G.R. Dt. 10th February, 2026 – Department of Revenue and Forest – Sub- Guidelines regarding Abolition of N.A. Permission and N.A. Assessment in Maharashtra
—————————–
Issuing Directions in the nature of Guidelines vis-à-vis Abolition of Non-Agricultural Permission, Sanad, as well as Non-Agricultural Assessment under the Maharashtra Land Revenue Code (Amendment) Act, 2025
Government of Maharashtra
Department of Revenue and Forest
Government Resolution No:- NAP-2025/Pra.Kra.177/Jamin-01A
Madam Cama Marg, Hutatma Raj Guru Chowk,
Mantralaya, Mumbai- 400 032
Dated 10th February, 2026
Vide:-
[1] The Maharashtra Land Revenue Code, 1966.
[2] The Maharashtra Regional and Town Planning Act, 1966.
[3] The Maharashtra Land Revenue Code (Second Amendment) Act, 2025.
—————–
Preface:-
From time to time, i.e. in the years 1994, 2014, 2017 and 2018 provisions were made in Sections 42, 42-A, 42-B, 42-C, 42-D and 44-A of the Maharashtra Land Revenue Code, 1966 which inter-alia provided that in some cases permission would not be necessary for the use of land for non-agricultural purpose. As per these provisions, the land holders were required to pay Non-Agricultural Tax and obtain a Sanad for Deemed Non-Agricultural use for the Non-Agricultural use of a land. However, the Government had noticed the fact that it entailed same procedure and consumed same time, as required for obtaining Permission for the use of land for Non-Agricultural purpose. Moreover, when the Panning Authority grants Development Permission or sanctions Building Plans on the lands in conformity with the Maharashtra Regional and Town Planning Act, 1966, the permission of department of Revenue for Non-Agricultural use, as well as the provisions requiring Sanad for Non-Agricultural use become redundant. Hence, it had become imperative to avoid the dual permission of the Planning Authority under the Maharashtra Regional and Town Planning Act, 1966 and that of the Revenue Department under the Maharashtra Land Revenue Code, 1966. Until now, the land holders within the areas of Municipal Corporations and “A” Class Municipal Councils in the State were required to pay one time Conversion Tax while obtaining Non-Agricultural Permission. Moreover, on the lands assessed to Non-Agricultural use in the State, Non-Agricultural Tax was levied each year by the Department of Revenue. Furthermore, on the properties erected on such lands Property tax, too, was levied by the Local Self-Government Bodies. Hence, due to such Double Taxation System, a demand was frequently raised to repeal the Non-Agricultural Tax.
For this purpose, Bill No. 97 of 2025 entitled “The Maharashtra Land Revenue Code (Second Amendment) Bill, 2025” was presented to the Legislature in the winter Session for the year 2025. Upon approval by both the Houses of the State Legislature and the assent of the Hon’ble Governor, the said Bill was converted into the Maharashtra Land Revenue Code (Second Amendment) Act, 2025 on 31.12.2025. By this Amendment, the complex sections pertaining to the permission for Non-Agricultural use and the Procedure for Sanad previously forming part of the Maharashtra Land Revenue Code, 1966 viz. Sections 42, 42-A, 42-B, 42-C and 42-D were omitted and a simplified Section 42 was newly added therein. Moreover, with a view to abolishing the Conversion Tax for the use of land for Non-Agricultural purpose and the entire Non-Agricultural Tax charged each year, Sections 47, 47-A and Chapter 7 (Sections 108 to Section 120) previously forming part of the Maharashtra Land Revenue Code, 1966 have been omitted and in lieu thereof, Section 47 has been newly incorporated and accordingly, in token of the change of use of land, a lump-sum Conversion Premium shall be charged on the Current Market Value of land determined under the Current Annual Statement of Rates as per slab-wise area of the land. Pursuant to this Amendment, the Government contemplated the matter of issuing Instructions/Directions to all Field Officers/Authorities, as well as all citizens.
Government Resolution:-
A copy of the Maharashtra Land Revenue Code (Second Amendment) Act, 2025 is enclosed herewith. Accordingly, following Instructions/Directions in the nature of Guidelines are hereby issued:-
(1) If under the newly incorporated Section 42 of the Maharashtra Land Revenue Code, 1966, the concerned Planning Authority is entitled to grant Development Permission/sanction Building Plans on any land for any purpose permitted under the Maharashtra Regional and Town Planning Act, 1966, then, a separate Non-Agricultural Permission of the District Collector under the Maharashtra Land Revenue Code, 1966, shall not, henceforth, be required.
