Third Mumbai (KSC New Town): Land Acquisition, Compensation and Current Status

Acquisition Model: Consent-Based With Three Compensation Routes

In a first-of-its-kind move, the Mumbai Metropolitan Region Development Authority (MMRDA) is letting landowners pick how they want to be compensated for land being acquired for the Karnala-Sai-Chirner (KSC) New Town project under Mumbai 3.0, with the online selection process opening on 27 April 2026. This follows a government resolution issued on 16 March 2026, marking a shift from conventional land acquisition towards a hybrid acquisition and land pooling policy.

Landowners can choose from three routes:

• Mutual consent cash compensation: a mutual consent-based acquisition, governed by the Maharashtra Regional and Town Planning Act, 1966. One report describes this as compensation as per the LARR Act, 2013 at prevailing market rates for those not opting for land pooling.
• FSI/TDR route: replaces cash payouts with Floor Area Index (FSI) or Transferable Development Rights (TDR), giving landowners a share in future development value instead of a one-time payment.
• Land pooling (22.5% model): following the successful CIDCO model used in Navi Mumbai, the GR offers consenting landowners 22.5% of the developed land back in exchange for their raw plots, and these returned plots will be "infrastructure-ready," meaning they come with pre-installed roads, electricity, water, and sewerage.

There is a carve-out for very small holdings: owners with less than 40 square meters receive mandatory cash compensation. MMRDA has stressed the process is voluntary: MMRDA officials have assured that landowners who do not consent to the acquisition will not face any coercion, and the project is also designed to steer clear of ecologically sensitive areas such as mangroves, forests, and Coastal Regulation Zone (CRZ) areas within the New Town boundaries.

Villages Covered

The Government of Maharashtra, by notification dated 15 October 2024, appointed MMRDA as New Town Development Authority (NTDA) for 124 villages in Uran, Panvel and Pen Tehsil in Raigad District, in an area comprising 323.44 sq km. All 124 villages fall within a single district (Raigad), spread across the three named talukas — no official taluka-wise sub-count has been published so far.

Named villages include Dighode, Kanthavali, Veshvi, and others, and Chirle, cited as the KSC gateway near the Atal Setu landing point. The name of the new town itself honours three villages: Karnala, known for the Karnala Bird Sanctuary and fort; Sai, in the Western Ghats; and Chirner, near the Jawaharlal Nehru Port Trust.

A separate, more recent report describes a much larger area under discussion, saying the new urban centre is being planned around the Navi Mumbai International Airport and will cover large parts of Panvel, Pen, Karjat and adjoining regions in Raigad district, with the latest expansion including 52 villages from the Karjat-Neral belt and 22 villages from the Alibag-Poynad region, naming villages such as Neral, Mohpada, Bekare, Kadav, Diksal, Vengaon, Umroli, Humgaon, Mulgav, Dhak, Patharaj, Pali, Vashvali, Poshir, Dahivali, Kondhane, Poynad, Pezari, Shahbaz, Ambepur, Navkhar, Kelwane, Kurul, Varsoli, Mapgaon, Chaul and Akshi. This expansion has not been confirmed on MMRDA's own NTDA notification page, which still lists the original 124-village, 323.44 sq km footprint — readers should treat the wider figure as reported, not officially notified, as of mid-2026.

Budget Allocated

Out of Rs 4,600 crore allocated for various new projects, MMRDA has earmarked Rs 4,000 crore for the Third Mumbai project in its 2026-27 budget, which is a record budget of ₹48,073 crore for 2026-27, of which 87% is directed to infrastructure works.

On cost recovery, the policy states that the cost of land acquisition, compensation and infrastructure development will be recovered from industry allottees in installments, with MMRDA levying a 15 percent establishment charge. To draw investment, industries bringing FDI to the Atal Setu influence area will be given priority in land allotment in line with MIDC policy, though such investors must acquire a minimum of 100 acres and invest at least Rs 250 crore per 100 acres within four years, excluding land cost. Up to 25 percent of the total developed area will be allowed for FDI projects. Related, smaller allocations reported alongside the KSC budget include Rs 500 crore for the Raigad Pen Growth Centre and Rs 100 crore for the Kharbav Integrated Business Park.

Disputes and Farmer Opposition

Opposition has grown alongside the acquisition rollout. Hundreds of farmers and residents from the 124 villages across Uran, Panvel, and Pen pledged to oppose the project during a public convention organised by the MMRDA KSC Navnagar Virodhi Samiti, where participants vowed not to surrender their land and said they would continue their protest through legal and democratic means.

A separate protest was led by the Parivartan Gaothan Vikas Social Organization: strong opposition emerged against the government's decision to compensate farmers with 22.5% developed land in lieu of acquisition, with the organisation's president Kiran Patil writing to the Chief Minister that the policy could push local farmers into economic distress and fails to address their long-term rehabilitation needs. The group has demanded that the land acquisition process be carried out under the 2013 LARR Act, which mandates a social impact assessment prior to acquisition, ensures higher compensation, and provides rehabilitation and resettlement benefits. Patil also warned that failure to conduct proper village demarcation and account for ground realities could lead to resistance similar to that seen in CIDCO and NAINA project areas, where land acquisition has faced prolonged opposition.

At a farmers' meeting, activist Ulka Mahajan said the project ignores laws, democracy and constitutional norms, while Samiti representative Rupesh Patil advised his peers not to fall prey to inducements that could ruin their homes.

MMRDA, for its part, frames the process as voluntary and participatory. Metropolitan Commissioner Sanjay Mukherjee said: "Accordingly, we are offering multiple options to landowners during the land acquisition process, empowering them to make informed choices that best suit their aspirations... The success of this transformation will depend on the willingness and confidence of citizens to participate, and we are committed to ensuring that this participation is both voluntary and positive." Industry voices have echoed the need for trust-building: Naina Builder Welfare Association president Prakash Baviskar said "it is necessary to make the landowners not beneficiaries but partners in development," adding that "Trust, fair return and timely implementation are the three pillars of the success of this project."

Current Stage (as of mid-2026)

As of early July 2026, KSC New Town land acquisition is in an early, consent-gathering phase rather than a completed acquisition. Timeline so far:

• 15 October 2024: Government of Maharashtra notified MMRDA as NTDA for the 124 villages.
• February 2026: Cabinet approved a comprehensive land acquisition policy, and roughly 200 sq km was formally handed over to MMRDA.
• 16 March 2026: Government Resolution approved the Land Acquisition and Land Allocation policy for the NTDA and future MMRDA projects.
• 27 April 2026: Online consent selection process opened, run by MMRDA.
• Late June 2026: More than 160 farmers and landowners in Raigad district had consented to acquisition, across the 124 villages within the 323.44 sq km KSC New Town area.
• Ongoing: The Maharashtra Government has moved ahead with the project's planning process by appointing a consultant to prepare the master plan, with completion targeted for August 2026. Drone-based mapping and LiDAR surveys are reported complete.

Legal and procedural risk remains: disputes over village boundaries and forest land, which is excluded from the GR, could cause localised delays. Farmer groups continue to press for LARR Act protections rather than the current GR framework, so the compensation model itself may still be revised before large-scale physical acquisition begins.