With BSHB freehold option, prime pockets in Patna open for re-development
Patna skyline is set to undergo a change following government’s decision to allow conversion of Bihar State Housing Board lease-hold properties into free-hold asset.patna Updated: Apr 16, 2017 16:39 IST
The state government’s decision to allow conversion of lease hold properties of Bihar state housing board (BSHB) into freehold asset on payment of one-time fee, has opened up the doors for redevelopment of prime land in several important localities of the state capital.
While a majority of the 19,000 BSHB allottees, including over 3,000 in the state capital, find the fixation of the charge at 10% of prevailing minimum value register (MVR) as stiff, there are builders waiting on the sidelines to seal the deal by willingly paying up for conversion of private land and middle income group housing plots on owners’ behalf.
With every inch of land having been gobbled up by city builders for vertical development in land scarce Patna, it is the developers who are happier at the turn of events than the allottees. For, they see unlocking of vast expanse of land, either by individuals or contiguous owners, to rebuild newer skyscapes and change the skyline in the city for the better.
“It is a very good decision. Elsewhere, people agitate to get their leased property converted into free-hold. Here it has happened on its own. It is a win-win situation for the government, besides existing owners and prospective buyers,” said Manikant, vice president, Builders Association of India (BAI).
But those already having signed lease-agreement with BSHB for 90-99 years (also known as perpetual lease at very nominal charge), are not enthused. Majority of those in this category are those who have already developed their premises to suit the demands of expanding families, or don’t have the wherewithal to shell out the hefty sum for conversion, which could run into crores, in one go.
“Perpetual lease serves me fine,” said Kumar Nishant, son of an allottee, who got MIG property at an agreement value of Rs 58,000 only. “The amount paid for signing a perpetual lease was less than Rs 4,000. Had it been offered even at the same rate, but on the hire-purchase agreement value, I would have considered it. Ten per cent of prevalent MVR is too high. There is no concession for those who dared to shift to areas like Kankarbagh way back in late 1960s, when none were willing,” he argued.
The decision, initiated on the pattern of Uttar Pradesh, will also be available for allottees who decide to own properties being developed by the BSHB in the future, said cabinet secretary Brijesh Mehrotra last Wednesday.
Realtors are eyeing the significant development, after 35 years, with a lot of interest.
“Today or tomorrow, the next generation of the original allottees will start considering the prospect of having their asset redeveloped. For those not economically well off, the idea of converting their asset into revenue generating resource in addition to better living alternative, will be a compelling proposition,” said Alok Kumar Singh of Vaibhav Green Pvt Ltd.