Issued by: Brihanmumbai Municipal Corporation Chief Engineer Development Plan | 01 April 2026
The BMC's Development Planning Department has issued this administrative circular to notify all municipal zones, ward offices, and building proposal systems regarding the introduction of a dedicated accounting ledger. Historically, landholders in Mumbai were subjected to a slow, dual-permission framework, requiring independent Non-Agricultural (NA) clearance from the District Collector alongside standard municipal construction approvals. Property owners were also burdened with a repetitive double-taxation system consisting of continuous annual NA revenue assessments and municipal property taxes.
To optimize statutory workflows and improve the ease of doing business, the State Government enacted the Maharashtra Land Revenue Code (Second Amendment) Act, 2025, which completely abolishes separate collector-level NA permissions for lands already zoned as developable under a sanctioned Development Plan (DP). The responsibility to collect a revised, one-time Conversion Premium is now shifted directly to the Planning Authority at the time of plan approval. Consequently, this circular formalizes the creation of General Ledger (GL) Code 140140137 to systematically accept and split these incoming balances.
As per the revised provisions, the requirement for obtaining separate Non- Agricultural (NA) permission from the Collector has been abolished for lands where development is permissible under the Development Plan (DP)
Chief Engineer Development Plan BMC | 04 October 2001
Key Highlights
Collector NA Clearance Abolished: Separate conversion tracking from the Collector's office is eliminated for all developable plots under the master layout.
New Dedicated GL Code: Establishes GL Code 140140137 ("OT Prm fr NA Con NT") to collect and remit the upfront conversion fees directly within the BMC.
Completely Exempt from GST: Formal advice from specialized tax consultants confirms the premium is classified as non-taxable under Central Notification No. 14/2017.
Mandatory Pre-Approval Collection: The premium is calculated based on plot dimensions and must be recovered before final building plan sign-offs are granted.
Statutory Revenue Sharing: Retains 30% of the premium locally for Class A Corporations like the BMC, while remitting the remaining 70% to the state treasury.
Annual NA Assessments Terminated: The continuous annual NA tax collection system is discarded, and historical recurring tax arrears are fully waived up to the amendment date.
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Following the substitution of Section 42 and Section 47 of the Maharashtra Land Revenue Code, 1966, the payment of land conversion fees is linked directly with the development permission layer. To ensure collected monies do not cause approval delays, the BMC created GL Code 140140137. During building proposal evaluations, the premium is computed by matching the exact plot area against the active Annual Statement of Rates (ASR). Since it operates as a statutory sovereign charge, it is classified as non-taxable, matching the guidelines of Notification No. 14/2017-Central Tax (Rate).
For Class A entities like the BMC, the circular mandates a 30% retention rate to build up local municipal reserves. The remaining 70% must be remitted directly to the State Government's Revenue Department by depositing it under the specified revenue head "0029 Land Revenue" using the digitized GRAS system.
The underlying Government Resolution provides a clear, one-year transitional compliance window for lands converted under earlier frameworks:
The new GL code is created to record and manage the collection of One-Time Non-Agricultural Conversion Premium in a standardized and trackable manner within BMC financial systems.