Comprehensive Guide to Non-Agricultural Land Use in Maharashtra

Agricultural land in Maharashtra, traditionally used for growing crops, is increasingly being repurposed for residential, commercial, and industrial projects due to rapid urbanization and industrialization. The Maharashtra Land Revenue Code (MLRC) outlines specific regulations for converting agricultural land to non-agricultural (NA) use. This guide explores the procedure, requirements, and conditions for such conversions.

1. Understanding Non-Agricultural Land Use

Agricultural land, managed by agriculturists, is primarily utilized for farming. However, with urban expansion, there is a growing need to convert such land for building houses, factories, and commercial spaces. The MLRC mandates that such conversions require prior permission from the Collector, ensuring that land use aligns with urban planning and public welfare.

2. Section 44: Land Use Conversion Procedure
2.1. Application for Conversion:

Who Can Apply:


i. Occupants, Superior holders, or tenants of unalienated or alienated land, assessed or held for agriculture, wishing to convert it for non-agricultural purposes.

ii. Those wishing to change the non-agricultural purpose or relax conditions of previous grants.


Application Process:


Submit a formal application to the Collector, including:

i. Certified copy of land records.

ii. Site layout showing the proposed use.

iii. Written consent from relevant parties.

2.2. Collector's Role:

Acknowledgment and Review:


i. Collector acknowledges the application within seven days and may either approve or reject it after due enquiry.

ii. Rejection must be justified in writing, considering public health, safety, and adherence to urban planning schemes.


Deemed Approval:


If the Collector does not respond within ninety days, or within fifteen days for temporary use, the application is deemed approved subject to prescribed conditions.

2.3. Reporting and Compliance:

Commencement of Use:

Notify the Tahsildar through village officers within thirty days of starting the non-agricultural use.


Failure to Notify:

Penalties include fines not exceeding five hundred rupees.


Sanad Issuance:

Upon approval, a sanad (certificate) is granted detailing the conditions for non-agricultural use.

3. Delegation of Powers

Due to the growing workload, some powers have been delegated:


3.1. In Urban Areas: Collector retains authority.

3.2. In Small Towns: Powers are delegated to Sub-Divisional Officers (SDOs).

3.3. In Villages: Powers are given to Tahsildars.

4. Application Format - SCHEDULE - I

It outlines the format for applying for non-agricultural use, requiring detailed information about the land, its current use, proposed use, and compliance with local and regional planning requirements.

5. Factors Considered for NA Permission

A. Applicant’s Details: Rights and entitlements to the land.

B. Land Use and Zoning: Alignment with development plans and zoning regulations.

C. Reservations: Compliance with reservations for public amenities and infrastructure.

D. Safety and Accessibility: Proximity to highways, railways, and other critical infrastructure.

E. High-Tension Lines: Distance from high-tension electrical lines.

6. Terms and Conditions

A. Specific Use: Land must be used solely for the purpose approved.

B. Timeline: Conversion must be implemented within one year, or the permission lapses.

C. NA Assessment: Payment of NA assessment and one-time conversion charges is required.

D. Building Approval: Construction must adhere to approved layouts and local authority permissions.

7. Non-Agricultural Assessment

NA assessment rates are determined based on the land’s market value and are fixed for ten years, with adjustments for local conditions and market trends. Rural areas are classified into different categories affecting the assessment rates.

8. Bonafide Industrial Use

Recent amendments encourage industrial use without prior Collector permission if the land is within an industrial zone. Users must:


i. Inform the Tahsildar and Collector within thirty days of commencement.

ii. Comply with all conditions and submit detailed reports as specified in SCHEDULE VI-A.

9. Sanad for Industrial Use

9.1 SCHEDULE VI-B describes the sanad issued for bona fide industrial use, including:


i. Assessment: Annual payments and conversion tax.

ii. Compliance: Adherence to conditions and regulations.


9.2 Purpose of Use:

The land is authorized for use for bona fide industrial purpose as per the enclosed layout plan.


9.3 Conditions:


a. The land must be used solely for the purpose approved.

b. Conversion charges as per the Maharashtra Land Revenue Code must be paid.

c. The user must comply with all applicable local authority regulations and building codes.


9.4 Validity:

This sanad is valid from the date of issuance and is subject to compliance with the prescribed conditions.

10. Conclusion

Navigating the conversion of agricultural land to non-agricultural use in Maharashtra involves understanding and complying with detailed legal provisions under the MLRC. It is essential to follow the outlined procedures and conditions to ensure lawful and effective land use transitions.


For personalized assistance with land use conversion, the experts at LEOFELIS REALTY can guide you through the process, ensuring compliance and facilitating smooth approvals.

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