CIDCO to convert residential leasehold plots to freehold, offering major relief to property owners

Navi Mumbai real estate update: CIDCO has historically developed 14 nodes near Mumbai where it has allotted land parcels on leasehold basis

In a major relief for homeowners in Navi Mumbai, near Mumbai, the City and Industrial Development Corporation (CIDCO) has announced that residential plots allotted on a leasehold basis will now be eligible for conversion to freehold.

In a major relief for homeowners in Navi Mumbai, near Mumbai, the City and Industrial Development Corporation (CIDCO) has announced that residential plots allotted on a leasehold basis will now be eligible for conversion to freehold. (Picture for representational purposes only) (Bachchan Kumar/HT Photo)

The CIDCO said that in order to facilitate this process, it has constituted a committee tasked with scrutinising applications received for such conversions.

The special planning authority, CIDCO has urged citizens to take advantage of this scheme to secure full ownership rights over their residential plots.

"The scheme will cover residential plots allotted through the tender process, CIDCO-constructed housing projects, as well as plots allotted under the 12.5% and 22.5% schemes," CIDCO said in a statement.

According to the statement, eligible plot owners can apply for conversion by submitting the required documents and paying the prescribed conversion fees.

The conversion fee is charged basis the ready reckoner rate of the particular land and only a certain percentage of the ready reckoner rate is charged in exchange of conversion, CIDCO officials said.

However, in cases where recovery of unearned income is stipulated in the lease agreement, such amounts will also be recovered along with the conversion fees. Additionally, for plots allotted at concessional or subsidized rates, other applicable charges will be levied besides the conversion fees, the CIDCO said in a statement.

According to the statement, the scheme is optional and applies only to plots where lease deeds have already been executed.

Once a plot’s status is converted to freehold, CIDCO will not levy transfer charges for future property transfers. Further, the Department of Land Records, Government of Maharashtra, will maintain and update the records of rights for these freehold plots, the CIDCO statement reads.

The CIDCO has planned and developed 14 nodes in Navi Mumbai—such as Airoli, Vashi, Nerul, Belapur, Kharghar, Kamothe, New Panvel, Ulwe, Dronagiri, etc.—and land parcels in these nodes were originally allotted on leasehold basis.