The Maharashtra government has permanently scrapped the non-agricultural (NA) tax, a move expected to speed up redevelopment and regularisation of older housing societies in cities such as Mumbai, Pune and Thane. State revenue minister Chandrashekhar Bawankule announced on Wednesday that the decision was taken under the direction of Chief Minister Devendra Fadnavis, nearly eighteen months after it was first proposed.
A notification issued on Tuesday amends the Maharashtra Land Revenue Code, removing both the annual NA tax and the requirement to obtain separate non-agricultural land-use permission from the district collector. “This is applicable provided the proposed land use is permissible under the applicable development plan, regional plan or development control regulations,” an official said.
Suhas Patwardhan, president of the Maharashtra State Cooperative and Apartment Association, welcomed the change. “The issue was kept pending across four different govts. We had also demanded that the steep hike in this tax over the past two decades, along with penalties and interest, be waived. A petition was filed in the high court in this regard. We will now take an appropriate decision post this GR,” he said.
Advocate Shreeprasad Parab said, “The graded and rational one-time premium structure safeguards public revenue while freeing housing societies and landowners from recurring and often disputed revenue demands. This is not just a fiscal change, it is a structural correction that restores fairness and certainty, benefiting lakhs of citizens.”
Advocate Satya Muley added, “From now on, no collector approval will be needed for NA conversion if the land lies within a development plan or regional plan and is already designated for non-agricultural use under the sanctioned DP/RP or the applicable development control rules.”
However, Muley objected to retrospective premiums, stating, “A one-time premium will be levied on lands converted within the past 25 years — 0.10% of ready reckoner rates for plots up to 1,000sqm, 0.25% for 1,000-4,000sqm, and 0.50% for plots above 4,000sqm. This arbitrary provision will cause injustice to many landholders. We have urged govt to withdraw it, and if not, we will challenge it in the HC,” Muley said.
Bawankule said, “Landowners no longer require this certificate for bank loans, property transactions or other legal purposes. These measures are expected to boost real estate and industrial activities, resolve legacy issues for plot owners including those in gunthewari and small parcel areas, enhance transparency through digital integration and discard British era law,” Bawankule said.
Source: The Times of India
