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Maharashtra Extends Nazul Land Amnesty Scheme: A Game-Changer for Vidarbha Property Holders

Nazul Land Amnesty Scheme: A Game-Changer for Vidarbha Property Holders
Nazul Land Amnesty Scheme: A Game-Changer for Vidarbha Property Holders

The Maharashtra government's decision to extend the Nazul Land Amnesty Scheme by one year has brought significant relief to thousands of leaseholders across the Vidarbha region.


This extension, announced in July 2025, represents a policy intervention that addresses decades-old land ownership challenges while simultaneously boosting state revenue collection.


The scheme, officially known as the Special Abhay Yojana 2024-25, was initially launched on 16 March 2024 with a deadline of 31 July 2025. Following sustained advocacy by political leaders and overwhelming public response, the Maharashtra cabinet extended the scheme until 31 July 2026.


The extension decision was approved during a meeting chaired by Revenue Minister Chandrashekhar Bawankule at the state legislature, following compelling arguments about the scheme's effectiveness and continued public demand.


This amnesty programme specifically targets nazul lands leased for residential purposes in the Nagpur and Amravati divisions, part of the Central Provinces and Berar during the British era.


The scheme's most significant feature is the dramatic reduction in freehold conversion charges from the previous 5 percent to just 2 percent of the current market value as per the Annual Statement of Rates.


Understanding Nazul Land System in Vidarbha


Nazul land represents a unique category of government-owned property that has its roots in British colonial administration.


The term originated from the Urdu word meaning "leased" and refers to land that escheated to the government or was otherwise acquired by the state.


In the context of Vidarbha, nazul land is defined as government waste land within municipal areas that is given for non-agricultural purposes such as building, roads, markets, playgrounds, or other public purposes.


The Nazul land system in Nagpur and Amravati divisions stems from the historical administrative structure of the Central Provinces and Berar. When these regions were part of the British colonial administration, the nazul lands were classified under the Madhya Pradesh Land Revenue Code of 1954.

After Maharashtra's formation in 1960, these areas retained their distinct Nazul land classification, making them unique within the state's revenue system.


The Nazul land policy has created a complex web of rights and obligations for leaseholders. Under the existing system, nazul plots are leased to individuals and entities for specific periods, typically ranging from 15 to 99 years. Leaseholders must pay annual ground rent to the government and comply with specific conditions regarding land use. Violations of lease terms, unauthorised transfers, or changes in land use without permission traditionally attracted substantial penalties and unearned income charges.


The process of converting Nazul leasehold land to freehold has historically been cumbersome and expensive. Before the current amnesty scheme, leaseholders seeking ownership rights faced a premium of 5 percent of the ready reckoner value, along with various administrative charges and penalties for any violations of lease conditions.


This high cost barrier prevented many leaseholders from converting their properties to freehold status, leaving them in perpetual dependence on government permissions for any property transactions.


Scheme Impact and Revenue Generation


The financial impact of the revised pricing structure has exceeded all expectations, validating the government's decision to reduce charges. Official statistics presented during the extension meeting revealed remarkable revenue generation patterns that influenced the decision to extend the scheme.


Between 2019 and 2024, when the premium rate was set at 5 percent of market value, the state government collected Rs 9 crore from nazul lease conversions across both divisions.


However, under the revised 2 percent rate implemented from March 2024, revenue collection surged dramatically to Rs 24.65 crore within just one year.

This represents a nearly 175 percent increase in revenue generation, demonstrating that lower rates significantly increased participation rates among eligible leaseholders. The revenue surge indicates that the reduced premium removed a major financial barrier that had previously deterred leaseholders from seeking freehold conversion.


The scheme's success can be attributed to several factors beyond just the reduced premium rate. The simplified application process, clearer guidelines, and removal of bureaucratic hurdles have made it easier for leaseholders to navigate the conversion process. Additionally, the scheme provides relief on ground rent arrears and offers a framework for regularising violations of lease conditions at reasonable rates.