(2) For this purpose, the concerned land holder may directly apply to the concerned Authority determined under the provisions of Section 18 of the Maharashtra Regional and Town Planning Act, 1966. The concerned land holder may make such application by online mode under the Building Permission Management System- BPMS and Auto DCR System presently developed by the Department of Urban Development or under such Computer System as the Government may set up, from time to time. Where no online Computer System is in vogue, he may make an offline application as per the Procedure determined by the Department of Urban Development.
(3) Notwithstanding the fact that the land of the Applicant is of Class-1 or Class-2, he shall not be precluded from making an application for Building/Development Permission. However, mere grant of a Building Permission shall not change the status of Occupancy Class-2 or Leasehold land.
(4) Apart from Occupancy Class-1 lands, the other lands are of Prohibited Tenure Type and such lands are held on various Terms and Conditions for a specific purpose under the relevant Acts, Rules or Government Resolutions. In case of change of purpose for the use of such lands or construction thereon, the concerned land holder would be required to obtain the Sanction of the Government or the concerned Competent Officer/Authority under the relevant land related Statutes, Rules or Government Resolutions, wherever necessary, and pay the prescribed Nazrana/Premium before obtaining Development/Building Permission of the Planning Authority as per the provisions of the Maharashtra Regional and Town Planning Act, 1966. If this is not done, then the District Collector or the concerned Competent Authority would not be precluded from initiating action against the said land holders under the provisions of the relevant Acts, Rules or Government Resolutions.
(5) While granting Permission for the Non-Agricultural use of a land the said land holder shall be made to deposit the lump-sum Conversion Premium by the Planning Authority under the Maharashtra Regional and Town Planning Act, 1966 and thereafter Development/Building Permission shall be granted by the Planning Authority.
The Rates of lump-sum Conversion Premium to be charged:-
| (A) | 0.10% on the Current Market Value of land as determined under the Current Annual Statement of Rates for a plot admeasuring up to 1000 Sq. Mt. |
| (b) | 0.25% on the Current Market Value of land as determined under the Current Annual Statement of Rates for a plot admeasuring between 1001 Sq. Mt and 4000 Sq. Mt. |
| (c) | 0.50% on the Current Market Value of land as determined under the Current Annual Statement of Rates for a plot admeasuring 4001 Sq. Mt. and more (more than one Acre). |
(6) The Conversion Premium accruing as above, shall be apportioned between the Local Self-Government Bodies concerned with the operational areas and the Government, as set out below:-
| (A) | Of the Conversion Premium accruing to the Government from the Operational Areas of the concerned “A” Class Municipal Corporations, 30% Conversion Premium Amount shall be paid to the concerned “A” Class Municipal Corporations by the Government. |
| (B) | Of the Conversion Premium accruing to the Government from the Operational Areas of the Municipal Corporations other than “A” Class Municipal Corporations, Municipal Councils and Nagar Panchayats, 50% Conversion Premium Amount shall be paid to the concerned Municipal Corporations, Municipal Councils or Nagar Panchayats by the Government. |
| (C) | Of the Conversion Premium accruing from the Operational Areas of the Village Panchayats, 50% Conversion Premium Amount shall be paid to the concerned Zilla Parishad by the Government. Of the revenue so accruing to the Zilla Parishad, 25% shall be retained by the concerned Zilla Parishad and 25% revenue shall be paid to the concerned Village Panchayat. |
(7) The Government’s share accruing from the Conversion Premium received under the said Proposals should be credited to the Account Head of the Revenue Department viz. “0029 Land Revenue” through GRAS System. Share of the Local Self-Government Bodies in the Conversion Premium shall be credited to the Bank Accounts of the concerned Local Self-Government Bodies.
(8)Since a separate Non-Agricultural Premium under the Maharashtra Land Revenue Code, 1966 would not be required upon sanction by the concerned Planning Authority of a Development Permission/Building Permission/Layout Plan on any land for any permissible purpose under the Maharashtra Regional and Town Planning Act, 1966, a Sanad for Non-Agricultural use would not be required for availing a loan or other facility from any bank/financial institute. Furthermore, any bank/financial institute should not insist upon the same. District Collectors should bring this provision to the attention of all banks/financial institutes within their Operational Areas.
(9) Upon grant of a Development/Building Permission on a land by the Planning Authority under the provisions of the Maharashtra Regional and Town Planning Act, 1966, co-ordination shall be established between the Building Permission Management System- BPMS/Auto DCR or such other System as the Government may set up, from time to time, and Digital 7/12 Computer System and steps will be taken for recording entries in the Revenue Records for the concerned lands. Where no online Computer System is in vogue, the Planning Authority should notify the concerned Tahsildar, separately, in this behalf.
