The improvement committee of the Brihanmumbai Municipal Corporation (BMC) on Wednesday, approved a new policy on sub-leasing out of BMC-owned plots to any third party, in exchange of a certain amount which members believe will contribute substantially to the civic body's revenue.
However, several corporators slammed the policy, saying it is riddled with loopholes.
According to the policy, a BMC-owned plot which has been leased to a party, can in turn lease it again to a third party, after registering all the details with civic body and paying it a prescribed amount.
However, the civic body does not have a record of plots sub-leased and their locations.
"It is estimated that about 4,500 BMC plots have currently been given on lease. However, the BMC has no record on how many of them have been sub-leased further," a corporator said.
"Moreover, the policy has not considered appointment of a monitoring authority, which will keep a check on which plots are being sub-leased and if the revenue is reaching the BMC," he added.
On the other hand, a member of the improvement committee defended the policy saying if the plot has to go for redevelopment, the civic body has to be invariably informed about it.
As per the policy, BMC will permit sub-leasing of properties only under certain clauses. A leased BMC plot can fully or partially be sub-leased after the civic body is paid 2 per cent of the ready reckoner rate, along with an amount of Rs 1 lakh and 50 per cent of the agreed amount between the two parties.
In case of plots whose lease has to be renewed, the BMC has to be paid 3 per cent of the ready reckoner rate along with Rs 2 lakh and 50 per cent of the lease amount agreed between the parties.
A committee member also revealed that about 908 plots in the city had been sub leased decades ago during the British regime but their agreements have not been registered with the civic body.
The issue of turf club leasing a part of it's plot to a restaurant was also brought up in the meeting.
The policy will soon be presented in the general body meeting for the final nod.
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