For individual leaseholders, the financial relief is substantial. A property with a ready reckoner value of Rs 10 lakh would require a premium payment of Rs 20,000 under the current scheme, compared to Rs 50,000 under the previous 5 percent rate.

This reduction makes freehold conversion accessible to middle-class families who form the majority of nazul plot holders in both Nagpur and Amravati.


The scheme also addresses the issue of unearned income charges for unauthorised transfers or change of use. Previously, leaseholders faced penalties calculated at 25 percent of the current market value for such violations. The amnesty scheme provides for the regularisation of these violations at significantly reduced rates, bringing relief to thousands of families who had been unable to regularise their property status due to high penalty costs.


Political Leadership and Advocacy


The extension of the Nazul Land Amnesty Scheme represents the culmination of sustained political advocacy, particularly by Nagpur Central MLA Pravin Datke. As a former Legislative Council member, Datke has been the primary political voice championing the cause of Nazul plot holders for over two years.


Datke's involvement with the Nazul land issue began during his tenure as a Legislative Council member, when he first raised the demand for a special amnesty scheme in 2024. His persistent advocacy included raising the issue in various legislative sessions, meeting with revenue ministers, and building support among fellow legislators.


The MLA's efforts were instrumental in convincing the government to initially launch the scheme in March 2024 and later secure its extension.

Speaking about the scheme's impact, Datke emphasised its dual benefit to citizens and government revenue. His advocacy was supported by concrete data showing increased revenue generation under the reduced rate structure. The MLA expressed gratitude to Chief Minister Devendra Fadnavis and Revenue Minister Chandrashekhar Bawankule for recognising the need to extend the scheme beyond its original deadline.


Revenue Minister Chandrashekhar Bawankule, who currently holds the portfolio, played a crucial role in the scheme's extension. Bawankule, who represents the Kamthi constituency in the Maharashtra Legislative Assembly, has been closely associated with Vidarbha politics and understands the region's unique land-related challenges.


His decision to approve the extension was based on empirical evidence of the scheme's success in both citizen relief and revenue generation.


Chief Minister Devendra Fadnavis, himself representing Nagpur South West constituency, has been supportive of measures benefiting Vidarbha residents. The Chief Minister's backing has been crucial in ensuring that the scheme receives necessary government approvals and resource allocation.


Fadnavis's long association with Nagpur politics and his understanding of local issues have contributed to his support for the Nazul land reforms.


The scheme has also received support from other political figures and citizen groups. The Vidarbha Taxpayers' Association had previously advocated for reduced conversion charges, suggesting that the 5 percent residential rate and 10 percent commercial rate were too high and should be reduced to 2 percent and 4 percent, respectively. The current scheme has partially addressed these demands for residential properties.


Broader Implications for Vidarbha Development


The Nazul Land Amnesty Scheme's extension carries implications that extend far beyond individual property rights, touching upon broader questions of regional development and administrative efficiency in Vidarbha.


The scheme addresses longstanding grievances about the complex and expensive process of converting leasehold Nazul land to freehold, which has created barriers to property transactions, loan approvals, and redevelopment projects.

Vidarbha region, comprising the Nagpur and Amravati divisions, has approximately 36,791 nazul plot holders according to government estimates. In Nagpur city alone, there are over 10,500 nazul plots covering more than 100 acres, with an estimated resident population exceeding one lakh people.


These plots are located in prime areas, including Dhantoli, Congress Nagar, Ramdaspeth, Dharampeth, Gadga, Civil Lines, Jaripatka, and Indora.


The concentration of Nazul lands in prime urban areas means that the scheme's impact extends to some of the most economically significant parts of both cities. Many of these areas house established residential colonies, commercial establishments, and mixed-use developments that have grown over decades.


The ability to convert these properties to freehold status removes legal uncertainties and facilitates easier property transactions, potentially boosting real estate activity in these areas.

