Maha abolishes NA permission

🏡 Maharashtra Abolishes NA Permission and Annual NA Tax
Government Resolution dated 10 February 2026

The Revenue and Forest Department of the Government of Maharashtra has issued a significant Government Resolution pursuant to the amendments introduced under the Maharashtra Land Revenue Code (Second Amendment), 2025, effecting substantial reforms in the regulatory framework governing non-agricultural (“NA”) land use within the State.

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1. Dispensation with Separate NA Permission

Where development permission or approval of building plans has been duly granted under the Maharashtra Regional and Town Planning Act, 1966 (“MRTP Act”), the requirement of obtaining a separate NA permission or NA sanad from the jurisdictional Collector under the Maharashtra Land Revenue Code stands dispensed with.

Accordingly, the grant of development permission under the MRTP Act shall be deemed sufficient authorization for non-agricultural use of the subject land.

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2. Abolition of Annual NA Tax and Waiver of Arrears

The annual non-agricultural assessment (NA tax) hitherto leviable on non-agricultural lands has been abolished with immediate effect.

Further, all outstanding NA tax dues up to the date of enforcement of the amendment have been waived, thereby extinguishing existing arrears.

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3. Introduction of One-Time Conversion Premium

In substitution of the recurring NA tax, a one-time conversion premium shall be levied, calculated on the basis of the land area and prevailing market value, at the following rates:

• Up to 1,000 sq. m. — 0.90%

• 1,001 to 4,000 sq. m. — 0.25%

• Above 4,000 sq. m. (approximately 1 acre and above) — 0.50%

The premium shall be payable at the time of conversion and shall constitute full and final discharge of liability towards non-agricultural assessment.

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4. Apportionment of Premium Revenue

The conversion premium collected shall be apportioned between the State Government and the concerned local authority in the following manner:

• Class “A” Municipal Corporations — 30% to the Municipal Corporation

• Other Municipal Councils / Nagar Panchayats — 50% to the local body

• Gram Panchayat areas — 50% to the Zilla Parishad, to be shared equally with the Gram Panchayat

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5. Directions to Banks and Financial Institutions

Banks and financial institutions shall not insist upon production of an NA sanad as a precondition for extending credit facilities, provided that valid development permission under the MRTP Act has been granted.

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Legal and Practical Implications

• Elimination of duplicative approvals under separate statutory regimes.

• Reduction in procedural delays and compliance burden for landholders and developers.

• Replacement of recurring assessment with a transparent, one-time fiscal levy.

• Strengthening of local self-governance institutions through structured revenue sharing.

This reform represents a material shift in Maharashtra’s land administration regime and aligns regulatory processes with the principles of administrative efficiency and ease of doing business.

Source: Government Resolution, Revenue & Forest Department, Government of Maharashtra, dated 10 February 2026.