Maharashtra Changes Land Acquisition Compensation Calculation Method

Maharashtra's Revenue Department has revised how it calculates the additional 12% annual payment to landowners during land acquisition. The new Government Resolution, issued September 10, restricts the calculation to the market value of land alone, excluding the government-prescribed multiplier factor that was previously applied.

The change affects major infrastructure projects requiring extensive land acquisition. The Maharashtra State Road Development Corporation sought clarity on the calculation method for projects including the Virar-Alibaug corridor and Shaktipeeth Expressway. Under the revised approach, if land has a market value of ₹1 crore with a multiplier factor of two, the 12% annual payment will be calculated on ₹1 crore, yielding ₹12 lakh instead of ₹24 lakh.

The government said the move aims to bring uniformity in calculations, accelerate acquisition timelines, and reduce disputes and litigation. The revision replaces earlier instructions from October 2016 and follows consultation with the Attorney General.