The Maharashtra government has changed the method used to calculate the additional 12% annual payment made to landowners during land acquisition, reducing the base on which the payment is computed.
Under the revised approach, the 12% component will be calculated on the market value determined under Section 26(1) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The earlier practice of applying the multiplier prescribed under Section 26(2) before calculating the additional amount will no longer be followed.
The Revenue Department issued a Government Resolution on September 10, 2026, replacing instructions issued on October 28, 2016. Officials said the change follows a request from the Maharashtra State Road Development Corporation (MSRDC), which is undertaking land acquisition for major projects including the Virar-Alibaug corridor and proposed Shaktipeeth Expressway.
According to officials, the revised method is intended to bring greater clarity and consistency to calculations and reduce disputes and litigation during acquisition proceedings.
For example, if land has a basic market value of Rs 1 crore and a multiplier of two applies, the previous method would calculate the 12% payment on Rs 2 crore. This would result in an annual additional payment of Rs 24 lakh. Under the revised formula, the 12% amount would instead be calculated on Rs 1 crore, resulting in Rs 12 lakh annually.
The 2013 law provides for the additional 12% payment from the date of publication of the acquisition notice until possession of the land is taken, or the earlier applicable point under the law.
The government’s latest circular states that the additional amount under Section 30(3) will henceforth be calculated only using the market value determined under Section 26(1), excluding the Section 26(2) multiplier from this specific calculation.
Officials said the revised framework is expected to standardise the process as Maharashtra undertakes large-scale land acquisition for infrastructure projects.
Source: The Indian Express
