Summary : This guide explains Maharashtra’s 2026 NA rules, the 2025 amendment, development approval, conversion premium, continuing land restrictions and checks before construction or Gunthewari regularisation. It highlights loan documentation and practical legal checks for property owners.
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ToggleLandowners previously approached the Revenue Department for a separate Non-Agricultural (NA) order before using agricultural land for housing or commercial purposes. This could duplicate planning scrutiny and paperwork.
The rules have changed, but every agricultural plot is not automatically buildable. The proposed use must be permitted by the planning framework, and the competent Planning Authority must still grant development or building permission. Tenure restrictions remain.
A separate Non-Agricultural (NA) permission or Sanad from the District Collector is no longer required in Maharashtra if your land’s proposed use is already permitted under a sanctioned Development Plan (DP) or Regional Plan (RP).
The landmark Maharashtra Land Revenue Code (Second Amendment) Act, 2025 (notified on December 31, 2025) and the subsequent Government Resolution (GR) dated February 10, 2026 overhauled the state’s land conversion rules. Section 42 also covers draft plans and applicable development control regulations, so each plot must be checked with its Planning Authority.
Under amended Section 42, owners apply to the competent Planning Authority for development permission, layout approval or building plan sanction. Where the proposed use is permissible, the Authority processes the application without a separate Collector NA order. It collects the one-time conversion premium before granting permission and initiates revenue-record changes after approval.
The reform replaces annual NA assessment with a one-time premium. The February 2026 GR says a separate NA Sanad is not required for a bank loan once relevant development, building or layout permission is sanctioned. Banks and financial institutions should not insist on it in such cases.
First, verify the land’s zoning and proposed use against the DP/RP, development regulations and planning rules. Identify the competent Planning Authority. Applications and premium payments may be handled through BPMS, AutoDCR or another notified system, depending on local arrangements.
Submit ownership records, survey details and the proposed layout or building plan. The authority checks planning compliance, access, building rules and applicable NOCs. It calculates the premium using the relevant Annual Statement of Rates and plot-area slab. After payment and sanction, revenue-record entries are made. NA exemption does not replace building permission. Payment alone does not permit construction.
Section 47 sets a one-time premium on land value determined under the Annual Statement of Rates or Ready Reckoner:
For new conversion, current rates apply. For land converted before 31 December 2001, 2001 rates apply. For land converted from 1 January 2002 until commencement of the amendment, the rates for its conversion year apply. These are premium rates, not the full approval cost; scrutiny, development, infrastructure and other charges may be additional.
The February 2026 GR gives owners of previously converted NA properties one year from 10 February 2026 to pay the premium in place of annual NA assessment. The period ends on 10 February 2027. Confirm the calculation and payment instructions with the authority; do not assume earlier dues have disappeared. Ask for written calculation before payment, especially for older or disputed properties.
Existing NA orders and Sanads remain valid. Keep them with title papers, plans, receipts and tax records as evidence of approval history. The reform removes the need for a fresh Sanad where the planning route applies; it does not cure title, layout or construction defects.
Development permission does not change the occupancy status of Class II, leasehold or other restricted-tenure land. Where grant conditions, tribal protections, government allotment terms or another law require prior consent, Nazrana or premium, those requirements remain before development approval.
The proposed use must be allowed by the planning framework. If zoning does not permit it, the amendment is not automatic approval. Separate permissions may be needed for access, fire safety, environment, highway access, water, drainage or site-specific matters. The April 2026 circular says penal proceedings begun before the amendment for unauthorised NA use should continue. No work can begin without required sanctions.
Keep the latest 7/12 extract, Property Card where applicable, sale deed, mutation entries, survey plan, layout, building drawings and previous permissions ready. Gather any NA order, Sanad, NOCs, tenure documents and payment receipts. Ask the authority to confirm permitted use, premium and required approvals. Confirm whether fresh measurement is necessary.
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Generally, no, if the use is permissible and the Planning Authority grants development or building permission.
A separate Collector order may not be needed, but residential use must be allowed and building permission obtained before construction.
The February 2026 GR says a separate Sanad should not be required after planning permission is sanctioned. Other lender checks continue.
Annual NA assessment is replaced by a one-time conversion premium. Previously converted properties may still owe that premium.
Applications can be considered, but permission does not change Class II status. Tenure permissions and premiums remain applicable.
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