E-Paper
70 companies under DC radar for zone change sans payment of transfer fees to govt
The companies did not pay the mandatory 15% transfer fees to the government, resulting in a loss of around Rs150 crores to the exchequer
The Pune district administration has issued notices to 70 companies in Pune and Pimpri-Chinchwad for changing the land zone from the existing ‘industrial’ to ‘residential’ purposes on their own without paying the mandatory 15% transfer fees to the government, resulting in a loss of around Rs150 crores to the exchequer.
The state government had released 1,000 acres of land for industrial purposes in places such as Hadapsar, Gultekdi, Erandwana, Bopodi, Sangamwadi and Kothrud in Pune and Pimpri-Chinchwad that was exempted under section 20 of the Urban Land Ceiling (ULC) Act.
In 1997, the state government permitted changing the zone of these concessional lands from industrial to residential upon payment of transfer fees as per the prevailing ready reckoner rate to the government. While the state government had earlier charged 100% of the recalculated transfer fees for rezoning these lands, it announced a 50% discount in transfer fees in 2007, which was finally changed to 15% in 2019.
An investigation carried out by the district collectorate found that 70 companies in Pune and Pimpri-Chinchwad had changed the zone of these concessional lands from the existing industrial to residential on their own without paying the required transfer fees of 15% at the current market value under section 20 of ULC Act. Accordingly, the district administration issued notices to the errant companies.
District collector Rajesh Deshmukh said, “It is mandatory as per the law to pay 15% of the transfer fees before changing the zone from an industrial land to a residential one. We have found at least 70 companies to have violated the law and they have been issued notices and directed to comply with the state government directives within 15 days.”
Member of legislative council (MLC) Shrikant Bhartiya had raised a question during the ongoing legislative session, demanding to know the status of industrial lands that were converted into residential purposes without paying the mandatory transfer fees. The legislative question prompted the urban development department (UDD) of the state government to seek information from the revenue administration of the district. An investigation then revealed that 70 companies in Pune and Pimpri-Chinchwad had changed the zone of the lands and begun residential construction without paying the mandatory transfer fees.
