MUMBAI: The state revenue dept has again extended the date for submission of applications for the conversion of Occupancy Class II lands and leasehold lands to freehold to Dec 31, 2025.
Occupancy Class II lands are those where the ownership comes with restrictions and leasehold lands are govt-owned and leased to private persons, cooperative housing societies or industries. Freehold means the individual, cooperative housing society, or industry becomes the owner after paying a percentage of the Ready Reckoner (RR) rate as premium to the govt.
In 2019, the govt first came up with a scheme offering a concessional premium for the conversion of Occupancy Class II and leasehold land to freehold. While there is a huge demand for conversion, especially among cooperative housing societies, the concession premium is considered too prohibitive to allow the change.
On Feb 20, the revenue dept issued a draft gazette notification for extending the deadline and invited objections/suggestions within a fortnight. The draft notification has reiterated its proposal that in case of housing societies opting for self-redevelopment and willing to give 25% of additional floor space index to the Pradhan Mantri Awas Yojana, the premium charged will be 5% of the RR rate up to Dec 31, 2025, and thereafter 75% of the RR Rate. The redevelopment must start within two years of the transfer of ownership, failing which the amount paid by the society will be forfeited and the land restored to Occupancy Class II land.For societies not opting for self-redevelopment, the premium to be charged will be 10%, and after the deadline, it will be 60% of the RR rate.
Salil Rameshchandra, president of the Federation of Grantees of Govt Land, said govt must charge a uniform conversion rate of 2% for residential properties and 10% for commercial properties across the state, and the period of concession should be extended for three to five years. “The govt must also clarify that all housing societies on leasehold land qualify for the scheme and not just those on Occupancy Class II lands. Further, the entire process for conversion must be completely online, minimising visits to govt offices,” he added.
