By- Srija Kumar
In a newly introduced reform aimed at accelerating urban renewal, the Maharashtra government has permanently done away with the non-agricultural tax ending the long-standing requirement of obtaining a separate NA conversion order.
Revenue Minister Chandrashekhar Bawankule said the decision was taken under the able guidance of Chief Minister Devendra Fadnavis. This reform was formalised through amendments to the Maharashtra Land Revenue Code making it one of the most significant changes to land administration in recent years.
For decades, property holders who converted agricultural land for residential, commercial or industrial use had to pay a recurring NA assessment every year. That system will now end. In it’s place, the government will charge a one-time conversion premium, pegged to a percentage of the land’s prevailing market value and structured in slabs based on plot size. All pending NA tax arrears up to the date of the notification have been waived, providing immediate relief to thousands of landowners and housing societies.
The reform also removes what developers often described as a redundant layer of bureaucracy. Approval of building plans by planning authorities – municipal corporations, councils or the town planning department will automatically be treated as NA permission. Land records are to be updated digitally once construction approvals are granted. This shall help in reducing paperwork and the need for repeated visits to revenue offices.
The biggest impact will be felt in cities with old cooperative housing societies that were awaiting redevelopment. For cities such as Mumbai, Pune and Thane, any procedural delays linked to NA status have frequently slowed projects, in turn complicating financing and triggered disputes between residents, builders and authorities.
Real estate stakeholders have also welcomed the decision, stating that replacing an annual levy with a single upfront charge brings predictability. This also reduces long-term compliance issues. Many describe it as the end of an outdated system that had survived from an earlier administrative era.
Observers state that the conversion premium could still be substantial for larger land plots. The effectiveness of the reform will depend on how smoothly departments implement digital updates and timelines for approvals.
For residents who were waiting to see ageing buildings rebuilt, the policy offers a clear signal that the state wants redevelopment to move faster.