Maharashtra Tables Bill to Remove Non-Farm Use Certificate Requirement for Conversion of Agricultural Land

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The Maharashtra government has made a substantial step toward streamlining land-use procedures. During the winter session, Revenue Minister Chandrashekhar Bawankule presented the long-standing requirement of a non-farm use certificate called Sanad to the Legislative Assembly.

What Is Being Changed?

Until now, landowners in the state seeking to convert agricultural land into non-agricultural use had to navigate a multi-layered approval process. Even after securing the necessary non-agricultural (NA) permission, they still needed to obtain a Sanad — a legal certificate issued by revenue authorities — before legally developing or selling the land. This added layer often resulted in delays, higher costs, and bureaucratic hassles for ordinary landowners.

Under the Maharashtra Land Revenue Code (Second Amendment) Bill, 2025, the requirement to obtain this Sanad will be completely eliminated. Instead, landowners will be required to pay a one-time nominal premium based on the Ready Reckoner rate to regularise the change in land use. The new structure is as follows:

  • Up to 1,000 sq. metres: 0.1% of the Ready Reckoner value
  • 1,001 to 4,000 sq. metres: 0.25% of the Ready Reckoner value
  • Above 4,001 sq. metres: 0.5% of Ready Reckoner value

This premium replaces the need for the Sanad, making the process simpler and more predictable for landowners.

Why This Matters

For decades, the Sanad certificate was seen as a bureaucratic bottleneck that slowed down land conversion and deterred investment and development. Even after earlier reforms between 2014 and 2018 relaxed the NA permission requirement, the Sanad remained a hurdle. The new amendment aims to eliminate that final administrative barrier.

Benefits for Citizens and Landowners

The reform is expected to have several practical benefits:

  • Faster Approvals: Land use change will be processed more quickly without the need for a separate Sanad certificate.
  • Reduced Costs: With a predictable premium based on Ready Reckoner rates, landowners can better plan their finances without multiple fees.
  • Encourages Development: Simplified rules are likely to encourage more residential and commercial development, particularly in peri-urban and rural areas.
  • Ease of Doing Business: By cutting red tape, Maharashtra is aligning its land administration with broader national goals of improving the business environment.

Government Assurances

The state government has clarified that the removal of the Sanad requirement will not impact the revenue of local self-governing bodies — such as municipal corporations and panchayats — which will continue to receive their share of taxes and fees as before.

What Happens Next?

The bill has been tabled in the Assembly and must be passed by both houses of the state legislature and receive the Governor’s assent before becoming law. If enacted, it would mark one of the most significant simplifications of land conversion procedures in the state in recent years.



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