Maharashtra: Cabinet to give final approval on concession to lease hold property conversion

MVA government before existing had extended concessional rate of 15-25 premium charges on lease hold property conversion

Sweety AdimulamUpdated: Wednesday, July 06, 2022, 11:58 PM IST
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Maharashtra: Cabinet to give final approval on concession to lease hold property conversion | PTI

Mumbai: The Maha Vikas Aghadi (MVA) government in its last cabinet meeting had extended the concessional rate of 15-25 per cent of premium charges on lease hold property conversion to freehold. Following which a government gazette was issued on July 5, giving further extension with calling suggestion and objection till August 4. Now, the newly-formed government of Eknath Shinde and Devendra Fadnavis will accord final approval to it.

President, Federation of Grantees of Govt Lands, Salil Rameshchandra said, the concessional scheme got over on March 7 this year and hence they had asked for extension.

He expressed confidence that the new government will not create hurdles in this extension as the earlier benefit of discount was also given during the BJP-Sena coalition government.

The federation has been urging the government to reduce the concessional rate to five per cent similar to the Nazul land.

Rameshchandra said, “Many cooperative housing societies that are on leasehold land cannot even pay the concessional 15-25 per cent premiums charges on ready reckoner rate, which is also high. The tenants are mostly senior citizens and from middle income group. If one goes by numbers, the conversion charges go into crores of rupees which is unaffordable. We will press our demand of 5 per cent on lease hold property conversion before the government.”

As per the extended draft gazette notification issued on July 5, the cooperative housing societies will have pay 15 per cent, non-cooperative 25 per cent and commercial or individual lease owner will have to pay 50 per cent of premium charges on ready reckoner rate of conversion to freehold land from lease hold land.

In 2014, housing societies on collector land across Maharashtra drew up a petition to the state to convert Class II Collector Land (leasehold) to Class I (freehold). The demand was made in order to allow the owners of housing, commercial and industrial leasehold land to freely redevelop the land without seeking government permissions for every redevelopment. The land was given on occupancy basis, which meant the ownership was given to individual buyers. In 2016, the government issued an order allowing the conversions by paying premiums based on ready reckoner rates. The premiums were lower for residential land and higher for commercial and industrial land. In September 2018, the conversion charges were hiked to 50 per cent of the ready reckoner rates. This drew a lukewarm response due to high premiums charged for conversion to freehold land.

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