Register for features like favorites, compare, comprehensive advice, consultation and more.Register
Conversion of Mumbai housing societies to freehold at hefty premium draws resistance from residents
January 09, 2019 admin News
The residents of housing societies in Mumbai are disappointed with the state cabinet’s decision to approve the proposal of levying a 37.5% premium of the ready reckoner rate for the conversion of class II land to freehold. The inhabitants of around 3,000 housing societies in Mumbai are opposing this decision. The representatives of these societies have stated that this decision of the government is simply not workable and is bound to fail. Furthermore, some of the buildings in these housing societies are more than 40 years old and this move will create roadblocks in their redevelopment. If you are interested in investing in property, you can have a look at the online property websites India.
The state of Maharashtra has around 20,000 housing societies, and 3,000 of them are located in Mumbai alone. Between the 1950s and 1980s, the state government had allotted lands to many of these cooperative housing societies that are located in and around Mumbai. This was done to boost the cooperation movement in the state. However, these societies did not get the status of class I or freehold occupants of the land. The government had classified it as class II. Consequently, the occupants of these residences had to adhere to certain guidelines. For instance, the complexes on these plots had to be constructed within a timeframe of three years from allotment. In case any member of the society sells off a flat, the owner would require permission from the government and pay a transfer fee. If the society wants to sell off the property to another person, it will need the government’s permission and so on. Investors interested in buying properties in India can check out the latest properties in the property buying sites in India.
Since 2011, members of the housing societies have been making their representation to different state governments to get these plots converted to freehold status. In April 2016, a notification was issued by the state government which accepted the demand and agreed to make them class I occupants of the land on which they are located. To accommodate this, the Maharashtra Land Revenue Code, 1966 had to be amended.
The committee had submitted a report which was recently taken to the cabinet. A 50% premium had been recommended by the cabinet. However, after deliberations it was decided that the figure would be 37.5%. The President of the Federation of Government Land Allottees, Salil Rameschandra, stated that this decision was completely bureaucratic and they are going to fight it politically as well as legally. He also said that this step taken by the authorities undermines the role of elected representatives who carry the mandate of the people and are entrusted with drafting policies that focus on their welfare. Mr. Rameschandra further mentioned that by implementing this policy, the government was being unfair to the residents and members of the association will soon hold a meeting to decide their future course of action.
Stay updated with everything real estate!
Subscribe to our news letter