Maharashtra Assembly Clears Land‑Fragmentation Bill, Grants Legal Ownership to Small‑Plot Dwellers

The Maharashtra legislature passed a bill on December 9, 2025, easing rules under the old fragmentation law. About 60 lakh families on small urban plots will now get legal ownership rights and simplified land transactions.

Mumbai|December 11, 2025:In a landmark move, the Maharashtra Legislative Assembly approved the “Maharashtra Land Revenue Code (Second Amendment) Bill, 2025” on Tuesday, offering relief to millions of small‑plot residents burdened for decades by restrictive laws.

State Revenue Minister Chandrashekhar Bawankule, who presented the bill, said the measure aims to provide legal property rights to about 60 lakh families  nearly 3 crore citizens living on gunthewari or other small fragmented urban plots.

Under the new law, small parcels  even those measuring as low as one guntha (approx. 1,089 square feet) and created before January 1, 2025 will be regularised. Owners will be allowed to buy, sell or transfer such plots freely, and their names can be recorded independently on 7/12 land records.

The amendment also removes the requirement for repeated Non‑Agricultural (NA) use permissions from district collectors in areas covered by approved development or regional plans.Supporters say the bill corrects long‑standing injustices for lower- and middle-income citizens who built homes on small plots but remained unrecognized under law. Minister Bawankule insisted the law isn’t meant to benefit builders, but to legalize genuine residents’ holdings.

Some opposition legislators voiced concern that the measure could benefit real‑estate developers more than ordinary people, especially where city infrastructure roads, drainage  remains inadequate despite plot regularisation.Still, many welcomed the reform as a bold, compassionate step by the state, offering clarity and long-awaited justice to urban small‑plot owners who previously struggled for official recognition.

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