With the Brihanmumbai Municipal Corporation (BMC) deciding to revise its policy on leasehold plots, lessees will no longer be the permanent property owners of the plots they currently occupy.
Under the proposed revised estate policy, 3,395 residential buildings on civic-owned plots in south and south central Mumbai, which were given on lease for 999 years at nominal rates, will not longer be the permanent property of the lessees.
The civic body is also planning to revise the lease rent of these plots on the basis of ready reckoner rates (government determined rates for real estate transactions) while renewing the lease agreement.
However, on the positive side, the revised policy will pave the way for redevelopment of 130 dilapidated buildings, thereby benefiting around 40,000 tenants.
Under the proposed policy, out of the total 4,179 municipal plots, the administration has proposed that the 999-year long lease of 3,395 plots, which were give out on lease before the 1940's, should be scrapped.
Instead, they propose that if the properties on these plots are being redeveloped or the nature of use undergoes a change, the lease should be renewed, with maximum lease tenure of 99 years.
However, the civic estates committee, which supervises the BMC's estate policies, adopted a cautious stand when the proposed policy came for its approval on Tuesday.
Bhalchandra Shirsat, chairman of the committee said: "It is very difficult to change the lease period. The policy is being debated and we will finalise it as soon as all the members are convinced of its effectiveness."
Meanwhile, the rent of freshly leased out plots will be based on the market value of the plot (as determined by the ready reckoner) and will have to be paid to the civic body.
The policy proposes that 100% of the ready reckoner rate will be charged for residential plots, 200% for commercial plots and 125% for industrial plots.