Share for BMC in leasehold transfer

The Brihanmumbai Municipal Corporation (BMC), second-largest landlord in the city, will finally have a say, and a 10% share, in the revenue accruing from the transfer of its own leasehold plots.

The Brihanmumbai Municipal Corporation (BMC), second-largest landlord in the city, will finally have a say, and a 10% share, in the revenue accruing from the transfer of its own leasehold plots.

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The state legislature on Wednesday cleared an amendment to the Mumbai Municipal Corporation Act, 2011, which will make it mandatory on leaseholders to obtain prior permission from the BMC commissioner, and pay a premium, before transferring the plot to others. Further, those who have transferred leasehold plots of the civic body since June 1993 will have to pay a premium on the same to the civic body, as the amendment will be implemented with retrospective effect from June 22, 1993.

A leasehold plot refers to land owned by the state corporation which has been handed over to different parties for a certain period of time, generally 99 years, and for a specific sum. The BMC continues to be the owner of the plot and earns a rent from it.

This could impact property transactions. The BMC has 4,076 leased properties, mainly located in the island city.