In DP/RP-Permitted Areas, Planning Authority Approval Becomes The Primary Gate. Annual NA Assessment Ends, Replaced By A One-Time Conversion Premium—Changing The Math For Plot Buyers, Land Banks, And Bank Loans.
By Arosh John, Founder, John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief, Thane Real Estate News (TREN)
Thane | 14 February 2026
Maharashtra has introduced a land-administration reform that directly impacts the plotted-development and redevelopment ecosystem—especially in the fringe belts of Thane, Kalyan, Dombivli, and Bhiwandi, where transactions often sit at the intersection of planning permissions, land records, and lender checklists.
At the core of the change are two shifts:
- The state has removed the separate Collector-level Non-Agricultural (NA) permission step in cases where the proposed non-agricultural use is already permitted under the Development Plan (DP) / Regional Plan (RP) and the Planning Authority grants development permission or approves the building plan.
- The state has abolished the recurring annual NA assessment (“NA tax”) and moved to a one-time conversion premium model linked to the Annual Statement of Rates (ASR).
For the market, the practical impact is clear: one less bottleneck, more predictable permissions, and greater emphasis on planning compliance and title/tenure hygiene.
What Changes And What Stays The Same
What Changes
- No separate Collector NA permission is required when the use is DP/RP-permitted and the Planning Authority approves the development/building plan.
- Annual NA assessment ends. A one-time conversion premium becomes the primary payable before permission is granted.
- For many lending files, the proof-set shifts toward Planning Authority approvals + premium payment trail, subject to each bank’s internal policy.
- In practical terms, the system reduces dependence on a standalone NA sanad mindset when planning approvals exist.
What Stays The Same
- Zoning, reservations, DP roads, setbacks, access-road requirements, and UDCPR/DCPR compliance still decide what can be built.
- Title chain, litigation, encumbrances, and land tenure restrictions still decide whether a plot is truly transactable and mortgageable.
One-Time Conversion Premium: The New Cost Handle
Instead of a recurring NA assessment, the system moves to a one-time premium, calculated on the land’s ASR-based market value (collected before the Planning Authority grants permission):
| Land Area Slab | One-Time Premium (On ASR Market Value) |
|---|---|
| Up to 1,000 sq.m. | 0.10% |
| 1,001–4,000 sq.m. | 0.25% |
| Above 4,000 sq.m. | 0.50% |
This matters because it makes conversion-related costs upfront, model-able, and easier to underwrite for both developers and lenders.
Pending Dues, Arrears, And Legacy Conversions: The Point People Will Ask First
A key clarification for owners of already-NA land (or land with older NA history):
- The government has indicated waiver of recovery of pending NA assessment dues up to the date of this reform (where such dues were pending).
- However, land that was converted to non-agricultural use earlier can still fall under the one-time conversion premium framework under the new regime, subject to the notified timelines and conditions.
- For older conversions, the one-time premium logic ties back to ASR reference years (typically ASR 2001 for conversions up to 31 December 2001, and ASR of the conversion year for conversions after 1 January 2002 up to commencement of the amendment).
- Separately, this reform does not erase other government dues that may apply to specific tenure categories (including occupancy-linked dues where applicable).
Practical takeaway: don’t assume “abolished” means “everything historic disappears.” The reform removes the recurring annual NA assessment going forward and streamlines the conversion pathway, while migrating legacy parcels into a one-time premium logic and continuing to recognise tenure-linked compliance where relevant.
Hyper-Local Execution: Which Rules And Which Office Will Control Your File?
This reform reduces the Collector step, but your file still runs through the relevant Planning Authority for your exact jurisdiction, applying UDCPR/DCPR and local process flows.
Across the Thane belt, this typically means:
- Thane: Thane Municipal Corporation (TMC) (within its planning limits)
- Kalyan–Dombivli: KDMC (within its planning limits)
- Bhiwandi: BNCMC (within municipal limits) and the applicable local/special planning authority for surrounding villages
- Notified / Special Planning Areas: the notified Special Planning Authority or Development Authority (as applicable)
Important nuance: UDCPR is the regulation framework, but sanctioning logic, checklists, and timelines still depend on which Planning Authority has jurisdiction over your survey number.
Before Vs After: Plot Buyers In Peripheral Thane / Kalyan / Dombivli / Bhiwandi
The Buyer Journey
| Step | Before | After |
|---|---|---|
| Conversion clarity | Buyers chased Collector NA orders/sanads—often late in the process | Planning Authority approval becomes the main trigger in DP/RP-permitted cases |
| Time risk | “NA pending” delayed finance, resale, and construction permissions | One less authority layer reduces timeline uncertainty |
| Resale comfort | Secondary buyers demanded “NA proofs,” and gaps reduced demand | Cleaner permission trail improves resale confidence (if title is clean) |
What Improves For Plot Buyers
- Lower uncertainty in compliant parcels where DP/RP zoning aligns with intended use.
- Better loan readiness when documentation is anchored to planning approvals and premium receipts.
- Less last-minute resistance in resale due diligence, if the title chain is clean.
