Maharashtra tables Bill to remove requirement of non-farm use certificate for conversion of agricultural land; how it will benefit people

New premium structure (based on Ready Reckoner rate)
* Up to 1,000 sq. metres: 0.1 per cent of Ready Reckoner value
* 1,001 to 4,000 sq. metres: 0.25 per cent of Ready Reckoner value
* 4,001 sq. metres and above: 0.5 per cent of Ready Reckoner value

The government has assured that local bodies will suffer no revenue loss and will continue to receive their full share of taxes and fees. During the discussion, members across party lines hailed the decision.

What is a ‘Sanad’ certificate?

A specific piece of land requiring a ‘Sanad’ certificate is called ‘Sanad’ land. It has been a significant legal document essential in India, especially applicable in Maharashtra and Goa.

The ‘Sanad’ certificate enables the conversion of agricultural land to non-agricultural use for the construction of residential and commercial structures. According to the revenue department, ‘Sanad’ is an official government approval for land-use change and legal development.

Its stated objective was to convert farm/ agriculture land to non-agricultural use. Also, the Sanad certificate is proof of ownership rights and specifies the land-use conditions, and it is issued by the Revenue Department. It was prima facie evidence of land title, establishing the holder’s rights.

How will it make life easier for people and businesses?

The new amendment eliminates one significant hurdle. Instead of a ‘Sanad’, landowners will now have to pay only a nominal premium to regularise the change in land use. Doing away with the need for ‘Sanad’ will significantly reduce bureaucracy and make doing business in the state easier.

It will not only reduce the need for one approval layer, but it will also expedite the approval process for converting land use to residential or commercial purposes.