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Maharashtra to unlock 173,560 hectares by granting ownership rights to lessees
The Maharashtra government approved a policy to convert Occupancy Class II land into full ownership (Class I) for 173,560 hectares allocated decades ago to landless individuals, by paying a conversion premium. The move builds on a 2016 policy expansion and affects 109,868 beneficiaries.
Why It Matters
The policy is expected to improve land liquidity, support development, and generate revenue for the state exchequer by enabling ownership transfer.
Timeline
3 Events
Article published detailing cabinet decision and policy implications
April 23, 2026
Reporting on the cabinet decision, the article states that 173,560 hectares have been allocated to 109,868 beneficiaries, with ownership rights conditional on conversion premiums; the policy extends ownership rights for occupancies previously restricted to agricultural use and highlights expected benefits in land liquidity, development, and state revenue.
Cabinet approves policy to convert acquired holdings to Class I ownership
April 22, 2026
In a state cabinet meeting, Maharashtra approved unlocking 173,560 hectares by granting full ownership rights to lessees on payment of a conversion premium. The parcels are to be converted from Occupancy Class II to Class I ownership for 109,868 beneficiaries. The conversion premium is up to 30% of land value as per the ASR, with premiums varying by land status and usage: if still with the original lessee, 25% in rural areas and 30% in urban areas; if transferred and in an urban area, 30% for agricultural land and 25% for non-agricultural land.
Policy groundwork: Ownership rights for Occupancy Class II land began in 2016
2016
From 2016, the Maharashtra government started granting ownership rights to Occupancy Class II land reserved for residential, commercial and industrial use, laying the groundwork for broader conversion to Class I ownership.