Maharashtra Land Bill Moves To Regularise Legacy Urban Plot Irregularities

The state government on 8^th December, 2025 tabled a bill to amend the Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act to address the complexities of land ownership in developing urban and semi-urban areas, where land originally categorised as agricultural has been converted and transacted for non-agricultural use in small parcels, which were technically in violation of the original 1947 Act.

In order to provide relief to millions of property holders, the government has for urban and non-agricultural lands announced a one-time scheme for the free regularisation of illegal land transactions spanning nearly six decades. The move aims to clear ambiguity from land records, unlock development potential, and grant legal ownership status to approximately 60 lakh small plot holders across the state.

The government’s new framework introduces crucial changes to the decades-old legislation, which was originally intended to prevent the sub-division of agricultural land into uneconomical fragments. The most significant change is the effective repeal of the Act’s restrictions for land in specific areas to regularize past transactions.

The restrictions on fragmentation (Sections 7, 8, and 8AA of the Principal Act) largely ceased to apply to lands situated within the limits of a Municipal Corporation or a Municipal Council (Nagar Parishad/Nagar Panchayat), the jurisdiction of a Special Planning Authority or a New Town Development Authority appointed under the Maharashtra Regional and Town Planning Act, 1966, and any land allocated to residential, commercial, industrial, or any other non-agricultural use in the draft or final Regional Plan.

The requirement for repeated Non-Agricultural (NA) permissions from district collectors was removed in areas where a development plan or regional plan was already approved. Instead, owners could complete the process by paying a one-time premium.

Further, the government has proposed amendments to allow for the regularisation of past transfers or partitions of land contrary to the Act’s provisions, especially for land intended for bona fide non-agricultural use.

For such irregular transactions made on or after November 15, 1965, and before October 15, 2024, if the land is in the exempted urban/non-agricultural areas, the transfer or partition shall be deemed to have been regularized without charging any premium. This change aims to provide relief to millions of plot holders whose land transactions were previously irregular.

The government has also opened a path for citizens who purchased land through notarised agreements or stamp papers but failed to formally register the sale deed. Talathis and Circle Officers have been instructed to assist such buyers in completing the registration process (after payment of applicable stamp duty and fees) and subsequently entering their names as the lawful occupants (Kabjedar) on the 7/12 extract.