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Section 25 of Property Registration in Maharashtra
In the state of Maharashtra, India, there exists a crucial law that aims to prevent the fragmentation of land into very small plots. This law restricts the sale or purchase of land measuring just 1 or 2 Gunthas (a unit of measurement used in India), unless prior permission is obtained from the collector or the competent authority. However, with the proper authorization, such transactions can be registered and made legally valid.
Understanding the Prevention of Fragmentation and Consolidation of Holding Act 1947
The core legislation governing land fragmentation in Maharashtra is known as the "Prevention of Fragmentation and Consolidation of Holding Act 1947." Under this act, each district in the state is assigned a standard minimum area of land, and the sale or purchase of land parcels smaller than this standard is strictly prohibited under Section VIII.
The Introduction of Section VIII-B
In 2016, the state government made an important addition to the Prevention of Fragmentation and Consolidation of Holding Act 1947. This addition came in Section VIII-B, which was introduced through a gazette notification. Section VIII-B clarified that the act does not apply to land designated for non-agricultural purposes, such as industrial or commercial use, within the boundaries of Municipal Corporations or Municipal Councils, or under the Maharashtra Regional Planning and Town Planning Act 1966.
Urban Areas and the Sub Registrar's Role
The law against land fragmentation was occasionally ignored in urban areas and areas of influence. Consequently, the Sub registrar, who handles property registrations, rejected transactions involving very small land plots that violated the act. This reinforced the importance of obtaining the necessary permissions for such transactions to be deemed valid.
Revenue Department's Role in Informing Registration and Stamp Duty Department
To ensure compliance with the law, the Revenue department informs the Registration and Stamp Duty Department about transactions involving land that falls under the scope of Section VIII-B. This exchange of information ensures that proper documentation and permissions are obtained for such transactions.
Transactions with Already Purchased Small Land Plots
If an individual desires to sell a piece of land they already own, and that land is smaller than the standard area defined by the act, they must seek permission from the competent authority or the Collector under Section VIII-B of the Act. This provision ensures that even previously acquired small land plots are subject to regulation to prevent fragmentation.
Demarcated Land and the Role of the Land Records Department
In cases where the Land Records Department has officially demarcated a piece of land with a separate boundary map, permission for its sale is not required. However, if the land was formed independently without the demarcation, dividing it will necessitate the approval of the Collector or the Competent Authority, as per a circular from the Inspector General of Registration.
FAQs
Can I sell a small piece of land without permission?
No, the Prevention of Fragmentation and Consolidation of Holding Act 1947 in Maharashtra prohibits the sale of land smaller than the standard area fixed for each district without prior permission from the collector or the competent authority.
Is the law applicable to non-agricultural land?
No, Section VIII-B of the Act states that the law does not apply to land designated for non-agricultural use, such as industrial or commercial purposes, within the boundaries of Municipal Corporations or Municipal Councils.
What happens if I buy a small plot of land?
If you purchase a plot of land that is smaller than the standard area fixed under the Act, you will need permission from the competent authority or the Collector under Section VIII-B of the Act if you wish to sell it in the future.
What is the role of the Sub registrar?
The Sub registrar is responsible for handling property registrations. In urban areas, the Sub registrar ensures that land transactions comply with the law against land fragmentation.
Do I need permission for already purchased small land plots?
Yes, even if you already own a piece of land that is smaller than the standard area, you must obtain permission from the competent authority or the Collector if you wish to sell it in the future.
Are there exceptions to obtaining permission?
Yes, if the Land Records Department has officially demarcated a piece of land with a separate boundary map, permission for its sale is not required.
Gold and property are traditionally the two things that Indians believe in to create their wealth. Both of these would be termed safe investments to hold in the long run. However, as we usher in 2026, it's time to make the comparison smarter.
Reasons why people continue to purchase gold:
-
High Liquidity
-
Insure Against Inflation
-
Cultural and emotional value
-
Easy entry cost
Restrictions on using gold in 2026
-
Prices are globally driven
-
Returns tend to flatten during stable economic growth
-
Volatility rises during geopolitical events
Why land remains the standout in 2026:
-
Limited supply + Growing demand
-
Appreciation fueled by infrastructure
-
Tangible, controllable asset
-
It generates income (farmhouse,leasing,reselling)
-
Depreciable items like buildings
What’s driving land demand in 2026:
-
Road construction – highways, express roads, metro routes
-
Second homes and nature living
-
Urban areas to master-planned developments
-
Emphasis on clear-title, gated plot development
Land is no longer just about waiting — it’s about planned growth, zoning, and location intelligence.
