize their holdings by paying the required charges.
Improved property value and liquidity:
Clearer processes and legal certainty are likely to boost buyer confidence, improve resale prospects, and make it easier to obtain home loans.
Reduced dependency on middlemen:
Decentralization is expected to reduce bureaucratic bottlenecks and minimize the need for agents or political intervention.
A step towards ease of doing business
The reform aligns with the government’s broader push to improve ease of doing business in the real estate sector. By shifting decision-making closer to the ground level, the state aims to create a more efficient and transparent system.
However, it is important to note that while the process has been simplified, permissions are still mandatory, and applicable charges such as premium or unearned income will continue to apply.
Conclusion
The latest changes to Section 37A represent a practical reform that addresses long-standing challenges in property transactions involving government land. For common citizens, the biggest gain lies in faster approvals, reduced uncertainty, and the opportunity to resolve pending legal issues—making property ownership and redevelopment smoother than before.
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