Maharashtra Government Repeals Fragmentation Act in Urban Areas

November 7, 2025

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Maharashtra Government Repeals Fragmentation Act in Urban Areas

In urban and regional planning areas, the Maharashtra government has revoked the Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act. The decision aims to regularise small land parcels and simplify land transactions across cities and towns.

Details of the Decision

According to the new amendment, the provisions of the Fragmentation Act will no longer apply to non-agricultural (NA) lands located in urban areas, municipal corporations, municipal councils, and metropolitan development authority regions.

Land transactions carried out between November 15, 1965, and October 15, 2024, will be considered for regularisation. The rule also covers plots up to one guntha (approximately 1,089 square feet) that were subdivided before the cut-off date.

A four-member committee has been appointed to prepare a SOP ( Standard Operating Procedure )for the implementation of the decision. The SOP will outline the process for regularisation, documentation, and verification of eligible land parcels.

Impact on Landowners

The repeal of the Act is expected to provide legal recognition to subdivided plots that were earlier restricted under the 1947 law. Landowners whose plots were previously considered fragmented will now be able to apply for ownership regularisation.

The amendment will allow transactions, registration, and approvals for such plots in accordance with development authority rules and regulations.

Purpose of the Reform

The Fragmentation Act was originally introduced to prevent the division of agricultural land into uneconomic holdings. However, with the expansion of urban areas, many lands previously governed under the Act are now part of municipal or development plan zones.

The latest amendment separates urban non-agricultural lands from the scope of this Act, allowing them to be managed under existing urban planning and development laws.

Implementation

The State Government has directed local authorities and development bodies to follow the upcoming SOP for processing applications related to fragmented land parcels. Only plots created before October 15, 2024, will be eligible under this regularisation process.

The decision is applicable across all urban and regional plan areas in Maharashtra.