Overview

• The cabinet formalized the policy under a newly inserted Rule 37A of the 1971 Land Revenue Rules to unlock small, underutilized nazul lands adjacent to private plots.
• Single adjoining plot holders can acquire these parcels at their existing lease rate or full market value, with Class-1 occupants paying an extra 25 percent premium.
• When more than one neighbouring plot holder applies, unanimous written consent is required; otherwise the land goes to the highest bidder at auction, with Class-1 bidders paying the greater of auction price or 125 percent premium.
• The policy applies across municipal corporation and council areas, limits parcel size to 10 percent of the original plot, and requires Mumbai District Collector approval and adherence to local development norms.
• Cabinet also approved annual ground rent and occupancy fee guidelines, and the policy now moves to district collectors and municipal bodies for formal notification and roll-out.