Maharashtra Government Simplifies Land Conversion Process
The real estate sector in Maharashtra is set to get a boost with the Maharashtra government planning to ease the process of land conversion from agricultural land to non-agricultural land. The process is being simplified in both cities and towns.
Maharashtra government simplifies conversion process
The state government, on July 16, simplified the process for the direct owners to convert their agricultural lands in both cities and towns that have been earmarked for development in the region’s development plan (DP) for housing and industrial units. According to the earlier process, land-owners had to obtain permission from the collector for this conversion. This had led to problems of corruption and unnecessary delays. Simplification of the conversion process is expected to solve both the problems, as well as unlock a significant land parcel for development purposes.
According to the new process, land-owners will now have to obtain permission from the municipal body for non-agricultural plans. Once the permission is obtained from the municipal corporation or council, the land-owner needs to only intimate the collector within 30 days. The land-owner will not need any permission from the collector. The revenue officials will collect a one-time non-agricultural cess and land conversion tax. In rural areas where there are no municipal councils or corporations, databanks will be created for conversion applications.
This new process is however applicable for only direct land-owners. Farmers who have leased the land from the government will still have to obtain permission from the collector. According to officials, they will have to offer a share of the profitable deal to the government.
What it means for Mumbai realty?
The simplification process will hugely benefit the municipal corporations and councils of Mumbai, Navi Mumbai, Thane, Ulhasnagar Kalyan-Dombivli, Vasai-Virar, Panvel, Badlapur, Alibaug, Ambernath and Nalasopara among others. This means that there will be more land parcel available for development in the Mumbai Metropolitan Region (MMR), both for industrial and residential development.
One of the key reasons for the skyrocketing prices in Mumbai is the increasing demand for housing and limited availability of land parcel for development. This move from the government is expected to provide a good space for development, while controlling the property values.
