Maharashtra Repeals 'Tukde Bandi' Law: Relief for Property Owners
The Maharashtra government has officially repealed the controversial 'Tukde Bandi' law, bringing relief to thousands of property owners, particularly in urban areas like Pune.
Property OwnersMaharashtraTukde Bandi LawGunthewariRegularizationReal Estate MaharashtraJul 25, 2025
The law had imposed strict restrictions on subdividing land into smaller parcels, which had stalled the regularization of numerous properties developed under the gunthewari system—particularly those within the jurisdiction of Pune Municipal Corporation (PMC) and other urban local bodies.
Announcing the repeal during the ongoing monsoon session of the Maharashtra Assembly, Revenue Minister Chandrashekhar Bawankule stated that the government will now allow the regularization of plots up to one guntha (1,089 sq ft), provided the subdivision took place before the cutoff date of January 1, 2025.
“This decision paves the way for lakhs of families to obtain property titles, building permissions, and legal ownership rights,” Bawankule emphasized. “We estimate over 50 lakh families across Maharashtra will benefit from this move.”
According to PMC records, the city has nearly 1 lakh properties under its limits that fall under the gunthewari category, but only 800 have been regularized in the past five years due to legal hurdles created by the fragmentation law.
Citizens’ groups welcomed the move but urged the government to revise the cost structure. “While repealing the Act is a step in the right direction, high costs for registration, regularization, and penalties remain a burden for small property holders,” said Sudhir Kulkarni of the Nagari Hakka Samiti. “Reducing these fees across departments like the Inspector General of Registration (IGR) and local bodies will encourage more people to come forward.”
The gunthewari system refers to land that was subdivided without proper authorization and often developed with structures, excluding encroached areas. Such plots fall under the ambit of the Maharashtra Gunthewari Development (Regularization, Upgradation, and Control) Act, 2001.
Urban land expert Prasad Hasabnis pointed out that the current charges for regularizing these plots are significantly higher compared to those under the older scheme introduced two decades ago. “Many small property owners are simply unable to afford the steep fees. If the state wants mass participation, affordability must be a priority,” he said.
An official from PMC’s building permissions department confirmed that the civic body is awaiting further instructions. “The state has set up a committee to review the implementation process after repealing the law. Based on the committee’s recommendations, we will revise our rules under the Gunthewari Act,” the official stated.
With this policy shift, thousands of Pune residents may finally be able to secure legal status for long-pending properties—potentially unlocking both civic infrastructure upgrades and much-needed revenue for local authorities.
Frequently Asked Questions
What is the 'Tukde Bandi' law?
The 'Tukde Bandi' law, officially known as the Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act (2015 Amendment), imposed restrictions on subdividing land into smaller parcels, which had stalled the regularization of numerous properties developed under the gunthewari system.
Why was the law repealed?
The law was repealed to provide relief to thousands of property owners who were unable to regularize their properties due to the restrictions imposed by the law. This move is expected to benefit over 50 lakh families across Maharashtra.
What is the gunthewari system?
The gunthewari system refers to land that was subdivided without proper authorization and often developed with structures, excluding encroached areas. Such plots fall under the ambit of the Maharashtra Gunthewari Development (Regularization, Upgradation, and Control) Act, 2001.
What are the benefits of repealing the law?
Repealing the law will allow the regularization of plots up to one guntha (1,089 sq ft), provided the subdivision took place before January 1, 2025. This will enable property owners to obtain property titles, building permissions, and legal ownership rights.
What are the concerns raised by citizens' groups?
Citizens' groups have welcomed the repeal but are concerned about the high costs for registration, regularization, and penalties. They urge the government to reduce these fees to encourage more people to come forward.
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