aerial view of farmland meeting the boundary of an early stage plotted development in maharashtra
CategoriesLand Investment

Key Takeaways

  • Deemed NA (“auto-NA”) means agricultural land can be used non-agriculturally — without a separate Collector conversion order — when the intended use is already permissible under the area’s Development Plan or Regional Plan.
  • The mechanism was overhauled by the Maharashtra Land Revenue Code (Second Amendment) Act, 2025, which substituted Section 42 of the MLRC, 1966 and repealed the older “deemed conversion” provisions (Sections 42A–42D) and the sanad/NA-permission machinery (Sections 44, 44A, 45, 46, 47A).
  • Under the new Section 42, if the NA use conforms to the draft or final DP/RP and building regulations, no separate Collector permission is needed — the Planning Authority’s development/building-plan approval effectively completes the conversion.
  • The recurring annual NA assessment has been replaced by a one-time conversion premium under Section 47, reported at 0.1%–0.5% of market value depending on plot size.
  • This is announced/recently-notified reform. Confirm the exact section, the operative Government Resolution and current rates with the Collector or Town Planning office before you rely on it for a specific parcel.

What is deemed NA (auto-NA) conversion in Maharashtra?

Deemed NA conversion means that agricultural land whose intended non-agricultural use is already permitted under the applicable Development Plan or Regional Plan is treated as converted to NA without the landowner having to obtain a separate non-agricultural (NA) order from the Collector. Instead of a standalone conversion sanad, the planning permission or building-plan approval issued by the Planning Authority itself carries the change of use. This is the “auto-NA” idea Revenue Minister Chandrashekhar Bawankule described as an ease-of-doing-business reform when the change was placed before the state legislature.

The reform matters because the old route was slow: even land plainly earmarked for residential or commercial use in a sanctioned plan still needed a Collector’s NA order, arrears of annual NA assessment, and a sanad before anything could be built. Deemed NA removes that duplicate step where the planning framework has already decided the land’s use.

The legal basis: the MLRC (Second Amendment) Act, 2025

The change sits in the Maharashtra Land Revenue Code (Second Amendment) Act, 2025, which substituted Section 42 of the Maharashtra Land Revenue Code, 1966. Legal analyses of the amendment record that it was introduced in December 2025 and received the Governor’s assent on 31 December 2025, with an implementing Government Resolution reported as dated 10 February 2026. The substituted Section 42 provides that where the intended NA use is permissible under the draft or final DP/RP, the Development Control Regulations or other instruments under the MRTP Act, no permission of the Collector is required to change the use from agricultural to non-agricultural.

In the same amendment, the earlier deemed-conversion provisions (Sections 42A, 42B, 42C and 42D) and the sanad/NA-permission machinery (Sections 44, 44A, 45, 46 and 47A) were repealed, and Section 47 was recast to introduce a one-time conversion premium in place of recurring NA assessment. Because this is very recent, treat the exact section and GR references as “as announced” and confirm the current position with the Collector or Town Planning office for your parcel.

Deemed NA vs full NA conversion: how they differ

The practical distinction is whether the planning framework has already permitted your intended use. Where it has, you fall in the deemed/auto-NA lane and skip the Collector’s separate NA order; where your use is not covered by the plan, or the land sits outside a planned area, the older full-application logic still matters. The table compares the two.

Aspect Deemed / auto-NA (under substituted Section 42) Full NA conversion application (traditional route)
When it applies NA use is permissible under the draft/final DP or RP and building rules Use not covered by a sanctioned plan, or land outside a planned/notified area
Collector’s NA order Not required — planning/building approval carries the conversion Required — separate Collector permission and sanad
Charge to the state One-time conversion premium (Section 47) Previously annual NA assessment; now the one-time premium regime
Typical trigger document Development permission / building-plan approval from the Planning Authority Sanction of the NA application by the Collector
Speed Faster — one approval channel Slower — two separate departments

Is NA assessment still payable under deemed NA?

Yes — a charge to the state is still payable, but its form has changed from a recurring annual NA assessment to a one-time conversion premium. Legal commentary on the 2025 amendment reports the recast Section 47 premium as roughly 0.1% of market value for plots up to 1,000 sq m, about 0.25% for 1,001–4,000 sq m, and about 0.5% above 4,000 sq m, calculated on the current market value (Ready Reckoner / Annual Statement of Rates). Deemed NA is therefore not a fee waiver — it removes a procedural step, not the premium.

