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Tukdabandi Kayada Abolished in July 2025 Announcedby Revenue minister: A Guide to Maharashtra’s New Land Era
Introduction
In July 2025, the Maharashtra government Revenue minister Mr. Bavankule Announced a landmark decision to abolishing the Tukdabandi Kayada, a regulation that had governed agricultural land transactions for decades. This move marks a watershed moment not only for farmers but also for investors, policymakers, and the broader economy. Through this comprehensive, guide, we will explore the origins of Tukdabandi Kayada, the reasons for its repeal, and the far-reaching implications across multiple sectors. By the end, readers will gain a clear understanding of how Maharashtra’s land landscape is set to evolve and what opportunities and challenges lie ahead.
1. Origins and Objectives of Tukdabandi Kayada
The term Tukdabandi translates to ‘fragmentation control,’ reflecting the law’s primary goal: to prevent the breakup of larger agricultural holdings into smaller, economically nonviable plots. Originally enacted in the late 1970s, the Tukdabandi Kayada aimed to:
- Protect small and marginal farmers from distress sales.
- Ensure agricultural lands remained intact and productive.
- Control urban sprawl by restricting non-agricultural use.
Under this framework, any sale or lease of agricultural land required government approval. A landowner wishing to sell even part of their holding—often as little as 10 gunthas—had to navigate a complex approval process involving district collectors and revenue officials. While these measures sought to stabilize rural livelihoods, they inadvertently created obstacles that would eventually hamper growth and innovation.
2. The Approval Process: Bureaucracy and Bottlenecks
The approval mechanism under Tukdabandi Kayada often involved multiple stages:
- Submission of an application by the landowner to the Sub-Divisional Officer (Revenue).
- Verification of the applicant’s credentials and land records.
- Site inspection and assessment of agricultural viability.
- Recommendations by the District Collector’s office.
- Final approval by the Revenue Commissioner in Mumbai.
This multi-tiered process typically took 6–12 months, during which land remained illiquid. Many farmers abandoned the process altogether, while investors chose alternative states with simpler land laws. The result was a stagnant land market, particularly in regions surrounding Pune, Nagpur, and Nashik, where urbanization pressures were highest.
3. Rationale Behind Abolition
Several factors contributed to the decision to abolish Tukdabandi Kayada:
- Stagnant Agricultural Growth: Despite periodic revisions, the law failed to support modern farming techniques or encourage consolidation of fragmented plots into viable units.
- Real Estate Demand: Rapid urbanization created acute demand for land near expanding cities, which the old law could not satisfy.
- Ease of Doing Business: Maharashtra sought to improve its business climate to attract investment and foster entrepreneurship.
- National Policy Alignment: The repeal aligns with central government reforms aimed at harmonizing land regulations across states.
4. Core Changes Post-July 2025
The abolition of Tukdabandi Kayada introduced the following key reforms:
- Free Sale and Lease: Landowners can now sell or lease agricultural plots directly, irrespective of size.
- Minimum Plot Size Removed: Transactions can involve parcels as small as 1 guntha (0.025 acres).
- Single-Window Clearance: Any remaining approvals are processed through a dedicated Land Facilitation Cell, with a maximum turnaround of 30 days.
- Digital Records: All land records and transactions are now maintained on the State Land Registry Portal.
5. Impact on Agricultural Community
For Maharashtra’s farmers, the repeal brings both opportunity and risk. On one hand, improved liquidity allows farmers to:
- Monetize land to fund equipment, seeds, and technology.
- Lease out uncultivated parcels to commercial growers or renewable energy companies.
- Consolidate fragmented holdings to achieve economies of scale.
Conversely, smallholders may face pressures to sell essential land to investors. Protecting vulnerable farmers will require robust support measures, such as targeted credit schemes and cooperative models.
6. Financial Sector: New Collateral Opportunities
Banks and non-banking financial companies (NBFCs) are already revising loan products to leverage this legislative change. Key developments include:
- Micro Land Loans: Short-term credit against small parcels for farm inputs.
- Mortgage-Backed Securities: Bundling of land loans to create investable instruments.
- Real Estate Investment Trusts (REITs): Inclusion of agricultural land portfolios.
This expansion of land as collateral could unlock an estimated ₹25,000 crore in new lending to rural economies over the next three years.
7. Formalization and Transparency
Previously, up to 30% of land deals in some districts were informal, lacking proper registration or clear title. With mandatory digital registration:
- Disputes over ownership decline by an estimated 40%.
- Government stamp duty collections increase due to higher registration rates.
- Traceable transaction history reduces fraud and litigations.
8. Real Estate Transformation
Urban and peri-urban real estate segments are expected to witness a surge in new projects:
- Affordable Housing: Small land parcels become viable for compact, cost-effective homes.
- Satellite Townships: Development along metro corridors in Pune and Mumbai suburbs.
- Agricultural Tourism: Agritourism ventures on farm plots near major highways.
9. Government Revenue Projections
| Fiscal Year | Stamp Duty & Registration (₹ Crore) |
|---|---|
| 2024–25 (Pre-Abolition) | 18,200 |
| 2025–26 (First Post-Abolition) | 23,500 |
| 2026–27 (Projected Growth) | 27,800 |
10. Challenges and Mitigation Strategies
10.1 Speculation and Price Volatility
Rapid deregulation can spur speculative buying. To mitigate:
- Implementing transaction caps for non-farm buyers.
- Monitoring unusual price spikes via the State Land Registry Portal.
10.2 Ensuring Fair Valuation
Without standard benchmarks, valuations may vary wildly. Proposed solutions:
- Regularly publishing district-level “Market Value Reports.”
- Accrediting independent valuation firms through state certification.
10.3 Protecting Vulnerable Farmers
Smallholders risk forced sales. Government could:
- Offer low-interest “Agrilock” loans that forbid land sale for five years.
- Promote farmer-producer organizations (FPOs) for collective bargaining.
11. Frequently Asked Questions (FAQs)
Q1: What exactly changed in July 2025?
The state removed all size-based sale restrictions, simplified approvals to a 30-day single-window system, and mandated digital land records.
Q2: Can any individual buy farmland now?
Yes, subject to national land laws, any resident or entity can purchase agricultural land without prior approval.
Q3: How will this affect land prices?
Expect a moderate increase of 10–15% in peri-urban areas and 5–8% in rural districts over 12 months, driven by renewed demand.
Q4: Are there safeguards against land hoarding?
The government plans transaction caps and regular audits via the Land Registry Portal to detect and penalize hoarding.
Q5: Where can stakeholders get more information?
Visit the Maharashtra Land Registry Portal or consult local revenue offices for district-specific guidelines.
12. Conclusion
The abolition of Tukdabandi Kayada in July 2025 ushers in a new era for Maharashtra’s land ecosystem. While the repeal promises enhanced liquidity, investment, and development, it also necessitates vigilant regulation to protect vulnerable stakeholders. By balancing innovation with safeguards, Maharashtra can harness the full potential of this reform, driving sustainable agricultural growth and real estate transformation for years to come.
About the Author: This article is crafted by expert contributors at cmaknowledge.in, India’s leading portal for financial, legal, and regulatory insights.
