Maharashtra Government Approves Free Regularisation of Small Land Plots

The Maharashtra government has taken a historic step to regularise thousands of small land transactions that were previously in violation of the state’s fragmentation law. This reform, which waives all fees for eligible property owners, is set to benefit nearly 60 lakh citizens and provides long-awaited legal clarity to landowners across urban, semi-urban, and peri-urban areas. With this initiative, the state has introduced the Maharashtra government's free regularisation of the small plot scheme, a move that resolves decades-long ambiguities around property ownership.

Background: Fragmentation Law and Past Challenges

For decades, small plot transactions that violated Maharashtra’s fragmentation law remained in legal limbo. Property owners who wished to regularise their plots previously had to pay significant penalties, initially 25% of the land’s current market value, later reduced to 5%. Despite the reduction, uptake remained low due to financial constraints and procedural complexities. Many plots remained unregistered or disputed, leaving owners without secure property rights.

The Maharashtra government's free regularisation of small plot initiative now closes this long-standing regulatory gap, ensuring that property owners can finally claim legal recognition for plots that have been in uncertain ownership for years.

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Scope of the Free Regularisation

The reform applies to all transactions conducted between November 15, 1965, and October 15, 2024. Under the new framework, the government will remove the remark “transaction in violation of the fragmentation law” from land records. Authorities have been instructed to update the 7/12 extracts to reflect lawful ownership, ensuring that primary occupants are officially recognised.

Even mutation entries that were previously cancelled will now be reconsidered, allowing rightful owners to be recorded in the main occupancy column. This ensures that past buyers, who may have faced administrative hurdles, are fully recognised as legitimate property holders.

Regularisation of Unregistered Deals

The scheme also extends to unregistered transactions, where buyers may have purchased land through notarised documents or stamp papers but did not complete formal registration. Talathis and circle officers will actively encourage citizens to register these deals, pay stamp duty, and update the records. Once the process is complete, names will be officially recorded in the 7/12 extracts, further strengthening property ownership rights under the Maharashtra government's free regularisation of small plot scheme.

Geographic and Legal Coverage

The reform covers land parcels across Maharashtra, including:

• Areas under MMRDA, PMRDA, and NMRDA
• Cantonment zones
• Residential and commercial belts
• Non-agricultural and peripheral village-adjacent zones

After regularisation, property owners will have the freedom to sell or transfer plots without restrictions, ensuring full legal recognition and transferability.

Benefits for Citizens

The initiative brings multiple benefits:

• Legal Security: Owners gain official recognition and protection of their property rights.
• Financial Relief: Waiving fees removes financial barriers to regularisation.
• Urban Development: Cleared legal status allows land to be included in township and urban expansion projects.
• Peace of Mind: Families no longer have to worry about ownership disputes or technical violations.

For middle-class households and small plot holders, this represents a major step forward in securing long-term investment in land.

Government Statements and Vision

Revenue Minister Chandrashekhar Bawankule highlighted the importance of the reform, noting that it resolves a long-pending issue affecting millions of people across the state. “This historic decision ensures that citizens will no longer face legal obstacles due to old technicalities. Nearly three crore people stand to gain from it,” he said.

The government’s vision is clear: strengthen property rights, encourage urban development, and simplify land administration while providing legal clarity to small landholders.

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Steps for Property Owners to Avail Free Regularisation

Property owners looking to benefit from this scheme should:

1. Verify eligibility for plots transacted between November 1965 and October 2024.
2. Approach local talathis or circle officers to initiate the regularisation process.
3. Complete deed registration for unregistered transactions and pay stamp duty.
4. Ensure 7/12 extracts and mutation entries are updated to reflect legal ownership.

Following these steps ensures smooth completion under the Maharashtra government's free regularisation of small plot initiative.

Conclusion

The Maharashtra government’s new initiative marks a significant milestone in the state’s real estate and land administration landscape. By waiving fees and granting legal recognition to long-disputed small plots, this free regularisation of the small plot scheme secures property rights for millions, boosts confidence in real estate transactions, and enables urban and township growth. Citizens now have the opportunity to formalise ownership, resolve historical disputes, and participate in Maharashtra’s evolving real estate market with confidence.