Legalisation of Subdivided Land Parcels and Relaxation of Fragmentation Law

Landmark Policy Reform in Land Governance in Maharashtra.

Date: July 09, 2025

The Government of Maharashtra has introduced a major policy reform to legalise subdivided land parcels created before January 1, 2025. The announcement was made by Revenue Minister Chandrashekhar Bawankule in the Legislative Assembly. This long-awaited move is expected to benefit over 50 lakh families who have struggled with land ownership and registration issues due to old land laws.

Under the new policy, all plots of land up to 1 (one) guntha in size (approximately 1,089 sq. ft.) that were created before the cutoff date will now be considered legal. This will allow landowners to get construction permissions, register their plots, and sell or transfer land legally.

The reform addresses long standing problems caused by the Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act, 1947. This law was originally meant to support agriculture by preventing land from being split into very small plots. However, it has become outdated and unfit for current urban and semi urban realities, leaving many families in legal trouble.

Minister Bawankule described the decision as a “revolutionary step” that will remove hurdles in property transactions and help boost planned development. At the same time, the government has made it clear that any new subdivisions made after January 1, 2025 must follow the proper rules and get necessary approvals from development authorities.

To ensure smooth implementation, a four-member committee will be formed. This will include senior officials from the revenue and urban development departments, the settlement commissioner, and the inspector general of registration. The committee will prepare a Standard Operating Procedure (SOP) within 15 days. This SOP will provide clear guidelines on layout approvals, road access, land registration, and construction permissions.

The policy will apply in areas governed by municipal corporations, municipal councils, nagar panchayats, and villages located within 200 to 500 metres of urban boundaries. In larger cities like Mumbai and Pune, this distance can extend up to 2 kilometres. The government has also asked MLAs to suggest additional rural areas that should be included, especially those near highways and rapidly developing zones.

Importantly, the government has stressed that this legalisation does not mean that unauthorised layouts or illegal construction will be allowed. The aim is to bring land laws in line with current needs while promoting planned and lawful development, and reducing the involvement of middlemen.

Experts have praised the decision as practical and timely. In cities like Pune and Nashik, where land subdivision is common due to housing shortages, this reform could improve access to legal housing, increase property tax collection, and give more power to rightful landowners.

Overall, this policy marks a turning point in land governance in Maharashtra. It sets the stage for more inclusive development and clearer legal processes, provided that the SOP is implemented quickly and transparently.