Maharashtra Allows Conversion Of All Leasehold Land To Freehold, Reduces Premium To 15%
In a move that would bring relief to as many as 3,000 housing societies in Mumbai and over 22,000 in Maharashtra, the state government has approved a proposal to allow conversion of collector land to leasehold land. The decision comes three years after it was mooted by the state’s revenue minister.
Additionally, the government also reduced the premium conversion of leasehold land to freehold land for housing purposes to 15 per cent of the ready reckoner (RR) rate. It was in September last year that the after the state approved the amendment made to the MLRC under which land for such purposes attracted a premium of 50 per cent in Mumbai. There are over 2,200 such leasehold plots in Mumbai, whose lease time is less than 99 years.
Residents had been protesting for long against the premium charged citing that it was too high for everyone to afford.
A majority of housing societies in Mumbai are on leasehold land and are located in areas, including Nariman Point, Churchgate, Dadar and Wadala.
Once converted, the residents and societies will have the right to do as they wish with the land that will be their own. Freehold land doesn’t require government permission to be sought for sale, transfer, mortgage, etc. The new rule is applicable only to plots allotted for housing societies or land for commercial purposes. However, land given to charities, hospitals, educational institutions, industry and gymkhanas cannot be converted.