Gold vs Land: 2026 Comparison Snapshot
|
Factor |
Gold |
Land |
|
Safety |
High |
High (with legal checks) |
|
Appreciation |
Moderate |
High (location-based) |
|
Passive Income |
❌ |
✅ |
|
Inflation Protection |
✅ |
✅ |
|
Supply Constraint |
❌ |
✅ |
|
Wealth Creation |
Limited |
Strong |
What Smart Investors Are Doing in 2026
Instead of choosing gold OR land, informed investors are:
- Holding gold for stability
- Allocating larger capital to land for growth
Especially popular are:
- Gated plotted developments
- Land near upcoming highways & infrastructure
- Nature-centric plots near Mumbai, Pune, Bengaluru
Final Verdict: Which Is Better in 2026?
In 2026, land clearly outperforms gold as a wealth-building asset — provided the location, legality, and timing are right.
Why Pollution Forces People to Opt for Land and Second Homes Closer to Nature
In the last few years, the air quality in cities like Pimpri Chinchwad, Pune, and Mumbai has continued to deteriorate gradually. It is no longer a surprise when the AQI figures go beyond 150, 200, and even 300. This means that the air we inhale daily is becoming increasingly hazardous, particularly for children, the elderly, and people with underlying health conditions. It is no longer a regular occurrence; it is now normal. As the environment deteriorates, so does the level of stress and discomfort.
People living in urban areas are beginning to ponder how much longer they will have to live within this environment. The traffic congestion, dust particles, sounds of horns and machinery, and the ever-present pressure to move and compete create an environment that is already hard to live with. Even the air that is breathed inside is no longer guaranteed to be safe.
Alongside this change in awareness, there has been an apparent change in what people perceive regarding homes and investments. Increasingly, individuals and families believe that having a retreat from the city environment is no longer a luxury but a necessity. This has triggered a steep demand for plots and second homes in environments that are cleaner and greener. Natural surroundings comprising trees, a cool breeze, and expansive space are becoming the paramount choice for a weekend home, a retirement, or a long-term investment solution.
Investing in land away from the polluted city means an individual gains peace of mind. An apartment, unlike land, lacks flexibility, privacy, appreciation, and a healthier environment. Land becomes a retreat where one can unwind, take a break, or even decide to live there eventually.
With the increase in levels of pollution in the state of Maharashtra, buyers are seriously contemplating the future. When you purchase a plot of land in a region with plenty of nature around, you get pure air, reduced noise, and a healthy rate of living. With an increase in pollution and a higher increase in the number of people in cities over the coming years, a plot of land in a natural region will be even more valuable.
What is RERA?
RERA stands for Real Estate Regulatory Authority, which has been brought under the Real Estate (Regulation and Development) Act, 2016, in order to bring transparency, accountability, and safety to the real estate sector in India. Every state has its own RERA authority, for instance, MahaRERA in Maharashtra.
RERA applies to:
- Residential & commercial projects
- Land development layouts
How RERA Protects Land & Plot Buyers
1. Ensures Only Legal, Approved Projects Are Sold
All projects have to be registered with RERA before developers can sell any land or plots.
This makes sure that:
- The land title is checked
- The layout plan is approved.
- Permissions are checked
2. Mandatory Disclosure of Project Details
RERA compels the developer to disclose :
- Details of land ownership
- Layout and plot sizes
- Approvals & Sanctions
- Development Timeline
- Amenities promised
- No hidden information or false promises.
- Restrict Misleading Advertisements
A builder cannot advertise or sell plots or unapproved schemes unless the project is registered at RERA and has a valid RERA number.\
3. Prevention of Money Misuse
Developers must maintain 70% of buyers' money in a separate bank account for:
Land development and infrastructure
They are prohibited from making transfers to other projects.
Protection: It keeps projects from being delayed or abandoned.
Severe Penalties on Developers for delays in development, illegally changed outlays or failure to deliver what was promised.
RERA can fine it, freeze accounts, or cancel the project registration.
4. Grievance Redressal Made Easy
Buyers can submit grievances directly to RERA online for delays , fraud, non-delivery or wrong information.
RERA resolves cases faster compared to civil courts.
Protection: Consumers receive fast, inexpensive justice.
5. Open Sales Arrangements
RERA mandates a standard sale agreement, preventing developers from including unfair clauses.
6. Assurance of Timely Delivery
If the developer delays work beyond the committed timeline, the buyers are entitled to compensation.
Interest Refund in case of exit (if they wish to)
Safety: The buyer's investment remains secure.
Land is one of the few assets that appreciates consistently when supported by the right set of external factors. Its value seems static but through time, it gets shaped by infrastructure, location, policy changes, and socio-economic demand. Here are the seven major factors that influence long-term appreciation.
1. Location & Connectivity
The most important factor influencing land value is still location. Plots near developing cities, planned highways, transportation hubs, or industrial corridors appreciate considerably more quickly. Increased demand and consequently higher prices are the results of improved connectivity, such as new expressways, metro links, widened roads, or airport improvements.
Improved logistics, shorter travel times, and increased residential and commercial interest are all benefits of improved access. This frequently results in a discernible rise in real estate prices even before infrastructure projects are finished.
