The Maharashtra government has enhanced the authority of district collectors and divisional commissioners to approve government land transactions. This initiative aims to minimize bureaucratic delays and accelerate investment and redevelopment initiatives throughout the state.
As stated in a government resolution (GR) from the Revenue and Forest Department, the delegation of powers under Section 37A of the Maharashtra Land Revenue Code, 1966 has been updated. This allows district-level and divisional authorities to authorize a broader range of land-related proposals without needing state government approval.
The move is designed to improve the business environment and hasten approvals for industrial, infrastructure, housing, and urban redevelopment projects. Under the new structure, district collectors can now authorize cases involving premium or unearned income of up to Rs 20 lakh, while divisional commissioners can approve proposals exceeding Rs 20 lakh and up to Rs 20 crore.
Section 37A regulates transactions involving government land, including transfers, sales, redevelopment, changes in land use, grants of additional floor space index (FSI), transfers of development rights (TDR), and other transactions resulting in the payment of premium or unearned income to the government.
Industry experts believe this change will notably shorten approval timelines for numerous projects previously requiring higher authority clearance, which often extended processing times. Prakash Baviskar, president of the NAINA Builders Association, stated, “With decision-making powers localised, case processing will expedite, clarity on land transactions will improve, uncertainties regarding land titles will diminish, and investments will surge. Consequently, development projects will advance sooner, generating employment.”
This reform is expected to benefit housing, redevelopment, industrial, commercial, and infrastructure projects throughout Maharashtra.
The new delegation is especially crucial for redevelopment and urban renewal efforts in Mumbai and other major cities, where significant government-owned land parcels necessitate approvals under Section 37A.
The GR specifies that all pending and future proposals that meet the revised monetary limits will be processed by the designated authorities. The government has instructed officials to ensure timely resolution of cases to prevent unnecessary delays.
This reform is part of a broader initiative by the state government to decentralise administrative decision-making and enhance efficiency in land administration. It is anticipated that faster approvals will benefit developers, industrial entities, and public infrastructure projects by shortening transaction timelines and increasing certainty regarding project execution.
The revised framework will also alleviate the administrative load on the state government by delegating routine matters to district and divisional authorities, allowing higher authorities to focus on more complex issues with significant financial implications.
