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🏠 Maharashtra Government Lifts Ban on State-Owned Land Allotment to Housing Societies

20 August 2026 by
🏠 Maharashtra Government Lifts Ban on State-Owned Land Allotment to Housing Societies
The Society Consultants
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The Maharashtra government has lifted its long-standing ban on the allotment of state-owned land to cooperative housing societies, opening the door for fresh housing projects across the state. 🏢 The freeze, which had been in place since 2010, has now been replaced with a revised policy aimed at making government land allotment more structured and transparent. 📋

🏘️ New Reservation Requirements

Under the new framework, government-owned plots will be identified by district collectors and allotted through a public auction process involving technical and financial bids. 🔨 The revised system moves away from the earlier lottery-based approach, with the highest eligible bidder expected to secure the land.

The policy also introduces specific social inclusion requirements for housing societies receiving government land. At least 20% of members must belong to backward classes, while 5% must be persons with disabilities. ♿

👥 Plots Reserved for Multiple Groups

The government has identified several categories that can benefit from reserved plots, including government employees, SC/ST and nomadic communities, writers, artists, sportspersons, journalists, armed forces personnel, persons with disabilities and economically weaker sections. 🏡

This approach aims to make government land allotment more inclusive while ensuring that housing opportunities reach a wider range of eligible groups. 🤝

📜 Government Land on 30-Year Lease

Another important feature of the revised policy is that allotted government land will be provided on a 30-year lease. ⏳ The land may become eligible for conversion to Class-I occupancy only after completion of the prescribed lease period.

For pricing, the new policy sets the base price at 2.5% of the land's market value in Mumbai city and suburbs, while the rate is 5% for the rest of Maharashtra. 💰

⚖️ Stricter Rules for Flats and Transfers

The revised framework also introduces stronger compliance requirements for societies receiving government land. Joint membership of husband and wife is compulsory, while prior permission will be required for certain flat transfers, mortgages and redevelopment activities. 🏢📑

District collectors can also take action against dummy or benami flats, including taking over such flats without compensation where applicable. 🚨

🔑 What This Means for Housing Societies

The lifting of the ban could create new opportunities for cooperative housing societies seeking land for residential development. 🏗️ At the same time, the revised framework places greater emphasis on transparency, eligibility, reservations and government oversight.

For housing societies, understanding the new allotment conditions will be essential before participating in the process. 📌 The policy marks a significant shift in how Maharashtra's state-owned land can be made available for cooperative housing and could influence housing development across Mumbai and the wider state. 🏙️

Source:

https://theprint.in/india/maharashtra-govt-lifts-ban-on-state-owned-land-allotment-to-housing-societies/3019520/

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🏠 Maharashtra Government Lifts Ban on State-Owned Land Allotment to Housing Societies
The Society Consultants 20 August 2026
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