After abolition of octroi and withdrawal of money from bank deposits to fund infra projects, the Brihanmumbai Municipal Corporation plans to tap into vacant land tenancy (VLT) plots to make it the next big revenue generation source. There are more than 600 different VLTs, spread across two lakh square metres, which were given by the civic body decades ago to individuals and from whom, nominal rents were collected on an annual basis. The BMC has now planned to lease them out for 30 years with a one-time premium that the plot holders or interested parties will have to pay to retain this plot.
The premium will be 62.5% of the ready reckoner rate that the interested parties or the existing plot holders will have to pay. According to a senior official, VLT plots were given to holders to avoid any form of encroachment on a condition that the BMC can take them back anytime . The plot holders had also used the land for commercial purposes. He said, “If they (plot holder) want to retain these plots, they will have to pay a hefty premium. Currently, these plots have residential as well as commercial structures on it. If the BMC acquires any of these plots with residential structures, they can go under redevelopment and the BMC will get a public amenity.”
All of these plots are worth around thousands of crores as per market value. Majority of the plots are in Parel, Dadar and Sion.
Municipal commissioner Ajoy Mehta said, “The revenue of the corporation should be in commensurate with the value of these plots. This was a need that we are planning to implement now. We are expecting a substantial amount to be earned through this policy.” A proposal to approve this policy will soon be tabled at an improvement committee meeting. There are more than 3,500 VLT plots in the city. Another official added, “Most of these plots are reserved or slums on it. Due to this, only 600 of the 3, 500 VLT plots have scope of generating revenue to the BMC.”
{{/usCountry}}Municipal commissioner Ajoy Mehta said, “The revenue of the corporation should be in commensurate with the value of these plots. This was a need that we are planning to implement now. We are expecting a substantial amount to be earned through this policy.” A proposal to approve this policy will soon be tabled at an improvement committee meeting. There are more than 3,500 VLT plots in the city. Another official added, “Most of these plots are reserved or slums on it. Due to this, only 600 of the 3, 500 VLT plots have scope of generating revenue to the BMC.”
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