Bhopal (Madhya Pradesh): The Urban Development Department has proposed at least 10 amendments to the Municipality Immovable Property Transfer Law, 2016. In this regard, it has also sought suggestions from the Confederation of Real Estate Developers' Associations of India (CREDAI).
An officer posted at the Directorate of Urban Administration and Development said that the amendments seek a 10-year minimum lock-in period before allotted land can be converted into freehold property.
In other words, an allotted plot cannot be made freehold until 10 years have elapsed from the date of allotment. Earlier, after obtaining the land patta, allottees could apply to convert it into freehold property.
The amendment seeks to curb this practice as it was causing revenue loss to municipalities. Converting land into freehold property will now become costlier. The period for payment of lease rent is also likely to be increased.
Moreover, if land use has been changed from residential to commercial in the master plan, the local body can permit commercial use by charging a 5% premium, 5% rent and 1% additional rent.
One amendment also seeks to impose a compounding fee in cases where construction has been carried out without sanction on the land.
Apart from this, there have been instances where the original records of applicants are missing from the offices of municipalities and municipal corporations. In such cases, new records can now be created upon an application by the applicant.
Key highlights
10-year minimum lock-in before freehold conversion
Higher charges for freehold conversion
Longer lease rent payment period
Charges for residential-to-commercial land-use conversion
Compounding fee for unauthorised construction
Provision to recreate missing property records
