Mumbai, February 27: The Bombay High Court has sought clarification from the government whether it is willing to grant relief to those societies and private entities who have made application for land conversion from leasehold to freehold, but have neither received the demand order nor made the payment.
The government had told the HC early this month that, as of now, it will not extend the deadline of March 7 for receiving applications from housing societies and private entities for land conversion and will issue a circular to the effect soon.
The circular, issued by the government on February 21, states that it will extend benefit of concessional premium to only those residential and commercial premises that have applied for, have received demand order and made the payment for land conversion.
What Circular Says?
According to the circular, only those applicants who have received the demand order to pay concessional premium, have to make the payment before March 7 to avail of the concessional facility. The benefit will not be extended to those who have received the demand order, but failed to make the payment by March 7.
Interestingly, those who have made the application but have not received the demand order from the government would not get the benefit of the concessional premium, the circular states.
Navroz Seervai, counsel for some of the petitioners, submitted that the circular goes against those who have applied to the government for availing concessional premium but have not received the demand orders. Also those who have received payment orders but have not made payments. Considering the amount involved, some time should be given to make the payment.
If Government Fails To Clarify.....
Government pleader Jyoti Chavan said that she would take clarification from the government. A bench of Justices BP Colabawalla and Somasekhar Sundaresan remarked that if the government fails to provide the clarification, it will pass an order to protect the rights of those persons whose applications are pending before the government and are yet to be decided.
Initially, the government had issued a policy in December 2012 wherein it increased lease rent by 25% for residential properties and by 50% for commercial properties. It also granted the option to these entities to purchase the land by opting for land conversion from leasehold for freehold land by paying 20% of the ready reckoner rate. At the time, several societies had approached the high court challenging the December 2012 GR.
In the meantime, the government issued another GR on March 8, 2019 under which it permitted land conversion on payment of 15% and 50% of the lease amount for residential and commercial properties respectively. The rate was available for the first three years of the issuance of the GR. After three years, the charges would be 60% and 75% for residential and commercial properties respectively.
However, due to pandemic-induced lockdown, the government extended the deadline by one more year, till March 2023. Last year, the government granted an extension by one more year, which expires on March 8 this year.
