Maharashtra streamlines land conversion, drops Collector-level NA approval

In a major reform aimed at easing land conversion and construction approvals, the Maharashtra government has scrapped the long-standing requirement of obtaining separate Non-Agricultural (NA) permission for converting agricultural land for non-farm use.

Under the revised framework, approval of a building plan by the Town Planning Department or the local planning authority will be treated as deemed NA permission. Developers and landowners will no longer be required to seek a separate clearance from the District Collector for converting agricultural land.

The decision, notified through a Gazette amendment to the state’s revenue laws, follows directions from Chief Minister Devendra Fadnavis and is being positioned as a structural simplification of Maharashtra’s land administration regime.


The move eliminates duplication in approvals and integrates land-use conversion with the construction permission process. The earlier system required applicants to first secure NA status and subsequently obtain building approval, often resulting in procedural delays.

The government has also abolished the annual non-agricultural tax levied after conversion. In its place, a one-time ‘conversion premium’ will be charged in slabs linked to the land’s market value. The shift replaces recurring yearly payments with an upfront charge at the time of conversion.

In another significant change, the requirement of obtaining a sanad, a formal revenue certificate issued post-conversion for availing bank loans has been removed. The sanad was widely viewed by industry participants as adding to compliance timelines, particularly in project financing.

The reform package further mandates digital integration of approvals. Applications for building permission can be filed online through BPMS or AutoDCR platforms. Once permission is granted, mutation entries in the 7/12 land records will be automatically updated through the Revenue Department’s computerized system, reducing manual intervention.

According to industry experts, the changes are aimed at compressing approval timelines, improving coordination between revenue and planning authorities, and enhancing transparency in land record management.

The amendments are expected to have implications for urban expansion, housing supply and project execution across Maharashtra.