The Maharashtra cabinet has expanded the state’s policy for disposing of small, unusable, inaccessible or land-locked government plots, allowing eligible parcels to cover up to 25% of an adjacent plot’s area instead of the earlier 10% limit.
The decision, approved on Tuesday, amends provisions of the Maharashtra Land Revenue (Disposal of Government Land) Rules, 1971. The policy applies to areas governed by municipal corporations and municipal councils.
Under the policy approved in August 2025, small government plots could be given to holders of adjoining plots when the government land was unusable, inaccessible or land-locked. The area eligible for disposal was capped at 10% of the total area of the adjacent plot. The latest cabinet decision raises that ceiling to 25%.
The state government said the change followed demands from elected representatives. The amendment broadens the category of government land that may be considered under the disposal policy, but the supplied cabinet announcement does not specify the number of plots affected, the districts involved or the financial value of the land covered by the change.
A second amendment brings plots on which construction cannot currently be carried out within the policy. These parcels will have to remain vacant unless development rules are changed and construction is subsequently permitted.
The government will retain the right to recover the difference between the original amount paid and the prevailing rate if development becomes permissible on such a plot, according to the press release. This provision links any future construction permission to a potential reassessment of the land value.
The policy therefore distinguishes between the transfer or disposal of a small government parcel and the right to build on it. Even where a plot is covered by the amended policy, construction will not be allowed if existing development rules prohibit it. The land must remain vacant until those rules change and construction is permitted.
The decision concerns government land located next to privately held plots and changes the administrative framework for handling parcels that may be difficult to access or use independently. The cabinet announcement does not provide details of the application process, valuation method, approval authority or timelines for individual cases.
The amendments follow the state’s earlier August 2025 policy and expand both the permissible area and the categories of land that may be considered. Implementation will depend on the revised provisions of the Maharashtra Land Revenue (Disposal of Government Land) Rules, 1971 and the conditions attached to each parcel.
