Gujarat Eyes Land Reform Move To Improve Ease Of Doing Business In Realty Sector

States such as Maharashtra, Madhya Pradesh, Rajasthan, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Kerala and Odisha have already done away with the requirement of NA certificates within urban development frameworks. In many of these states, the reform has been in place for years, significantly accelerating growth in the real estate sector.

In these states, once a Town Planning Scheme, Master Plan or Development Plan is implemented, land use within the notified urban area is deemed valid as per the plan itself, eliminating the need for a separate NA permission. However, this exemption is limited strictly to TP or DP areas; NA certification remains mandatory for land outside TP limits or in rural areas.

Regulatory Approach

Gujarat currently follows a different regulatory approach. Under existing rules, developers must obtain a Non-Agricultural certificate from the Revenue Department before initiating any residential, commercial, mixed-use or industrial project. This requirement has become a major hurdle for builders and developers, leading to prolonged project delays.

Additionally, the Revenue Department faces an increasing administrative burden due to NA applications, site inspections and file movements. The absence of a plan-based automatic approval mechanism means that developer files often remain pending for months, slowing down planned urban development.

In a recent meeting between senior officials of the Central and State governments, the removal of the mandatory NA clause in TP schemes was actively discussed. According to senior officials, Gujarat is on the cusp of major reforms in the real estate sector. A top official noted that exempting NA certification in TP areas would significantly reduce the Revenue Department's workload and improve the ease of doing business. It is noteworthy that in December 2025, the Gujarat government constituted a four-member committee under the leadership of retired official C.L. Meena to suggest amendments to revenue laws, and this issue was among the committee’s key recommendations.

Industry Welcomes Move

Gujarat Builders Association office-bearer Prakash Patel said that granting NA exemption within TP schemes would curb unplanned development and make financing easier. “Land prices may increase, but housing prices will remain stable. Roads, drainage, electricity, water supply and green zones will develop strictly as per TP norms,” he said. He added that litigation would be reduced and homebuyers would be able to use projects sooner.

Another leading developer, Jagat Karani, said that the benefits of the NA exemption would extend beyond developers to the government and ordinary citizens alike. “With the elimination of procedural hurdles, the scope for corruption will also reduce. Projects stuck for years due to NA approvals will gain immediate momentum, and land falling under TP schemes will become instantly developable,” he said.

Karani further pointed out that the government would gain indirectly through higher property tax and stamp duty collections, reinforcing the economic rationale behind the proposed reform.