MUMBAI, April 23 -- In a significant policy shift, the Maharashtra government will unlock more than 173,560 hectares of land by granting full ownership rights to the lessees on payment of a premium. The decision was taken in the state cabinet meeting on Wednesday. These land parcels were allotted nearly six decades ago primarily to landless individuals especially farmers, ex-servicemen and individuals from weaker sections with Occupancy Class II rights for cultivation. They are land parcels acquired by the state under the Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 1961. From 2016, the state government began granting ownership rights to Occupancy Class II land reserved for residential, commercial and industrial use. For the first time, the government has extended a formal policy framework to convert acquired holdings into full ownership (Class I), thereby removing long-standing limitations. Under the new policy, beneficiaries can obtain ownership rights by paying a conversion premium of up to 30% of the land's value, calculated as per the Annual Statement of Rates (ASR). This move is expected to enhance land liquidity, enable development and provide revenue to the cash-strapped state exchequer. Plots allotted under occupancy Class II give conditional ownership, under which the allottee does not have to pay annual rent. However, restrictions on the land use remain the same as for leased plots. Since these lands were held under Class-II occupancy, the beneficiaries were not permitted to use them for non-agricultural purposes. Additionally, for any transfer of such land, prior permission of the collector was mandatory, and an unearned income charge, at 50-75% of ASR, had to be paid each time. "The state government has distributed a total 173,560 hectares to 109,868 beneficiaries, who will benefit with this decision," said a senior official from the state revenue department....