Maharashtra govt decentralises land approval powers to speed up projects

The Maharashtra government has expanded the powers of district collectors and divisional commissioners for approving transactions involving government land, a move aimed at reducing procedural delays and accelerating investment and redevelopment projects across the state.

In a government resolution (GR), the Revenue and Forest Department revised the delegation of powers under Section 37A of the Maharashtra Land Revenue Code, 1966, allowing district-level and divisional authorities to clear a wider range of land-related proposals without requiring approval from the state government.

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The decision comes as the state seeks to improve ease of doing business and expedite approvals for industrial, infrastructure, housing and urban redevelopment projects.

Under the revised framework, district collectors will be empowered to approve cases involving premium or unearned income of up to Rs 20 lakh. Divisional commissioners will be authorised to approve proposals involving premium or unearned income exceeding Rs 20 lakh and up to Rs 20 crore.

Section 37A governs transactions involving government land, including transfer, sale, redevelopment, change of land use, grant of additional floor space index (FSI), transfer of development rights (TDR), and other transactions that result in the payment of premium or unearned income to the government.

According to industry experts, the move is expected to shorten approval timelines for many projects that previously required clearance from higher authorities, often leading to prolonged processing periods.

“As decision-making powers will now be available at the local level, disposal of cases will become faster, land transactions will gain greater clarity, uncertainties relating to land titles will be reduced, and investments will receive a boost. Consequently, development projects will progress more rapidly and contribute to employment generation,” said Prakash Baviskar, president of the NAINA Builders Association.

This decision is expected to be positive for housing, redevelopment, industrial, commercial, and infrastructure projects across Maharashtra, he added.

The revised delegation is particularly significant for redevelopment and urban renewal projects in Mumbai and other major cities, where a substantial portion of land parcels involve government ownership or occupancy rights and require approvals under Section 37A.

According to the GR, all pending and future proposals falling within the revised monetary limits will be processed by the designated authorities. The government has also directed officials to ensure prompt disposal of cases and avoid unnecessary delays.

The latest reform forms part of the state government’s broader efforts to decentralise administrative decision-making and improve efficiency in land administration. Faster approvals are expected to benefit developers, industrial units and public infrastructure projects by reducing transaction timelines and improving certainty around project execution.

The revised framework would also help reduce the administrative burden on the state government by enabling routine cases to be resolved at the district and divisional levels while allowing higher authorities to focus on more complex matters involving larger financial implications.