These figures are as reported for recently-notified reform. Do not budget a specific parcel on them alone: confirm the applicable rate, slab and any transitional charge for land converted earlier with the Collector or the Planning Authority. Where a parcel had accumulated arrears under the old annual-assessment system, the amendment also addressed pending dues — another point to verify against the operative GR.

What deemed NA does NOT do

Deemed NA does not override zoning. If the Development Plan or Regional Plan puts your land in a Green Zone, No-Development Zone, or any use your proposed activity does not fit, the deemed route does not help — the use must first be permissible. It also does not replace building-plan sanction, environmental or CRZ clearances, height and FSI limits, or title diligence. It removes the duplicate Collector NA order where planning has already permitted the use; every other approval stands. Confirm the zone on the sanctioned plan before assuming a parcel qualifies.

“The auto-NA reform is one of the most useful things to happen to Maharashtra land in years — but it is being mis-sold. It does not turn farmland into buildable plots by magic. It removes a redundant Collector step where the Development Plan already permits your use. Read the sanctioned plan first, confirm the zone, then celebrate. We still confirm every parcel’s section and GR position with the Collector before we advise a client to build on it.”

— Girish Chhalwani, Founder & CEO, THE EDGE Developments

What landowners should do now

  1. Check the zone. Confirm your land’s reservation and permissible use on the draft or final DP/RP for the area.
  2. Confirm the current legal position. Ask the Collector or Town Planning office whether your parcel falls under the substituted Section 42 deemed route and which GR applies.
  3. Model the premium. Get the one-time conversion premium computed on the current Ready Reckoner value for your plot size.
  4. Pull a fresh 7/12 and record. Confirm ownership and any existing NA/arrears entries before you proceed.
  5. Get planning/building approval. Under the deemed route, this approval is what carries the conversion — treat it as the operative document.

Frequently Asked Questions

What is deemed NA conversion in Maharashtra?

Deemed NA (auto-NA) means agricultural land whose intended use is already permissible under the applicable Development Plan or Regional Plan is treated as non-agricultural without a separate Collector conversion order. The Planning Authority’s development or building-plan approval carries the change of use.

Which law introduced the auto-NA reform?

The Maharashtra Land Revenue Code (Second Amendment) Act, 2025 substituted Section 42 of the MLRC, 1966 and repealed the older deemed-conversion provisions. As this is recent, confirm the exact section and the operative Government Resolution with the Collector or Town Planning office for your parcel.

Do I still pay NA assessment under deemed NA?

You no longer pay the recurring annual NA assessment, but a one-time conversion premium is payable under the recast Section 47, reported at 0.1% to 0.5% of market value depending on plot size. Confirm the current rate and slab with the Collector, as figures may change.

How is deemed NA different from a full NA conversion application?

Deemed NA applies when the plan already permits your use, so no separate Collector NA order is needed. A full NA conversion application is the traditional route for uses not covered by a sanctioned plan, or for land outside a planned area, and it requires the Collector’s permission and a sanad.

Does deemed NA mean any farmland can now be built on?

No. Deemed NA only removes the duplicate Collector step where the Development Plan or Regional Plan already permits the intended use. It does not override zoning, and land in a Green Zone or No-Development Zone does not qualify. Building sanction and other clearances still apply.

Not sure if your land qualifies for deemed NA?

THE EDGE Developments reads the sanctioned Development Plan, confirms the zone and the current section/GR position with the authorities, and models the conversion premium before you commit. Get a parcel-specific view from our Land Intelligence team.

Contact THE EDGE Developments →

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author avatar
Girish Chhalwani CEO
Girish Chhalwani is a visionary real estate leader and Founder of THE EDGE Developments, known for identifying and unlocking land value through infrastructure-led and future-focused development strategies. With 18+ years of experience across sales, strategy, and land development, he has influenced over ₹8,500 crore in real estate transactions and advised multiple large-scale projects across emerging growth corridors in Maharashtra.
About the author
Girish Chhalwani
Girish Chhalwani is a visionary real estate leader and Founder of THE EDGE Developments, known for identifying and unlocking land value through infrastructure-led and future-focused development strategies. With 18+ years of experience across sales, strategy, and land development, he has influenced over ₹8,500 crore in real estate transactions and advised multiple large-scale projects across emerging growth corridors in Maharashtra.

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