A significant shift in land acquisition policy has been introduced in Maharashtra, with a choice-based compensation framework being extended to landowners affected by the Karnala-Sai-Chirner (KSC) New Town project under Mumbai 3.0. For the first time in such a project, multiple compensation routes are to be offered instead of a single acquisition formula. Through this model, greater flexibility is intended to be provided to landowners whose properties fall within the notified development zone. The online selection process is scheduled to be opened from April 27 by the Mumbai Metropolitan Region Development Authority (MMRDA).
The new framework is to be applied to 124 villages located in Uran, Panvel, and Pen talukas of Raigad district. These villages have been brought under the proposed New Town Development Area (NTDA), which has been planned as a large urban expansion belt. It has been stated that landowners from these areas will be required to submit documents such as Aadhaar details and land ownership records through the official MMRDA website in order to participate in the process. By this digital mechanism, the compensation choice is expected to be recorded in a structured and transparent manner.
Three separate options have been made available under the policy. Through the first route, land may be acquired on the basis of mutual consent, with compensation to be finalised through agreement under the Maharashtra Regional and Town Planning Act, 1966. Under the second route, direct cash compensation may be replaced by development-linked instruments such as Floor Area Index (FSI) or Transferable Development Rights (TDR). By this method, a share in future development value is intended to be provided to affected landowners instead of a one-time monetary settlement.
The third route has been presented as a land pooling model. Under this proposal, 22.5 per cent of developed land is to be returned to the original landowners after the completion of development work. However, this option has not been received without concern. In parts of Raigad, apprehensions have already been raised over displacement, and fears have been expressed regarding the possible effect on agriculture and fishing-based livelihoods. It has been felt by many residents that traditional occupations may be disturbed if the transition is not handled sensitively.
The project itself has been planned over an area of 323 square kilometres, and the influence zone of the Atal Bihari Vajpayee Sewri–Nhava Sheva Atal Setu has also been included within its larger scope. A broader urban transformation has therefore been envisioned, with the area being linked to future infrastructure-led growth. According to officials, landowners are not merely to be treated as recipients of compensation, but as participants in the value creation process associated with the emerging urban ecosystem.
This policy direction has been supported by senior MMRDA officials. It has been stated that the purpose of the framework is to ensure that landowners are made “partners in development” rather than being left with only one-time compensation. MMRDA Metropolitan Commissioner Dr Sanjay Mukherjee has also been quoted as saying that the success of the initiative would depend on the willingness and confidence of citizens to participate. It has further been emphasised that participation is intended to remain voluntary and positive.
The foundation for this new model had been laid through a government resolution issued on March 16, 2026. Through that resolution, a departure from the traditional land acquisition approach had been outlined, and a hybrid system combining acquisition with land pooling had been introduced. As a result, a more consultative and participatory approach to development is now being attempted in one of the state’s major urban expansion projects.
Overall, a notable policy experiment has been set in motion. While flexibility and stakeholder participation have been highlighted as key strengths of the model, its long-term success is likely to be determined by the level of trust that is built among affected communities. In the months ahead, the response of landowners in Raigad will be closely watched, as the future of this development framework is expected to be shaped by both public acceptance and administrative execution.
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