Legal Framework and Process of Non-Agricultural (NA) Land Conversion in Maharashtra

Posted On - 3 June, 2025 • By - Jidesh Kumar

Introduction

 In the state of Maharashtra, the use of agricultural land for non-agricultural purposes such as residential, commercial, or industrial activities is stringently regulated. The conversion of land use requires prior permission from the revenue authorities and is governed primarily by the Maharashtra Land Revenue Code, 1966 and the Maharashtra Land Revenue (Conversion of Use of Land and Non-Agriculture Assessment) Rules, 1969. This legal article outlines the detailed procedure, statutory obligations, documentation, and implications of the NA land conversion process in Maharashtra.

Section 44 of the Maharashtra Land Revenue Code, 1966 mandates that no land shall be used for non-agricultural purposes without prior permission from the Collector. Any unauthorized change of land use constitutes a violation of revenue laws and is liable for penalties. The accompanying Rules of 1969 lay down the procedural and assessment framework for such conversions.

Purpose and Applicability

NA conversion is sought when agricultural land is proposed to be used for:

  •  Residential development
  • Commercial buildings
  • Industrial activities
  • Infrastructure and public utilities
  • Warehousing, schools, hospitals, etc.

 This requirement is applicable to all private landowners, developers, industries, and public sector undertakings seeking to repurpose agricultural lands.

Procedure for NA Conversion

1. Application Submission: The landowner or applicant must submit an application to the District Collector in the prescribed format along with a non-judicial stamp of Rs. 5.

2. Documentation: The following documents are typically required:

  •  7/12 Extract and Village Form 8A
  • Mutation entries reflecting ownership
  • Certified land map issued by the Taluka Inspector or Survey Office
  • Site plan (8 copies) and building plan (if applicable)
  • No Objection Certificates (NOCs) from:
  • Gram Panchayat or Municipal Council
  • Highway Authority (if land abuts any major road)
  • No dues certificate from co-operative society (if applicable)
  • Certificate from Talathi that land is not under acquisition

 3. Scrutiny and Verification:

  • The Tahsildar conducts a field inspection and verifies ownership, encumbrances, land classification, and pending dues.
  • Technical and environmental clearances are also verified if required.

4. Assessment and Premium Payment:

The Collector’s office assesses the land use conversion premium based on ready reckoner rates.

Premium rates are approximately:

  • Residential use: 50% of market value
  • Commercial use: 75% of market value
  • Industrial use: 20% if converted from residential

Upon payment, a formal order of conversion is issued.

5. Issuance of NA Order: The Collector issues an NA order permitting the specified non-agricultural use. This order becomes the legal basis for altering land records and initiating developmental activities.

6. Mutation of Land Records:

  •  After receiving the NA order, the landowner must apply for mutation of the 7/12 records.
  • The Talathi updates the records to reflect the new classification.

Timeframe

The process is intended to be completed within a period of 15 to 30 days, provided all documentation is in order. However, delays are common due to site inspections, inter-departmental NOCs, and backlogs in revenue offices.

Online Application and e-Governance

The Government of Maharashtra has introduced digital portals (such as Aaple Sarkar and services.india.gov.in) for online application submission, status tracking, and payment of fees. Despite this, most districts still rely partially on manual verification and field reports.

Post-Conversion Obligations

Once conversion is granted:

  • The landowner must commence the non-agricultural use within one year.
  • A written intimation must be provided to the Tahsildar regarding the commencement.
  • Non-agricultural assessment and local body taxes become applicable.

Consequences of Non-Compliance

Unauthorized use of agricultural land for NA purposes without due permission invites stringent penalties:

  • Fines up to Rs. 500 initially
  • Recovery of non-agricultural tax from the date of use
  • Additional penalties up to 40 times the annual NA assessment
  • Regularization is possible in select cases but involves payment of back taxes, penalties, and interest.

Conclusion

The conversion of agricultural land for non-agricultural purposes in Maharashtra is a critical compliance requirement with significant legal, financial, and developmental implications. Understanding the legal framework and adhering to the procedural rigor helps landowners and developers mitigate regulatory risks, avoid penalties, and ensure lawful use of land in alignment with Maharashtra’s urban planning policies. Legal consultation and documentation accuracy play a vital role in securing timely approvals and maintaining the legality of land use transformations.

Contributed by – Gauri Jagtap