What Still Decides Safety (Non-Negotiables)
This reform reduces one bottleneck. It does not make a risky plot safe by default. Buyers still need strict due diligence:
- Zoning & permissibility: confirm land-use zone and intended use under the applicable plan.
- Approach road & width: access is the biggest approval and resale trigger.
- Tenure/occupancy class: restrictions can block transfer and mortgage.
- Title chain & encumbrances: 7/12, mutation entries, liens, partitions, and litigation search.
- Layout permissions: if sold as a plotted scheme, verify formal layout approval and compliance.
Plot Buyer Takeaway
In the Thane–KDMC–Bhiwandi fringe, the winners will be buyers who verify planning legality, access, and tenure clarity—not buyers who rely on “NA is easy now.”
Before Vs After: Developers Holding Raw Land Banks
Land Bank Strategy Shift
| Theme | Before | After |
|---|---|---|
| Value unlock | Separate Collector process slowed pre-development uplift | Planning permission becomes the primary gate in DP/RP-permitted cases |
| Carrying cost logic | Annual NA assessment added recurring cost/uncertainty | One-time premium makes costs clearer and front-loaded |
| Speed-to-launch | Parallel approvals stretched launch calendars | Shorter critical path improves execution speed |
Where Developers Gain The Most
- Plotted development, row-house, and low-rise clusters in DP/RP-permitted zones.
- Parcels where the only “delay story” was the legacy NA permission chain.
- Land-bank monetisation strategies that depend on faster permission timelines.
The Tenure Caveat Developers Cannot Ignore
This reform does not automatically change Occupant Class-II status or remove tenure-linked government dues. Where such tenure applies, developers must still plan for applicable nazarana/premium and related compliance.
Developer Takeaway
Clean, DP-aligned parcels can move faster to monetisation. Mixed-tenure or mixed-record parcels will face tighter underwriting and tougher pricing conversations.
Before Vs After: Banks And Loan Processing
What Changes In Bank Checklists
| Lending Stage | Before | After |
|---|---|---|
| Conversion proof | Banks often demanded Collector NA order/sanad | Planning permission + premium payment proof becomes the main proof-set (policy-dependent) |
| Disbursement timing | Disbursement stalled due to missing conversion papers | Faster movement is possible where permissions are complete |
| Risk scoring | Ambiguous NA status reduced lender comfort | Clearer permission logic improves collateral scoring (if title/tenure is clean) |
What Banks Are Likely To Ask For Now
- Planning Authority development permission / building plan approval
- Proof of one-time premium payment (receipt/challan trail)
- Updated land record reflection once processed (where applicable)
- Standard title search, encumbrance checks, and legal opinion
- Tenure/occupancy clarity for mortgageability
Bank Takeaway
Scrutiny remains. The reform mainly reduces avoidable friction and shifts the compliance proof-set.
Thane Belt Outlook (2026–2028): What To Expect
- More plotted inventory will market itself as “loan-friendly.” Buyers must separate real compliance from marketing claims.
- Clean parcels will move faster. Expect time-to-permission compression where zoning and access are settled.
- Documentation discipline becomes an advantage. Builders, brokers, and buyers who standardise due diligence will close more deals with fewer surprises.
FAQ
Is NA Permission Removed In Every Situation?
It is streamlined primarily for cases where the intended use is DP/RP-permitted and the Planning Authority grants development/building plan approval. Edge cases still require careful verification.
Does “NA Tax Abolished” Mean No Taxes Are Payable?
No. Municipal property tax and other statutory charges continue. This change ends the annual NA assessment under land revenue administration and shifts to a one-time premium framework.
Will Plot Loans Become Easier In Kalyan–Dombivli And Bhiwandi Belts?
They can—if zoning is permitted, access is valid, tenure is mortgageable, and the title chain is clean. Banks can still reject files that fail these basics.
Should I Buy Plots Aggressively Because Conversion Is “Easier”?
Only after due diligence. The reform reduces one bottleneck; it does not eliminate the risks associated with zoning, access, tenure, and title.
Also READ: The Rise of Villas and Plotted Living in Thane–MMR: Why Urban Buyers Are Moving Beyond Apartments
About The Author
Arosh John is the Founder of John Real Estate (MahaRERA Reg. No. A51700001835) and the Editor-in-Chief of Thane Real Estate News (TREN). With over a decade of on-the-ground experience across Thane, Kalyan–Dombivli, and Bhiwandi micro-markets, he specialises in transaction-safe advisory, resale and primary market consulting, and policy- and infrastructure-led location intelligence. His work focuses on helping end users and investors make better decisions through due diligence discipline, clear documentation, and practical market guidance grounded in real execution.
Disclaimer
This article is published for general information and market awareness only. It does not constitute legal, financial, tax, or investment advice. Regulations and implementation can vary by jurisdiction, Planning Authority processes, and bank policies. Readers should independently verify zoning, permissions, premium requirements, title/tenure status, and documentation with the relevant authorities and qualified professionals before entering into any transaction.
