Archive · 24 Sep 2026
Maharashtra Limits 12% Annual Land Acquisition Payment Calculation
Maharashtra has changed a rule about extra money paid to landowners when their land is acquired.
The extra payment is 12% each year.
It will now be calculated using only the land’s basic market value.
A government multiplier will not be added first.
For example, land worth Rs1 crore with a multiplier of two will generate a Rs12 lakh annual payment, not Rs24 lakh.
The Revenue Department announced the change in a Government Resolution dated September 10.
The change may affect large projects that need to acquire substantial amounts of land.
Officials say it should make calculations more consistent and reduce disagreements.
Maharashtra has changed how the additional 12% annual land-acquisition payment is calculated.
The payment will now be based only on the land’s market value under Section 26(1).
The government will no longer apply the Section 26(2) multiplier before calculating the 12% payment.
For land valued at Rs1 crore with a factor of two, the annual payment will be Rs12 lakh instead of Rs24 lakh.
The revision is intended to standardize acquisition, speed infrastructure projects, and reduce disputes and litigation.
- Who
- The Maharashtra government’s Revenue Department, landowners, and agencies including the Maharashtra State Road Development Corporation.
- What
- The state revised the formula for calculating the additional 12% annual payment made during land acquisition.
- When
- The Revenue Department issued the revised Government Resolution on September 10; the year is not specified.
- Where
- Maharashtra, including projects such as the Virar-Alibaug corridor and the proposed Shaktipeeth Expressway.
- Why
- To create a uniform calculation method, speed land acquisition, and reduce disputes and litigation.
- Additional payment
- 12% annually during land acquisition
- Calculation basis
- Market value determined under Section 26(1)
- Discontinued method
- Applying the Section 26(2) factor before calculating the 12% payment
- Example land value
- Rs1 crore
- Example multiplier
- Two
- Result under revised method
- Rs12 lakh annual payment instead of Rs24 lakh
- Issuing authority
- Maharashtra Revenue Department