Twitter
Advertisement

Maharasthra: Now policy push as land lease extended to 30 years

The annual lease rents will be calculated on the basis of the 25% of the prevailing ready reckoner value

Latest News
article-main
FacebookTwitterWhatsappLinkedin

The state cabinet has cleared a land lease policy to govern the grant of land parcels by the government for residential, commercial and charitable purposes across Maharashtra. The policy, which is on lines of that approved for Mumbai in 2012, covers the tenure, lease and renewal of leases of government land outside the Mumbai city and suburban districts.

Under the new policy, leases will be extended for a maximum of 30 years. The lease rent will be revised every five years and benchmarked with the existing ready reckoner rates. "Earlier, the powers for renewal had been given to district collectors and there was no policy in place. This led to decisions being taken on an individual (case-to-case) basis or references had to made to the government, leading to lack of transparency and discretion being invoked," said a senior state revenue department official.

The state government has given out 1,843 plots on lease for various purposes like residential, commercial, charitable uses and industrial purposes, and of these over 776 have expired. Of these, 537 leases are for residential purposes, and among them, 285 have expired.

The annual lease rents will be calculated on the basis of the 25% of the prevailing ready reckoner value.

For plots given for residential purposes, it will be 2% of this 25%, 4% for land given for industrial use and 5% for land for commercial purposes and where both, residential and commercial uses are being undertaken. The lease rent will be 1% for land which has been leased out to litterateurs, journalists and others for residential purposes, provided it is less than 500 square meter or lesser in size. The lease rent will also be 1% for co-operative housing societies, 2% for that being used for educational and medical purposes and 0.5% for charitable, cultural, religious uses or orphanages.

"In case the lease rent decided in the new policy is less than the original lease rent that was charged, the final rent will be the original lease amount plus 25%. If there is any breach of the terms of the agreement, the lease will be renewed only after this breach is regularised. Leaseholders who do not submit an application for renewal on time will have to pay a penalty of 0.1% of the ready reckoner rate. The state cabinet also decided to lower this penalty in Mumbai to 0.1% from the previous 1%," the official explained.

In December 2012, the state government had approved a land lease policy for Mumbai, and this was refined in 2015.

Key Insights

  • The annual lease rents will be calculated on the basis of the 25% of the prevailing ready reckoner value
  • For plots given for residential purposes, it will be 2% of this 25%, 4% for land given for industrial use and 5% for land for commercial purposes and where both, residential and commercial uses are being undertaken
  • Lease rent will also be 1% for co-operative housing societies, 2% for that being used for educational and medical purposes and 0.5% for charitable, cultural, religious uses or orphanages.
Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement