State to unlock 173k hectares by offering ownership rights

These land parcels were allotted nearly six decades ago primarily to landless individuals especially farmers, ex-servicemen and individuals from weaker sections with Occupancy Class II rights for cultivation. They are land parcels acquired by the state under the Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 1961

MUMBAI: In a significant policy shift, the Maharashtra government will unlock more than 173,560 hectares of land by granting full ownership rights to the lessees on payment of a premium. The decision was taken in the state cabinet meeting on Wednesday.

State to unlock 173k hectares by offering ownership rights

These land parcels were allotted nearly six decades ago primarily to landless individuals especially farmers, ex-servicemen and individuals from weaker sections with Occupancy Class II rights for cultivation. They are land parcels acquired by the state under the Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 1961.

From 2016, the state government began granting ownership rights to Occupancy Class II land reserved for residential, commercial and industrial use. For the first time, the government has extended a formal policy framework to convert acquired holdings into full ownership (Class I), thereby removing long-standing limitations.

Under the new policy, beneficiaries can obtain ownership rights by paying a conversion premium of up to 30% of the land’s value, calculated as per the Annual Statement of Rates (ASR). This move is expected to enhance land liquidity, enable development and provide revenue to the cash-strapped state exchequer.

Additionally, for any transfer of such land, prior permission of the district collector was mandatory, and an unearned income charge, which was 50% to 75% of ASR, had to be paid each time. Even after such transfers, the land continued to remain under Occupancy Class-II status.

“The state government has distributed a total 173,560 hectares to 109,868 beneficiaries, who will benefit with this decision,” said a senior official from the state revenue department.

However, the premium varies based on the current status of the land. “If the land is still with the original lessee, the premium is 25% of ASR for granting Class-I in rural areas and 30% is urban areas. If the land was transferred and if it lies in an urban area, the lessee will have to pay 30% of ASR for agricultural and 25% for non-agricultural land, the official said.