(10) Henceforth, Non-Agricultural Tax chargeable each year on the Non-Agricultural Properties, should not be charged. Moreover, exemption is hereby granted in the recovery of arrears of Non-Agricultural Tax charged, each year, up to the date of this Amendment. However, in case of properties which become Non-Agricultural on or before 31.12.2001, the concerned Property Holders, in lieu of the Non-Agricultural Tax chargeable, each year on the property, would be obliged to pay the Amount of Premium as per the slabs and Rates stipulated in Section 47 of the Maharashtra Land Revenue Code, 1966 (as mentioned in Paragraph 5) on the Current Market Value of land as determined under the Current Annual Statement of Rates corresponding to the year, 2001, within one year of the date of issue of this Government Resolution. Thereafter the said Amount should be recovered with fine and interest.
(11) Moreover, in case of properties which became Non-Agricultural on or after 01.01.2002, the concerned property holders, in lieu of the Non-Agricultural Tax chargeable each year on such properties, would be obliged to pay the Amount of Premium as per the slabs and rates stipulated in Section 47 of the Maharashtra Land Revenue Code, 1966 (as stated in Paragraph 5) on the Current Market Value of land as determined under the Current Annual Statement of Rates corresponding to the date of issue of Development/Building Permission, within one year of the date of issue of this Government Resolution. Thereafter the said Amount should be recovered with fine and interest.
(12) This Government Resolution has been issued with the concurrence of the Department of Urban Development, vide its Informal Reference No:- Pra.Kra.1/2026/NaVi-13, Dated 02.01.2026 and that of the Department of Finance, vide its Informal Reference No:- ANau/06/SaSa, Dated 10.02.2026.
02. This Government Resolution has been made available on the website of the Government of Maharashtra viz. www.maharashtra.gov.in and its Code Number is 202602101741321319. This Resolution is attested and issued under Digital Signature.
By the order and in the name of the Governor of Maharashtra
SANJAY AUDUMBAR DHARURKAR – Digital Signature
[Sanjay Dharurkar]
Deputy Secretary, Government of Maharashtra
Copy:-
[1] The Secretary to the Hon’ble Governor, Maharashtra State, Raj Bhawan, Malbar Hill, Mumbai,
[2] The Principal Secretary to the Hon’ble Chief Minister, Mantralaya, Mumbai,
[3] The Secretary to the Hon’ble Deputy Chief Minister [Urban Development, Housing, Public Works (P.U.)], Mantralaya, Mumbai,
[4] The Secretary to the Hon’ble Deputy Chief Minister (State Excise Duty), Mantralaya, Mumbai,
[5] The Private Secretary to the Hon’ble Minister (Revenue), Mantralaya, Mumbai,
[6] The Private Secretary to the Hon’ble Minister of State (Revenue), Mantralaya, Mumbai,
[7] The Senior Personal Assistant to the Hon’ble Chief Secretary, Mantralaya, Mumbai,
[8] Additional Chief Secretaries/Principal Secretaries/Secretaries in all Mantralaya Departments, Mantralaya, Mumbai,
[9] Divisional Commissioners (All),
[10] The Settlement Commissioner and the Director of Land Records (M.S), Pune,
[11] The Director, Town Planning, Maharashtra State, Pune,
[12] District Collectors (All),
[13] Chief Executive Officers of Zilla Parishads (All),
[14] The Accountant General (Accounts & Entitlement), 1/2, Maharashtra, Mumbai/Nagpur,
[15] The Accountant General (Audit) 1/2, Maharashtra, Mumbai, Nagpur,
[16] All District Treasury Officers,
[17] The State Level Bankers’ Committee, Maharashtra State, Bank of Maharashtra, H.O. Lok Mangal, 1501, Shivaji Nagar, Pune-411 005,
[18] Select File (Desk-Jamin-01A).
———————–
[Text Translated by Adv. Prakash Manohar Chalke
Copyright Reserved]©
———————————
[ANNEXURE]
MAHARASHTRA ACT No. LVII of 2025
[First published, after having received the assent of the Governor in the “Maharashtra Government Gazette” on the 31st December, 2025)
An Act further to amend the Maharashtra Land Revenue Code, 1966.
WHEREAS, it is expedient further to amend the Maharashtra Land Revenue Code, 1966, for the purposes hereinafter appearing; it is hereby enacted in the Seventy-sixth Year of the Republic of India as follows:-
Section 1. Short title.—
This Act may be called the Maharashtra Land Revenue Code (Second Amendment) Act, 2025.
Section 2. Amendment of section 2 of Mah.XLI of 1966.—
In Section 2 of the Maharashtra Land Revenue Code, 1966 (hereinafter referred to as “the said Code”),-
(1) clause (7-A) shall be deleted;
(2) clause (21) shall be deleted.
