'Concessional Premium Rates Will Be Given To Those Who Apply For Land Conversion By March 7': Maharashtra Govt Informs Bombay HC

'Concessional Premium Rates Will Be Given To Those Who Apply For Land Conversion By March 7': Maharashtra Govt Informs Bombay HC

Initially, the government had said that the benefit was applicable to only those who make the payment by March 7. It had also said that it will not be extending the March 7 deadline for availing the benefit of the concessional premium.

Urvi MahajaniUpdated: Saturday, March 02, 2024, 11:13 AM IST
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Bombay HC | PTI

Mumbai: The Maharashtra government on Friday clarified before the Bombay High Court that it will extend the benefit of concessional premium for land conversion from leasehold to freehold to those who apply for the same on or before March 7.

The clarification was issued after the high court, on February 27, questioned 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 by March 7, but have neither received the demand order nor made the payment.

Initially, the government had said that the benefit was applicable to only those who make the payment by March 7. It had also said that it will not be extending the March 7 deadline for availing the benefit of the concessional premium.

Extension Only Until March 7

During the hearing on Friday, additional government pleader Jyoti Chavan told a bench of Justices BP Colabawalla and Somasekhar Sundaresan that the government has issued a circular on Friday stating that it will extend the benefit of the concessional premium to only those applicant who approach them by March 7.

Three months within the filing of the application, the government will decide on the same and issue a demand notice. On receiving the demand notice, the applicant has to make the payment within 21 days thereafter, Chavan said.

Only under these circumstances, the government would be extending the benefit of concessional premium to housing societies and private entities, Chavan added.

Govt Circular Issued Regarding Extension

A government circular was issued on February 21 said that it will extend benefit of concessional premium to only those residential and commercial premises who have applied for, have received demand order and made the payment for land conversion. Hence, the court had sought clarification from the state.

In December 2012, the government issued a policy by which 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 five years of the issuance of the GR. After three years, the charges would be 60% and 75% for residential and commercial properties respectively.

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