MUMBAI: The state government has earned Rs 640 crore from conversion of Class II occupancy land, or collector’s land, to freehold land in last five years. Since 2019, around 61 of 1,250 collector plots in Mumbai island city have been converted into freehold land, earning government the revenue, says information obtained under Right to Information (RTI) Act.
Salil Rameshchandra, president, Federation of Grantees of Government Land, said individual plot owners availed of the concessional scheme introduced by the state government in 2019. The scheme reduced premium for conversion from 75% to 25% for individual plots and for housing societies it was reduced from 60% to 15% of ready reckoner rate. When the scheme was introduced in 2019, it was for three years.
However, housing society residents demanded that instead of 15%, the government reduce premium to 5% and extend the scheme. The government announced its extension for two years, but delayed restarting the scheme by a year.
Rameshchandra, who obtained the information under RTI, said only two housing societies availed of the scheme in last five years. There are about 3,000 housing societies in Mumbai. “It is clear that those who reside in housing societies on collector’s land are middle/lower middle class families who can’t afford these high premiums,” he said.
Most plots were given from 1940 to 1980 and most of these societies in the island city are in Malabar Hill, Colaba, Mazgaon, Parel, Mahim, Worli, Sewri and Wadala, in a dilapidated state, needing urgent redevelopment. “Builders refuse to redevelop these buildings as premium makes the project unviable.”
Bombay high court is hearing a writ petition seeking the state revenue minister fulfil his assurance of reducing premium to 5%. The government in turn told the court it is framing a fresh policy. However, at a hearing last week, the government counsel told court the government will not extend the scheme which ends on March 7.
“There was no mention of a fresh policy. CM Eknath Shinde has assured premium will be reduced to 5%. We hope it is announced soon. Our homes are in a precarious condition and urgently need redevelopment,” he said.
