Maharashtra Ends Separate NA Permission for Land Conversion; Annual NA Tax Abolished

Pune, 12th February 2026: In a major administrative reform, the Maharashtra government has removed the requirement of obtaining a separate Non-Agricultural (NA) permission for converting agricultural land for non-agricultural use. The decision has been notified through a government gazette following instructions from Chief Minister Devendra Fadnavis, with Revenue Minister Chandrashekhar Bawankule implementing the reform.

Under the amended provisions of the Maharashtra Land Revenue Code, approval of a building plan by the Town Planning Department or the concerned local planning authority will now be treated as NA permission. Landowners will no longer need to approach the District Collector separately for NA approval.

Earlier, even after securing construction permission from the planning authority, applicants had to seek a separate NA sanction from the Collector’s office, a dual process that often led to delays. Under the new rule, if the proposed land use is permitted under the Development Plan, the construction approval itself will automatically serve as NA clearance.

The government has also introduced system-based reforms. Once building permission is granted, the change in land use will be automatically recorded in the 7/12 extract through the Revenue Department’s computerised system. However, the government clarified that this reform will not change the status of Occupant Class-II landholders, who will still be required to pay the applicable premium (nazarana charges).

Banks often insist on an NA sanad before sanctioning loans. The government has now clarified that once a planning authority grants building permission, banks should not demand a separate NA certificate. District Collectors have been directed to inform all banks about the new guidelines.

In another key decision, the state has abolished the annual Non-Agricultural (NA) tax. Pending NA tax dues up to the date of this government resolution have been waived. However, landowners whose lands were converted to non-agricultural use before or after 2001 will have to pay a one-time conversion premium within one year from the date of notification.

Instead of the yearly NA tax, a slab-based one-time conversion premium will now be charged based on the land’s prevailing market value:
Up to 1,000 sq m: 0.10% of the current market value
1,001 to 4,000 sq m: 0.25% of the current market value
Above 4,000 sq m: 0.50% of the current market value

The government said the move aims to reduce paperwork, eliminate duplication of permissions and provide relief to landowners, while improving the ease of doing business in Maharashtra.