Section 3. Amendment of section 41 of Mah. XLI of 1966.—
In Section 41 of the said Code, sub-sections (2) to (6) shall be deleted.
Section 4. Substitution of section 42 of Mah. XLI of 1966.—
For Section 42 of the said Code, the following Section shall be substituted, namely:-
“42. No permission of Collector is required for non-agricultural use of land,-
(1) No permission of the Collector for change in use of land from agricultural to non-agricultural is required, if such use is permissible under the draft or final Development Plan or Regional Plan prepared and published as per the provisions of the Maharashtra Regional and Town Planning Act, 1966 or Development Control Regulations or any other rules or regulations or orders or guidelines issued under that Act and, the concerned Planning Authority may give development permission or may give approval to the building plan on such land.
(2) The occupancy status of land other than the Class-I occupancy land shall not be altered merely because the development permission is given or building plan is approved by the Planning Authority on such land.
(3) The Planning Authority shall, before giving development permission or approving building plan, recover one time premium at the rate mentioned in Section 47 for non-agricultural use of land.
(4) Where the Planning Authority grants development permission or approves building plan, necessary changes shall be effected in the revenue records pursuant to such permission or approval.”
Section 5. Deletion of sections 42A, 42B, 42C and 42D of Mah. XLI of 1966.—
Sections 42A, 42B, 42C and 42D of the said Code shall be deleted.
Section 6. Deletion of sections 44, 44A, 45 and 46 of Mah. XLI of 1966.—
Sections 44, 44A, 45 and 46 of the said Code shall be deleted.
Section 7. Substitution of section 47 of Mah. XLI of 1966.—
For section 47 of the said Code, the following section shall be substituted,–
“47. Premium for non-agricultural use of land.—
(1) There shall be levied and collected one-time premium for non-agricultural use of land.
(2) The premium under sub-section (1) shall be levied at the rate of,
(i) for an area up to 1000 square meters, 0.1 per cent. of the current market value of the land determined as per current Annual Statement of Rates;
(ii) for an area above 1000 square meters, but up to 4000 square meters, 0.25 per cent. of the current market value of the land determined as per current Annual Statement of Rates; and
(iii) for an area above 4000 square meters, 0.5 per cent. of the current market value of the land determined as per current Annual Statement of Rates:
Provided that, for the land which has been converted to non-agricultural use on or before the 31st December, 2001, instead of the annual non-agricultural assessment, a one-time premium shall be levied and recovered, at the rate mentioned in sub-section (2) of the current market value of the land determined as per the Annual Statement of Rates of the year 2001:
Provided further that, for the land which has been converted to non-agricultural use on or after the 1st January, 2002 and before the date of commencement of the Maharashtra Land Revenue Code (Second Amendment) Act, 2025, instead of the annual non-agricultural assessment, a one-time premium shall be levied and recovered, at the rate mentioned in sub-section (2) of the market value of such land determined as per the Annual Statement of Rates of the year in which land was converted to non-agricultural use.
Explanation.— For the purposes of this sub-sections, the term “Annual Statement of Rates” shall mean the Annual Statement of Rates published under the provisions of the Maharashtra Stamp (Determination of True Market Value of Property) Rules, 1995 or any other Rules for the time being in force in this regard.
(3) The State Government may, by notification published in the Official Gazette, grant exemption from payment of the premium levied under this section, if the State Government is of the opinion that it is necessary for projects of public purposes or in the public interest.”
Section 8. Deletion of section 47A of Mah. XLI of 1966.—
Section 47A of the said Code shall be deleted..
Section 9. Amendment of section 67 of Mah. XLI of 1966.—
In section 67 of the said Code,–
(1) Sub-section (2) shall be deleted;
(2) In sub-section (4), for the words, brackets and figures “sub-sections (2) and (3)”, the word, brackets and figure “sub-section (3)” shall be substituted.
Section 10. Deletion Chapter VII and sections 108 to 120 of Mah. XLI of 1966.—
Chapter VII and sections 108 to 120 of the said Code shall be deleted.
Section 11. Amendment of section 125 of Mah. XLI of 1966.—
In section 125 of the said Code, the proviso shall be deleted.
Section 12. Amendment of section 328 of Mah. XLI of 1966.—
In Section 328 of the said Code, in sub-section (2),–
(i) in clause (xxiv), for the words, brackets and figures “sub-sections (2) and (3)” the word, brackets and figure “sub-section (3)” shall be substituted.
(ii) clauses (xiv-a), (xiv-aa), (xvi), (xvi-a), (xvii), (xviii), (xxxvii-a), (xxxviii) and (xxxix) shall be deleted.
@@@@@@@@@@