Maharashtra Orders Free Regularisation Of Small Land Parcels Benefiting Millions Statewide

Maharashtra has announced a major policy shift aimed at clearing long-pending irregularities in small land holdings, a move expected to provide legal clarity and relief to millions of property owners across the state. The state’s revenue authorities have introduced a free regularisation process for plots purchased in violation of the Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act, addressing an issue that has remained unresolved for decades. The reform is forecast to benefit nearly three crore people, significantly widening access to secure land titles and formal property ownership.

According to senior officials, the government’s decision will remove restrictive entries from the 7/12 land records, enabling eligible landholders to regularise their titles without paying penalties previously mandated under the law. Earlier provisions required property owners to pay up to 25% of the land’s market value as regularisation fees, a cost that was later reduced but still deterred many households. The latest move eliminates all charges, reflecting the state’s effort to improve administrative efficiency and reduce economic burdens on citizens. The updated procedure applies to transactions executed between November 1965 and October 2024, covering thousands of informal and semi-formal land deals across urban, semi-urban and rural regions. Government departments, including district collectorates, planning authorities and land record offices, have been issued detailed instructions following the release of an official government notification earlier this month.

Authorities confirmed that the policy covers land parcels located within the jurisdiction of major planning bodies such as the Mumbai Metropolitan Region Development Authority and similar agencies in Pune and Navi Mumbai. It also extends to cantonment zones, non-agricultural belts identified in regional plans and areas adjoining village gaothans. Officials emphasised that the change will particularly benefit low- and middle-income households that historically relied on informal transactions due to high costs or lack of documentation. A key provision enables the reinstatement of cancelled mutation entries. Once verified and approved, landholders will have their names shifted to the “occupant” category in the 7/12 extract, replacing older classifications that restricted ownership rights. Notes citing violations under the Fragmentation Act will also be removed. For unregistered transactions, local land officers will encourage citizens to complete registration after paying the applicable stamp duty, ensuring that legal validity extends to plots bought through notarised agreements or stamped papers.

Industry observers say the reform could significantly strengthen property rights in Maharashtra, where fragmented land dealings have long complicated urban planning, infrastructure delivery and equitable access to land. Improving record transparency is also expected to support sustainable development goals by reducing land disputes, streamlining redevelopment proposals and promoting secure housing for vulnerable groups. Officials clarified that once regularisation is completed, there will be no subsequent restrictions on sale, transfer or redevelopment of the plots. For many families, this marks the first opportunity to gain full ownership recognition, bridging a legal gap that persisted for nearly six decades.

Maharashtra Orders Free Regularisation Of Small Land Parcels Benefiting Millions Statewide