MUMBAI: The premium for conversion of occupancy class II lands popularly known as collector’s land to freehold land has been reduced with a rider. For those housing societies opting for self-redevelopment, the premium has been dropped to 5% from the current 15% and for those who opt for builder-driven redevelopment, the premium will be 10%.
The state cabinet on Wednesday approved the proposal after the govt informed Bombay high court last month that it will not extend its concession scheme. The scheme had been introduced in 2019 for three years and then extended by another two years, but the govt notification was delayed and in effect it was available for only one year.
Salil Rameshchandra, founder-president of, Federation of Grantees of Government Land (FGGL), said the decision was unjust. “In Vidarbha, there are similar lands called Nazul lands. In case of these plots, the cabinet has allowed a premium of 2% for conversion to freehold. There are 22,000 housing societies on occupancy class II lands (collector’s land). In our case, govt has made the premium of 5% conditional. Why the discrimination?” he asked.
Rameshchandra said most residents of housing societies on collector’s land are either middle or lower middle class. The buildings, he said, are over 40-50 years old and in dilapidated condition. “Many housing societies are not capable of carrying out self-redevelopment. Govt must remove this clause,” he said.
BJP Mumbai unit president Ashish Shelar in a tweet said, “Big victory for lakhs of Mumbaikars residing in 8,000+ housing cooperative societies on collector lease hold land…..This will allow residents of these housing societies whose buildings are 50-60 year old to go for bigger homes thru redevelopment!”
There are an estimated 22,000 housing societies across Maharashtra on collector’s land. In the last five years, govt earned Rs 640 crore from conversion of such land to freehold land.
Indiabulls Real Estate had in August 2007 entered into a share purchase agreement with MIDC which allowed its subsidiary Indiabulls Industrial Infrastructure to enter into lease deeds with MIDC on approximately 2,500 acres of land.
