Mumbai / Nagpur, March 2026 – The Maharashtra government has decided to regularise only residential encroachments that existed prior to January 1, 2011, excluding Mumbai and Mumbai Suburban districts. The move is expected to benefit thousands of economically weaker families who have been residing in such properties for years, offering them long-awaited security of tenure. As per the policy, encroachments up to 500 sq ft will be regularised free of cost, while the upper limit has been fixed at 1,500 sq ft. For areas exceeding 500 sq ft, a fee equivalent to 10% of the market value will be charged. In cases where the encroached land is used for commercial purposes, a higher charge of 25% of the market value will apply. The regularised land will be granted under Occupant Class-II status, with a restriction on transfer for five years. Applicants will be required to submit supporting documents such as voter ID records, electricity bills, and property tax receipts.
What Occupant Class-II Status Means
The regularisation grants land under Occupant Class-II tenure, a category under the Maharashtra Land Revenue Code that comes with certain restrictions. Most significantly, Occupant Class-II landholders require government permission to transfer the land, particularly for non-agricultural uses. The five-year transfer restriction imposed by this policy is an additional safeguard designed to prevent immediate speculation on regularised plots ensuring the benefit reaches actual long-term occupants rather than being quickly flipped.
After the five-year restriction period, beneficiaries can apply for conversion to Occupant Class-I status which carries unrestricted transfer rights through the normal MLRC process.
Scale and Eligibility
The cutoff date of January 1, 2011 aligns with land records and satellite imagery that are available for verification allowing revenue authorities to confirm the existence of encroachments through documentary evidence. Eligible applicants must provide voter ID records, electricity bills, and property tax receipts to establish their occupation history. The exclusion of Mumbai and Mumbai Suburban districts reflects the distinct land tenure and development control regime applicable to the city, where encroachment regularisation is governed by separate mechanisms under the Maharashtra Regional Town Planning Act and slum rehabilitation frameworks.
