Mumbai: In a landmark reform aimed at simplifying land conversion procedures and reducing bureaucratic hurdles, the Maharashtra Government has abolished the requirement of obtaining separate Non-Agricultural (NA) permission for converting agricultural land for non-agricultural use.
Announcing the major decision on Wednesday, Revenue Minister Chandrashekhar Bawankule said that approval of the building plan by the Town Planning Department or the local planning authority will now be deemed as NA permission. Citizens will no longer be required to seek a separate clearance from the District Collector, a move expected to significantly cut delays and red tape.
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The reform, implemented under the directions of Chief Minister Devendra Fadnavis, has been formalised through amendments to the Maharashtra Land Revenue Code, and a gazette notification has already been issued. In another major relief, the State Government has also abolished the annual non-agricultural tax.
“Until now, even after receiving building plan approval from the planning authority, citizens had to approach the District Collector for separate NA permission. This duplication has now been removed,” Bawankule said. He clarified that if the proposed land use is permissible under the sanctioned Development Plan, the building permission itself will automatically serve as NA approval.
The government has further directed banks not to insist on a separate NA certificate while sanctioning loans, once building permission has been granted by the competent planning authority, a step likely to ease financial transactions and boost real estate activity.
In a significant relief measure, recovery of pending non-agricultural tax arrears up to the date of this reform has been waived. However, landholders whose properties were converted for non-agricultural use before or after 2001 will be required to pay a one-time conversion premium at prescribed rates within one year from the date of the decision.
Under the new system, applications for building permission can be submitted online through the Building Plan Management System (BPMS) or Auto Development Control Regulations (Auto-DCR). Once approval is granted, the land-use change will be automatically updated in the 7/12 extract through the Revenue Department’s computerised system, ensuring transparency and faster processing.
The government has clarified that obtaining building permission will not alter the status of ‘Occupant Class-II’ lands, and applicable nazarana charges will continue to apply separately.
Replacing the earlier annual NA tax system, the State will now levy a one-time conversion premium based on the market value of the land, structured in slabs.
Bawankule said the reform framework was finalised during the Winter Session of the State Legislature and described the move as a major step towards administrative simplification, transparency, and providing tangible relief to citizens.
The decision is expected to streamline land-use conversion across Maharashtra, boost investment, and reduce procedural bottlenecks that have long been a source of public grievance.
