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Tuesday, Aug 20, 2019

Maharashtra: Soon, get ownership rights for industrial plots

The decision is likely to bring a windfall for several developers who own such plots

mumbai Updated: Mar 07, 2019 00:01 IST
Faisal Malik
Faisal Malik
Hindustan Times
Picture for representation only.
Picture for representation only.(HT Photo)
         

The state government in a cabinet meeting on Tuesday decided to grant ownership rights of plots leased out for industrial use to people across the state.

The move will allow direct purchase of such plots across the state. The plots, allotted on both leasehold and occupancy class II (conditional ownership) basis, can now be converted as freehold (absolute tenure of land with freedom to dispose of it at will) by paying a premium of 50% of the reckoner rate — value of land in an area as notified by government each year — to the state.

The decision is likely to bring a windfall for several developers who own such plots. Majority of these plots will now be converted into residential and commercial complexes, said state officials.

“The state cabinet has decided to grant ownership rights of the plots allotted for industrial use. It is based on the demands from the people which the government has received in the form of suggestions,” said a senior official requesting anonymity.

This policy could potentially impact more than 1.14 lakh leased plots across all users in the state and around 5,000 alone in the city, a state official said.

Earlier, in September 2018, the state government had decided to grant ownership rights to land allotted for residential, commercial and agriculture use to individuals and cooperative housing societies on lease and freehold (ownership rights).

On November 19, 2018, a draft notification was also issued by the state revenue department seeking suggestions and objections from the people. It received over 450 suggestions in a month from the people. So, now the government will tweak its policy and plots allotted for industrial use will also be incorporated in it. The final notification of the policy will be issued soon. Currently, leasehold tenants pay government rents as low as 2% to 5% of the 25% ready reckoner rate. The plot allotted on the lease can be used only for activities permitted by the government. Plots allotted under the occupancy class II category gives conditional ownership to the lessee, who will not have to pay annual rent. The land can only be used for activities that the government allows.

The state cabinet has also decided to reduce the premium for granting ownership rights for the plots allotted as occupancy class II for residential use. The allottees will now have to pay only 15% of the ready reckoner rates of the plots to get freehold rights which are 10% less than the previous decision. It will cover most of the cooperative housing societies in the city and across the state, said another senior official requesting anonymity.

The premium for granting ownership rights for plots allotted for residential purpose, but on leasehold basis, remained unchanged to 25% of the ready reckoner rates, he said.

First Published: Mar 07, 2019 00:01 IST

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