Mumbai: Redevelopment of nearly 8K housing societies gets push as Maha Cabinet cuts premium for land ownership

Mumbai, March 13 (IANS) In a big relief to the residents of nearly 8,000 housing societies here which are 50-60 years old, the Maharashtra Cabinet chaired by Chief Minister Eknath Shinde on Wednesday reduced the premium to 10 per cent from 15 per cent of ready reckoner (RR) value to obtain ownership of land from Class II to Class I (from leasehold to freehold).

The premium has been further reduced to 5 per cent of RR value to obtain ownership of land in case of self-redevelopment for societies situated on collector or government-owned leased lands.

The Cabinet decision will pave the way for the redevelopment of such buildings as it was not happening for want of a cut in premium.

The residents of such societies as well as the realty sector made a series of representations to the government seeking an early decision.

The move is expected to give a push to the realty sector’s development that will help the government to mobilise additional revenue in the coming years.

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Mumbai BJP chief Ashish Shelar hailed the state Cabinet decision. In his post on X, Shelar said: “Big victory for lakhs of Mumbaikars residing in 8,000+ housing Cooperative societies in Mumbai built on collector lease hold land. I thank the Maharashtra government led by CM Eknath Shinde, Deputy CMs Devendra Fadnavis and Ajit Pawar for accepting my demand on behalf of Mumbaikars & resolving this long pending issue.”

A revenue department official said that the conversion scheme (converting government land to freehold) was introduced in 2019.

For the plots given on occupancy, class II (conditional ownership) and for residential use, the tenant had to pay 15 per cent of the total price of the property as per the ready reckoner rates but if it was allotted on lease then the tenant would have to pay 25 per cent of the ready reckoner rates.

The government last year allowed tenants to own government plots by paying 15 per cent of the ready reckoner rates.

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–IANS

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