Maharashtra government to recast its land allotment policy

After the eruption of a controversy over allotment of government land to actor and BJP MP Hema Malini at a concessional rate, the state government is planning to recast its policy to ensure that such allotments reflect the prevailing market rates, as against the present system in which these lands are undervalued.

In addition, it has been proposed that these land grants be made only on a lease hold basis, since this would confer fewer rights on allottees and enable the government to control transactions made on them.

These leases will be for a maximum tenure of 30 years with provisions to revise and hike rent every five years to ensure that these lands are not given out at paltry rates in perpetuity. The government may also introduce stricter controls to ensure that the land is used for the intended purpose within two years. The proposed policy will replace the present policy framed in 1983.

"Land is a finite resource, and considering the pressures of the rising population on it, we have to reform this policy," said a senior state government official.

"We plan to charge lease rents as a certain percentage on the existing ready reckoner rates," the official said, pointing that this would replace the system, where such rents were very low. For instance, for higher education institutions, the rates are 25% of the ready reckoner (RR) rates prevailing on January 1 five years before the date of allotment outside the municipal limits, and 50% for municipal areas. The Cabinet can also allot land at rates such as Re1 for purposes such as playgrounds and hospitals.

For primary education institutions outside the municipal areas, the land is given almost free, and in urban areas, it is 25% of the ready reckoner rates (RR) in 1976 for occupancy basis. For leasehold basis, the rate is 25% of the 1976 RR rates plus the prime lending rate for the year in which the allotment is made.

The state government gives out land for purposes such as educational, cultural, charity and hospitals, and plans to add new categories such as night schools, night shelters, toilets on all highways to be constructed and operated by conservancy workers and old age homes. These new categories may also be eligible for allotment of government land at concessional rates.

"We are planning to ensure that land is given on lease instead of occupancy basis, which confers more rights on the person or institution who gets the land. Otherwise, we cannot cancel the allotment, except where the agreement has been violated," he said, adding that now, this allotment was done on both occupancy and leasehold basis.

"For public interest projects such as the Metro railway in Mumbai, people who have taken government land on occupancy basis resist giving it up as they have developed interests on it," the bureaucrat said.

As against the system in Mumbai, where prime lands were given out in the British era on "perpetual leases" extending to 99 years and even 999 years, the government plans to ensure that henceforth, the leases are for a maximum of 30 years with a provision to revise the rates every five years.

"The government will get income from leases and help us monetise this land bank," he explained.

The "bonafide area requirements" of the purpose of use will be decided by the departments concerned to prevent applicants from seeking more land than required. For instance, the land needed for schools will be cleared by the education department.

"We may make it mandatory for allotees to give us an undertaking that land will be put to the intended use in two years, as against the present system where work drags on for years," the official said, adding that under the prevailing policy, the government could give them extensions.

"This undertaking will also shift the onus from the government to them and it will also be legally binding," he noted. Though the government is expected to ensure surveillance on lands given out on lease or occupancy basis, officials noted how the revenue department had to deal with multiple tasks and administer almost 300 laws with the district collector being the ex-officio chairman of multiple committees.