REAL ESTATE UPDATE
4 September, 2025
Issue No. 10/25-26
AMENDMENTS TO THE MAHARASHTRA REGIONAL AND TOWN PLANNING ACT, 1966 – EVOLUTION OF URBAN GOVERNANCE IN MAHARASHTRA
BACKGROUND
On 29th August, 2025, the Maharashtra Government implemented the Maharashtra Regional and Town Planning (Amendment) Act, 2025 (“Amendment Act, 2025”) amending several provisions of the Maharashtra Regional and Town Planning Act, 1966 (“MRTP Act”). These amendments have in principle introduced major changes enabling more nuanced micro-level planning, efficacy and fostering timelines signaling a new chapter in the evolution of the MRTP Act.
KEY CHANGES INTRODUCED
The introduction of new planning instruments notably the Local Area Plan and Structural Plan in addition to the existing Development Plan and Regional Plan mark a transformative change in the urban governance and planning across Maharashtra, as outlined below:
- Local Area Plans:
Local Area Plans (“LAP”) have been introduced to provide detailed, micro-level planning, addressing specific local needs such as urban renewal, transit-oriented development, industrial or commercial zone improvements, detailed road and street patterns, and projections for future amenities and services, along with stage-wise execution proposals and cost estimates to enable micro-planning at a local scale.
By insertion of Section 33A, the Amendment Act, 2025 introduces framework relating to the preparation of a LAP for specific localities where a draft or final Development Plan or Regional Plan already exists. It empowers the Planning Authority, or an appointed agency by the State Government, to prepare LAPs for areas in their jurisdiction. Section 33A mandates a transparent, participatory process involving public notification, consultations with landowners and stakeholders, publication of the draft LAP for objections and suggestions, and submission of the draft plan to the State Government for sanction within specified timelines, with provisions for modifications to ensure timely and effective implementation of the LAP.
- Structural Plans:
Structural Plans lay out the broad framework of development for regional or town-level roads by integrating transport networks and amenities clarifying inter- and intra-city connectivity which ensures that growth respects the area’s fundamental spatial structure.
The Amendment Act, 2025 has added Chapter III-B to the MRTP Act introducing the provision for the preparation of a Structure Plan, declaration by State Government of its intention to prepare such a Structure Plan, followed by public notification and dissemination of the proposed plan boundaries for inspection. Further, the Chapter III-B mandates appointment of Town Planning Officer for preparing the Structure Plan while considering key factors like connectivity, and the essential contents of the Structural Plan. It also includes mandate for public participation through inviting objections, submission of the plan to the State Government for sanction within prescribed timelines and process for making modifications to the Structural Plan.
OTHER KEY AMENDMENTS
- Changes in the contents of Development Plans (Section 22):
Amendment to Section 22 introduces a new sub-clause (a-1) after clause (a) of Section 22 of the MRTP Act, explicitly including proposals for allocating land for industrial and commercial purposes. The addition has been made to designate areas for specialized economic activities, resources, business districts, markets, and trading centers to facilitate development of commercial hubs, enhance connectivity for supporting urban growth and economic vitality.
- Appointment of the Town Planning Officer:
Section 60A mandates that the Planning Authority must appoint a qualified Town Planning Officer to carry out detailed surveys and analysis of the area covered by the draft scheme, preparing reconstituted plots, determining their redistribution, calculating original, semi-final, and final plot values, as well as assessing compensation and incremental contributions. Additionally, the Town Planning Officer shall handle cost estimations and other necessary activities related to scheme preparation and provide technical assistance to the Director of Town Planning, Arbitrators, and the Tribunal of Appeal.
- Deemed Approval and changes in timelines for sanction by State Government to final Scheme:
The addition of the new provisos to Section 86 allows the State Government to extend the time for sanctioning town planning schemes by up to two months for preliminary schemes and three months for final schemes through the Official Gazette notification. It further provides that if the Government fails to decide within the period, the scheme shall be automatically deemed sanctioned.
CONCLUSION
The Amendment Act, 2025 aims to modernize Maharashtra’s urban planning regime by introducing flexible, localized, and progressive instruments such as Local Area Plans and Structure Plans. The newly introduced provisions empower planning authorities with tools for micro-planning and development of specific localities, ensuring better integration of amenities, infrastructure, and transport networks to support robust economic growth and balanced spatial distribution of various urban systems.
The purpose of these amendments appears to be not only to streamline planning procedures and enhance public participation mechanisms but also to revise several provisions to ensure timely and efficient preparation, thereby improving development processes at both macro and micro levels.
| Disclaimer: This newsletter is for general information only and not intended for any solicitation. Views expressed in this newsletter are as on date and not necessarily of V Law Partners (“VLaw”). While reasonable efforts have been taken to provide correct information, VLaw cannot and does not warrant or guarantee the accuracy of the information provided in the newsletter. Readers are advised not to rely solely on this information when making any decision.
Suggestions: If you do not wish to receive our newsletters or have any comments or suggestions for us, please write to us at – admin@vlawpartners.com |