--- title: "Maharashtra Government Lifts Ban on Allotment of State-Owned Land to Cooperative Housing Societies" date: 2026-09-11 author: "King Stubb & Kasiva" url: https://ksandk.com/newsletter/allotment-of-state-land-to-cooperative-housing-societies-maharashtra/ --- # Maharashtra Government Lifts Ban on Allotment of State-Owned Land to Cooperative Housing Societies Posted On - 11 September, 2026 • By - King Stubb & Kasiva The Government of Maharashtra, on August 20, 2026, lifted the long-standing freeze on the allotment of state-owned land to cooperative housing societies and introduced a revised policy governing such allotments. The freeze had been imposed following controversies surrounding the earlier lottery-based system. The revised policy, framed in the context of proceedings before the Bombay High Court and the observations of the Bombay High Court dated November 25, 2024, seeks to introduce greater transparency and accountability in the allotment process. ## Auction-Based Allotment Process Under the earlier policy, government-owned plots were allotted to cooperative housing societies through a lottery system. The revised policy replaces this mechanism with a **transparent auction process**. District Collectors will identify available plots and invite bids through public advertisements. Allotment will be based on technical and financial evaluation, with the society offering the highest bid being selected. The base price has been prescribed at 2.5% of the prevailing market value for plots situated in Mumbai City and its suburbs, and 5% of the market value for plots situated elsewhere in Maharashtra. ## 30-Year Lease and Freehold Conversion The revised policy further provides that government land will be granted only on a **30-year lease**. Conversion into Class-I, or freehold, occupancy will be available only after completion of the lease period. ## Reservation and Eligibility Requirements ### Member Composition The policy introduces specific reservation and eligibility requirements for societies allotted government land. At least 20% of the members must belong to **backward classes**, while 5% must comprise persons with disabilities. ### Category-Wise Plot Reservations The available plots are also subject to category-wise reservations: - 40% for the general category - 15% for State Government and local body employees - 10% for Scheduled Castes, Scheduled Tribes and nomadic tribes - 10% for writers, artists, sportspersons and journalists - 5% each for Central Government employees, armed forces personnel and economically weaker sections ## Joint Membership, Benami Restrictions and Transfer Controls The policy also mandates the following compliance measures for societies allotted government land: - Joint membership of spouses is mandatory. - District Collectors have been empowered to take over **benami** or dummy flats, without compensation, where such arrangements are identified. - Any transfer of flats, or their mortgage for purposes such as obtaining bank finance or undertaking redevelopment, will require prior permission from the District Collector. ## Implications for Housing Societies, Developers and Lenders The revised policy represents a significant change in the manner in which government land is allotted to cooperative housing societies in Maharashtra. By replacing the earlier lottery system with a **competitive bidding process**, the policy seeks to enhance transparency and reduce discretionary allotments. The 30-year lease structure, reservation requirements and restrictions on transfer and mortgage impose additional compliance requirements on housing societies. These provisions will be important for cooperative housing societies, developers and financial institutions when structuring future allotments, redevelopment projects and financing arrangements involving government-owned land. *Last Updated on 11 September, 2026* Get King Stubb & Kasiva’s legal updates in your Google feed[![Add King Stubb & Kasiva as a preferred source on Google](https://ksandk.com/wp-content/uploads/google_preferred_source_badge_light_en@2x.png)](https://www.google.com/preferences/source?q=https://ksandk.com/) --- ## Office Locations - [New Delhi](https://ksandk.com/locations/top-corporate-law-firm-in-delhi/) (HQ): +91-11-41318190 | info@ksandk.com - [Mumbai](https://ksandk.com/locations/top-corporate-law-firm-in-mumbai/): 3 offices (Nariman Point, Lower Parel, Andheri) | mumbai@ksandk.com - [Bangalore](https://ksandk.com/locations/top-corporate-law-firm-in-bangalore/): bangalore@ksandk.com - [Chennai](https://ksandk.com/locations/chennai/): chennai@ksandk.com - [Hyderabad](https://ksandk.com/locations/hyderabad/): hyderabad@ksandk.com - [Pune](https://ksandk.com/locations/pune/): pune@ksandk.com - [Kochi](https://ksandk.com/locations/kochi/): kochi@ksandk.com ## Contact - [Contact Page](https://ksandk.com/contact-us/) - General: info@ksandk.com | +91-11-41318190 - WhatsApp: +91-7428567444 - [Privacy Statement](https://ksandk.com/privacy-statement/) - [Terms of Use](https://ksandk.com/terms-of-use/)