In cities like Mumbai, land has been given out on "perpetual leases" in the colonial era extending to even 999 years. This, officials say, may lead to a situation when these lands may never come back to the state government.
To monetize the value of its lands given out on lease and occupancy basis, the state government is planning to enable land holders to gain freehold rights over these parcels on payment of premium. This will ensure seamless transactions on property and ensure ease of doing business for corporates and individuals.
The policy will also benefit housing societies in Mumbai and other cities which are built on government land. In the past, chief minister Devendra Fadnavis has spoken about monetizing land like in nations like China, where cities and projects were funded through the land monetization route.
In cities like Mumbai, land has been given out on "perpetual leases" in the colonial era extending to even 999 years. This, officials say, may lead to a situation when these lands may never come back to the state government.
However, while the government faces hurdles in gaining possession of these lands, holders too have their own share of problems while utilizing these parcels as they do not have freehold rights on them.
"We are working on allowing transactions like sale, purchase and transfer on occupant class II and leasehold lands. A policy to allow the conversion of these lands to freehold basis is being worked out," a senior state government official told dna.
Amendments to the Maharashtra Land Revenue Code have been approved in the recent budget session of the state legislature. A committee under Manu Kumar Srivastava, principal secretary, revenue, which consists of the divisional commissioners, is looking into issues like cases where conversion can be allowed, where it cannot be permitted, terms and conditions, premium to be paid and nature of use. The committee is expected to submit its report in two months.
"Once the decision comes through, the land can be sold, used and transferred subject to permission from the planning authorities," the official said. Officials said the transfer of ownership from the government to the private land holders would be done at a premium, thus enabling the cash-strapped state to monetize the value of these land parcels.
The conversion of these lands to freehold from occupant class II and leasehold and the transfer of full rights to holders would also ensure faster transactions like redevelopment and construction, unlock the value of property and bring about ease of doing business due to elimination of procedures. This will make more land available for industrial development.
Compared to occupant class I or freehold land, whose owners are called "superior land holders," occupant class II means land acquired by the government under ceiling laws which has been given out to categories like the landless with curbs on transfer, sale, mortgage, and change of use. Leaseholders have lesser rights than those who have secured land on occupancy basis.
Though the erstwhile Congress-NCP regime had approved conversion of leased lands at the ready reckoner (RR) rates, there were questions on the price mechanism.
"There are different types of tenures… including those granted on full payment and those where only the lease amount and not the full amount has been paid. There are others where the value of the land has been taken for a premium which is equal to the market value," said a senior official, adding that they would have to decide where this conversion was to be allowed.
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