Hello Pradeep
It is required if you were not born in Maharashtra. Without it your state rank will not be taken into account and your all rank will be taken.
The all India Rank will be about 200 ranks more than your state rank, which will affect your chances of getting into a college.
So if you are not born in Maharashtra, but are living here for 15 years, Please maje a domicile as it will help you a lot.
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