Maharashtra Cabinet Revises Land Disposal Policy for Small Plots

The Maharashtra government has expanded the criteria for disposing of small government plots, allowing larger areas to be transferred to adjacent landowners.

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Aapla Nagpur Desk
15 Oct 2026, 12:22 AM IST · 2 min read
Source: TOI
Maharashtra Cabinet Revises Land Disposal Policy for Small Plots
KEY TAKEAWAYS
1

Cabinet increases the small plot size limit from 10% to 25% of adjacent plots.

2

New amendments include previously unusable plots for potential development.

3

Policy changes aim to streamline land use in municipal areas.

In a significant policy shift, the Maharashtra cabinet has approved amendments to the Maharashtra Land Revenue (Disposal of Govt Land) Rules, 1971, aimed at enhancing the disposal of small government plots. This decision, made on Tuesday, comes a year after the initial approval for the disbursement of small, unusable, and inaccessible government lands. The updated provisions are expected to facilitate better land utilization in urban areas.

Historically, the policy allowed for the transfer of small plots to adjacent landholders, but only if the area did not exceed 10% of the total area of the adjacent plot. The recent amendments have increased this limit to 25%, responding to demands from elected representatives for more flexibility in land management. This change is particularly relevant in municipal corporation and council areas, where land scarcity and urban development pressures are significant.

Additionally, the cabinet has included plots that cannot currently support construction within the scope of this policy. These previously unusable plots will remain vacant unless there is a change in development regulations that permits construction. In such instances, the government reserves the right to recover the difference in land value at prevailing rates, ensuring that the state can benefit from any future development potential.

The implications of these amendments are substantial for landowners and developers in Maharashtra. By allowing a larger percentage of adjacent plots to be considered for transfer, the government aims to optimize land use, potentially leading to increased development opportunities in urban areas. This move is expected to address the challenges posed by landlocked and inaccessible plots, which have historically hindered development efforts.

Looking ahead, the government will monitor the implementation of these policy changes and assess their impact on urban development. Stakeholders in the real estate sector and local governance will need to adapt to the new regulations, which are set to reshape land management practices across the state.

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