Mumbai: Real estate stakeholders, societies seek EMI facility

President, Federation of Grantees of Govt Lands, Salil Rameshchandra said, at present only 30 days are offered to make the payment

Sweety AdimulamUpdated: Tuesday, July 12, 2022, 09:29 AM IST
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Mumbai: Real estate stakeholders, cooperative housing societies and the Federation of Grantees of Govt Lands associations have sought more window time for payments of premium for the leasehold property conversion.

President, Federation of Grantees of Govt Lands, Salil Rameshchandra said, at present only 30 days are offered to make the payment. The government should provide more window periods by giving quarterly payment options as people who are currently staying in these properties primarily belong to the middle-income group.

He added, “Conversion of leasehold property to freehold opens up a lot of opportunities and discard complications associated with the government lands. Getting approval of redevelopment from the government is a tedious process. Moreover, a freehold land title offers more credit opportunities for the societies and developers than on leasehold land.”

Anand Gupta, the chairperson, the Housing and RERA Committee of Builders Association of India (BAI), commented that raising the premium amount for conversion of property title from leasehold to freehold requires crores of rupees.

“Raising such a huge amount by a co-operative housing society is a task. Thus, it is necessary to provide EMI facility which will make their job easy and further the redevelopment properties will get a major push,” he opined.

The Free Press Journal reported that the Maharashtra government led by Maha Vikas Aghadi (MVA) in the last cabinet extended the discount on the conversion of leasehold property to freehold property to 15-25 per cent from 60-70 per cent for two more years. The previous discount expired in March 2022.

Ramesh Prabhu, chairman, Maharashtra Societies Welfare Association also agreed and pressed for the demand of more period and installment facility of premium charges to expedite redevelopment projects.

The MVA government had extended draft gazette notification on July 5, allowing the cooperative housing societies to pay 15 per cent, non-cooperative 25 per cent and commercial or individual lease owner to pay 50 per cent of premium charges on ready reckoner rate of conversion to freehold land from leasehold land.

The gazette is also called suggestions and objections till August 4 this year.

The Free Press Journal reported that the new Eknath Shinde-Devendra Fadnavis government may take a decision in case the conversion premium percentage is further planned to be reduced as demanded by the federation of Grantees of Govt Lands to 5 per cent.

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