Gunthewari : Relief Likely for Property Owners as Maharashtra Repeals ‘Tukde Bandi’ Law; Over 50 Lakh Families May Benefit

Pune, 25th July 2025: In a major relief for thousands of property owners across urban areas including Pune, the Maharashtra government has officially repealed the controversial Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act (2015 Amendment), commonly referred to as the ‘Tukde Bandi’ law.

The law had imposed restrictions on subdividing land into small parcels, which had stalled the regularisation of numerous properties developed under the gunthewari system—particularly those within the jurisdiction of Pune Municipal Corporation (PMC) and other urban local bodies.

Announcing the repeal during the ongoing monsoon session of the Maharashtra Assembly, Revenue Minister Chandrashekhar Bawankule said the government will now allow regularisation of plots up to one guntha (1,089 sq ft), provided the subdivision took place before the cutoff date of January 1, 2025.

“This decision paves the way for lakhs of families to obtain property titles, building permissions, and legal ownership rights,” Bawankule stated. “We estimate over 50 lakh families across Maharashtra will benefit from this move.”

According to PMC records, the city has nearly 1 lakh properties under its limits that fall under the gunthewari category, but just 800 have been regularised in the past five years due to legal hurdles created by the fragmentation law.

Citizens’ groups welcomed the move but urged the government to revise the cost structure. “While repealing the Act is a step in the right direction, high costs for registration, regularisation, and penalties remain a burden for small property holders,” said Sudhir Kulkarni of the Nagari Hakka Samiti. “Reducing these fees across departments like the Inspector General of Registration (IGR) and local bodies will encourage more people to come forward.”

The gunthewari system refers to land that was subdivided without proper authorisation and often developed with structures, excluding encroached areas. Such plots fall under the ambit of the Maharashtra Gunthewari Development (Regularisation, Upgradation and Control) Act, 2001.

Urban land expert Prasad Hasabnis pointed out that the current charges for regularising these plots are significantly higher compared to those under the older scheme introduced two decades ago. “Many small property owners are simply unable to afford the steep fees. If the state wants mass participation, affordability must be a priority,” he said.

An official from PMC’s building permissions department confirmed that the civic body is awaiting further instructions. “The state has set up a committee to review the implementation process after repealing the law. Based on the committee’s recommendations, we will revise our rules under the Gunthewari Act,” the official said.

With this policy shift, thousands of Pune residents may finally be able to secure legal status for long-pending properties—potentially unlocking both civic infrastructure upgrades and much-needed revenue for local authorities.