MUMBAI: Housing societies on leasehold plots can now convert their plots to freehold at a fraction of the Ready Reckoner (RR) rate. The state govt has extended the same concession to housing societies on leasehold plots as it has done for those on collector’s land (class 2 occupancy).
In March, the govt had granted the same concession to housing societies on both types of land. But two days later, on March 18, through a gazette notification, the concession for leasehold plots was withdrawn. Last month, on June 28, the govt issued a fresh gazette notification once again extending the concession to housing societies on leasehold plots.
There are 1,600 leasehold plots across Mumbai and 1,800 (including Mumbai) across the state. There are 1,400 housing societies on collector’s land in Mumbai and 22,000 across the state.
As per the first gazette notification issued on March 16 defining rules for conversion, the housing societies need to pay 5% of the RR rate to convert their plot (leasehold/occupancy class 2) to freehold if the members decide to go for self-redevelopment.
There are other major conditions to be fulfilled to avail of the 5% conversion rate, i.e., the members must give 25% of the additional area they would be entitled to for the PMAY affordable housing scheme. The redevelopment project must be taken up within two years of conversion to freehold. Delay for any reason in starting the project will be condoned for two years, but thereafter the land status will return to its original status (leasehold/occupancy class 2) and money paid for land conversion by a society will be forfeited. On the other hand, societies can pay 10% of RR rate and opt for a builder-driven redevelopment project.
V C Kapoor, a resident of Band Stand cooperative housing society, Bandra, which is on a leasehold plot, said the decision is a welcome one. “The feedback I have received from members of various housing societies is that the 10% conversion rate is preferred as residents do not have to give land for the PMAY scheme,” Kapoor said.
Salil Rameshchandra, founder president, Federation of Grantees of Govt Land (FGGL), said inclusion of societies on leasehold plots removes discrimination. “We wanted the conversion to freehold to be done at 5% of the RR rate without any conditions. This offer is a non-starter given the conditions attached. Most housing societies are more than 50 years old and urgently need to go in for redevelopment, so the 10% scheme is the best option,” he said.