From a banking and finance perspective, the scheme removes a significant impediment to using nazul properties as collateral for loans. Banks and financial institutions have traditionally been cautious about accepting leasehold nazul properties as security due to the complex legal framework and potential government claims. Freehold conversion eliminates these concerns, making it easier for property owners to access credit for business expansion, education, or other purposes.


The scheme also has implications for urban redevelopment initiatives. Many ageing residential societies and commercial complexes in Nazul areas had faced difficulties in undertaking redevelopment due to unclear ownership status and complex government permissions required. With freehold ownership, these properties can more easily participate in redevelopment schemes, potentially leading to improved urban infrastructure and housing stock.


For the state government, the scheme represents a shift towards a more business-friendly approach to land administration.

By simplifying procedures and reducing costs, the government is encouraging voluntary compliance and regularisation of property status. This approach has proven more effective than the previous system of high penalties and complex procedures that often led to litigation and non-compliance.


The success of the scheme has also provided a model for addressing similar land-related issues in other parts of Maharashtra and potentially other states. The principle of reducing charges to increase voluntary compliance while boosting revenue collection offers lessons for land administration reforms in other contexts.


However, the scheme also highlights the ongoing challenges of historical land administration systems that create complexities for current property owners. The need for such amnesty schemes reflects the accumulated burden of administrative procedures that have become outdated and burdensome for citizens. The government's willingness to address these issues through policy reforms demonstrates a recognition of the need to modernise land administration systems.


Revenue Department Modernisation and Future Outlook


The implementation of the Nazul Land Amnesty Scheme occurs within the context of broader modernisation efforts within Maharashtra's Revenue Department. Under Revenue Minister Chandrashekhar Bawankule's leadership, the department has been implementing technological solutions and administrative reforms aimed at improving efficiency and transparency.


Recent initiatives include the mandatory use of facial recognition-based attendance systems for revenue department employees and the introduction of geo-fencing to ensure attendance is marked from office premises.

These technological interventions reflect the government's commitment to improving administrative efficiency and accountability in revenue operations.


The department has also been working to reduce pendency in quasi-judicial matters, with the minister personally reviewing over 800 cases in recent months. The emphasis on using Lok Adalats for the speedy disposal of pending cases and the directive to complete all revenue-related tasks within specified timeframes indicate a focus on time-bound service delivery.

For Nazul land administration specifically, the government has been developing digital portals and online application systems to streamline processes.


The e-Nazul web portal initiative in Nagpur represents an effort to digitise nazul land records and enable online processing of applications for services such as lease renewal, freehold conversion, transfer, partition, and mortgage requests.


The success of the current amnesty scheme is likely to influence future policy directions for Nazul land administration. The demonstrated effectiveness of reduced charges in encouraging voluntary compliance may lead to permanent revision of conversion rates rather than temporary amnesty schemes.


This would provide certainty to leaseholders and ensure sustained revenue generation for the government.


The scheme's extension until July 2026 provides sufficient time for eligible leaseholders to complete the conversion process without rushing. This extended timeline also allows the revenue department to handle applications systematically and ensure proper verification and processing of documents.

Looking ahead, the scheme's success may encourage the government to consider similar reforms for other categories of government land. Collector lands in Mumbai, occupancy class II lands across Maharashtra, and other leasehold government properties face similar issues of high conversion costs and complex procedures.


The Nazul Land Scheme's model of reduced charges coupled with simplified procedures could be adapted for these other land categories.

The scheme also contributes to the broader goal of improving the ease of doing business in Maharashtra. By simplifying property ownership processes and reducing compliance costs, the state government is addressing one of the key concerns of businesses and individuals operating in the state. This approach aligns with national policies aimed at reducing regulatory burden and improving the investment climate.


The Nazul Land Amnesty Scheme's extension represents more than just a policy decision; it embodies a shift towards more citizen-friendly governance that recognises the need to balance revenue generation with public welfare. The scheme's success in achieving both objectives demonstrates that well-designed policies can create win-win situations for both government and citizens.


As Vidarbha continues its development journey, such policy interventions play a crucial role in removing historical barriers and creating an enabling environment for progress.


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