2. Infrastructure & Basic Utilities
Availability of water supply, electricity, road access, drainage, and telecom connectivity adds immediate usability and desirability to land. Even raw plots with easy access to utilities enjoy a higher valuation.
The areas in which local authorities invest, such as streetlights, sewage systems, waste management, or road widening, become naturally more attractive for both developers and end-users. Infrastructure development often initiates multi-year appreciation cycles in surrounding land.
3. Zoning Ordinance & Land-Use Approval
Government zoning policies directly impact the value of land. Land zoned residential, commercial, or industrial sells at a higher price than strictly agricultural areas because of the higher development potential.
Prices for land that can be lawfully rezoned or converted—for instance, from agricultural to residential or commercial—usually rise quickly. In a similar vein, clear title deeds, uncontested ownership, and the absence of litigation boost marketability and buyer confidence, which drives up prices.
4. Supply-Demand Disequilibrium
Land is intrinsically scarce. As populations grow, cities expand, and industries migrate to newer areas, the demand for usable land goes up, but its supply remains fixed.
High-growth areas, especially tier-I and tier-II cities, tend to enjoy sustained demand from both buyers and developers. When demand surpasses supply, appreciation becomes inevitable. This holds true to a large extent in suburban corridors where urban sprawl transforms the countryside into residential and commercial hotspots.
5. Future Development Potential
Land appreciation is highly dependent upon the expectations of future development. Announcements related to:
- new highways
- metro or rail corridors
- industrial parks
- IT hubs
- logistics zones
- residential townships
…tend to drive early investor interest and cause value increases even before construction starts.
Speculation is seldom all wrong-it simply mirrors genuine future potential. As a rule, the investors who identify early signs of urban growth usually benefit the most.
6. Natural Features & Environmental Conditions
Topography, soil quality, access to water, and lack of environmental hazards are highly influential in determining value, particularly for agricultural, resort, or residential land.
The lands that have beautiful scenery, a body of water around it, or even slight slopes command better prices. In contrast, land requiring heavy levelling, environmental clearance, or flood mitigation appreciates more slowly because of the high cost of development involved.
7. Social Amenities & Neighbourhood Growth
Land demand is boosted by the presence of schools, hospitals, markets, shopping centres, parks, and public services in the area. When an area becomes socially well-developed, it attracts families, businesses, and builders, thereby establishing a long-term upward trend of land price improvements.
Even agricultural land near expanding residential belts can appreciate dramatically once neighbouring regions begin to urbanise.
Conclusion
Accessibility, infrastructure, legal clarity, development potential, environmental quality, and social growth all contribute to an increase in land value. Even though land is a reliable long-term investment, investors can find plots with the highest potential for appreciation by understanding these seven factors. Land can provide substantial returns for decades if strategic research and due diligence are done.
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1. Ownership & Title Documents
Mother Deed Check and Original Title Deed
Verify the full ownership chain (at least 30 years, if feasible).
Verify that all documents have the same names, survey numbers, and plot details.
Check to see if he has the complete legal authority to sell the property.
2. Encumbrance Check
Get an Encumbrance Certificate (EC for at least 30 years.
There are no mortgages, liens, loans, court orders, or attachments
Verify with the records of the SRO
3. Property Tax & Bills
Property tax receipts are updated.
Request the last 3–5 years' tax payment history
Check for pending dues: electricity, water, society charges, maintenance
4. Verification of Land & Plot
Verify land classification: non-agricultural, NA-residential, NA-commercial, etc.
Check government records for restricted / acquisition zones
Verify property is not under forest land, ceiling land, grazing land, or CRZ restrictions
Check F-Line 7/12 Extract, Property Card, Mutation Entries
5. Legal Clearances
Confirm Approvals from Town Planning Department
Ensure that the approved plan/development permission is current
6. Verification of Seller's Identity
Verify the seller's PAN, Aadhaar, passport, and address proof
If co-owned, check consent from all co-owners
If a Power of Attorney is used, ensure:
- It is registered
- Seller is alive
- POA is specific to the property and valid
7. Verification against Government Records
Property matches records in the local revenue office
Verify mutation entries for accuracy, and update them
Confirm the property is not marked as disputed / government-owned / encroached
8. RERA Check (If Applicable)
Check the project and builder on the RERA website
Check:
- Approvals
- Project status
- Complaints
- Background history of litigation
9. Affidavit of Title
Obtain a legally notarised Affidavit of Title from seller
10. Physical Verification
Examine property lines with a certified surveyor
Verify that the fencing corresponds to the survey numbers.
Consult your neighbours for firsthand confirmation.
Check for disputed pathways or encroachments.
11. Lawyer Review
All documents to be verified by a property lawyer
Get a written Title Search Report
Certificate of Legal Clearance Final Step: Safe Payment
Make payments only through bank transfer
Never pay without an Agreement to Sell
Register the property immediately after payment
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