For many decades, several states of India have utilized the plot reconstitution and land readjustment technique for managing urban development. As land is a limited resource subsequently well-organized land management techniques are crucial for its acquisition and development. The land readjustment process is one exemplary land assembly tool, which many countries including Japan, Germany have adopted and it's known as town planning scheme in India. This is the idea of reshaping or re-plotting a parcel of land and developing it with basic infrastructures, amenities and services like roads, parks, social infrastructure and utilities. Rapid urbanization in the developing world is causing a lack of municipal resources with public services falling further and further behind demand. New and redesigned settlements are needed but appropriate plots of land are not usually available. More efficient distribution of land is required. Land readjustment is one of the approaches to deal with these urbanization problems. This paper attempts to explore the use of this innovative means of land development with a view to assessing the potentiality and constraints in the land readjustment process and its use and identifying critical areas where further refinements would be desirable.