The Maharashtra Land Revenue Code (Second Amendment) Act, 2025(“Amendment Act”) ushers in transformative changes to land use regulations, streamlining the conversion from agricultural to non-agricultural purposes. Published in the Maharashtra Government Gazette on December 31, 2025, this amendment eliminates Collector permissions and shifts authority to Planning Authorities. The Amendment Act marks a pivotal reform in Maharashtra’s land governance framework. By streamlining the conversion of agricultural land to non-agricultural use, it eliminates layers of bureaucratic approvals and integrates revenue processes with urban planning mechanisms. This change aims to accelerate development while imposing a simplified premium structure, benefiting stakeholders amid Maharashtra’s rapid urbanization.

Enacted to further amend the Maharashtra Land Revenue Code, 1966 (“MLRC”), the Amendment Act responds to longstanding demands for efficiency in land use conversions. Prior to the Amendment Act, Section 42 of the MLRC required prior permission from the Collector to convert agricultural land to non-agricultural use or alter non-agricultural land purposes. Sections 42A to 42D, inserted via prior amendments, provided exemptions or deemed conversions for lands aligned with Development Plans or Regional Plans, bypassing Collector approval upon payment of taxes/premiums.

The substituted Section 42 fundamentally reshapes the land conversion regime by eliminating the requirement of Collector’s approval where the proposed non-agricultural use is permissible under the draft or final Development Plan, Regional Plan, Development Control Regulations or other applicable planning guidelines. In such cases, the Planning Authority itself is empowered to grant development permission or approve building plans, and this approval is sufficient to effect lawful conversion of land use. At the same time, the amendment safeguards tenure rights by clarifying that the occupancy status of land, including non-Class I holdings, does not stand automatically altered merely by the grant of development permission. Revenue records are required to be updated to reflect the change in land use after such approval, thereby ensuring administrative alignment without revenue discretion. Collectively, these changes transfer effective control over land use from revenue officials to urban planning institutions, bringing the MLRC into closer alignment with the objectives and structure of the Maharashtra Regional and Town Planning Act, 1966.

Critically, the State has not abandoned its revenue interest. Instead, it has replaced recurring non-agricultural assessment with a one-time premium regime.

Under the substituted Section 47, every non-agricultural conversion now attracts a one-time premium, calculated as a percentage of the market value determined under the Annual Statement of Rates (ASR):

Land Area Premium Rate

Upto 1000 square meters 0.1% of market value determined as per current ASR

1000 - 4000 square meters 0.25% of market value determined as per current ASR

Above 4000 square meters 0.5% of market value determined as per current ASR

The Planning Authority must recover this premium before granting development permission or approving building plans.

One of the most far-reaching aspects of the Amendment Act is how it deals with historical conversions:

If land was converted to NA use on or before 31 December 2001, instead of the annual non-agricultural assessment, one-time premium is charged at 2001 ASR rates.
If conversion occurred between 1 January 2002 and the commencement of the Amendment Act, instead of the annual non-agricultural assessment, one-time premium is charged as per the ASR of the year of conversion.

Broadly, the Amendment Act deletes:

Section 41(2)–(6) – Collector’s powers to regulate and restrict land use
Sections 42A to 42D – multiple types of NA permissions
Sections 44, 44A, 45, 46 – penalties, conditions, cancellation powers
Section 47A – payment of conversion tax for change of user of land
Chapter VII (Sections 108–120) – appeals, revisions and procedural controls relating to land use
Section 125 proviso

These provisions formed the backbone of the revenue-driven control over development. Their deletion means land use is now governed almost entirely by planning law, not revenue law.

While the amendment streamlines land conversion and strengthens planning authorities, its real test will lie in implementation. The success of this reform depends on whether planning bodies discharge their enhanced powers transparently and whether revenue records are synchronised promptly with planning approvals. If administrative silos persist, the promise of a single-window conversion regime may remain aspirational. Nevertheless, the Amendment Act provides the legal foundation for a more rational, predictable and development-oriented land governance system — something Maharashtra has long needed.

The Maharashtra Land Revenue Code (Second Amendment) Act, 2025: A Structural Shift from Revenue Control to Planning Governance