Landowners Can Now Sell Up to 500 Sqm Without Layout Approval
In a landmark move aimed at reviving the real estate sector and easing citizens’ financial burdens, the Odisha Government has relaxed long-standing restrictions on part plot sales. With the passage of The Odisha Development Authorities (Planning & Building Standards) Second Amendment Rules on June 10, 2025, landowners can now sell subdivided plots of up to 500 square metres without seeking prior layout approval.
A Lifeline for Financially Distressed Families
This policy change is expected to bring relief to thousands across the state, especially those who have been unable to monetize their land to meet urgent needs such as medical treatment, education, or marriage expenses. The shift replaces years of stringent rules that had frozen land transactions in many urban areas, particularly Bhubaneswar.
Overcoming Bureaucratic Gridlock Since 2021
Since 2021, landowners had been caught in a bureaucratic stalemate—unable to sell, build on, or use their legally owned land as collateral. The new rules also permit co-owners to sell their share of plots, provided the area does not exceed 500 square metres, further easing the transactional bottleneck.
Agricultural Land Sales Still Require Conversion
While the amendment simplifies non-real estate part sales, agricultural lands still need to be converted for residential use before any sale, subject to specific guidelines. These conversion stipulations remain in place to ensure planned urban development.
Addressing Apartment Registration Backlogs
In a broader move to streamline land and housing administration, the state is also working to resolve pending apartment registrations. The current changes stem from a draft resolution released on March 25, 2025, which invited public feedback before being finalized in June.
Revenue Implications and Policy Goals
Speaking on the development, Revenue and Disaster Management Minister Suresh Pujari said:
“People faced years of hardship, unable to sell plots for critical needs. This change enhances the ease of living while increasing state revenue.”
Indeed, the policy aims not only at easing citizen distress but also at boosting state income. In FY 2024–25, stamp duty and registration fee revenues fell to ₹1499 crore, significantly short of the projected ₹2417 crore—highlighting the financial impact of previous restrictions.
Challenges and Grey Areas Remain
Despite the relief, some complications persist. Existing regulations still require all sold plots to have road access, which may hinder development in some regions. Moreover, the overlap with RERA (Real Estate Regulatory Authority) regulations could lead to legal ambiguities, as noted by legal commentators and citizens on social media platform X.
Optimism in the Real Estate Sector
Real estate developers and landowners are expected to be the primary beneficiaries of the amendment. By removing bureaucratic obstacles, the policy is set to revive land transactions, encourage orderly urban development, and stimulate economic growth across the state.
As land file processing has already begun, the move signals a new chapter in land reform for Odisha—one where citizens can access the value of their property more freely while the state secures a stronger financial footing.