Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The Maharashtra government has extended the deadline to convert Occupancy Class II and leasehold lands to freehold status until December 31, 2025. This initiative allows landholders to gain full ownership by paying a percentage of the Ready Reckoner (RR) rate. While 12,436 conversions have been completed, over 103,000 properties remain pending. To boost participation, concessional premiums apply, with lower rates for societies opting for self-redevelopment under Pradhan Mantri Awas Yojana (PMAY). The policy aligns with broader efforts to encourage redevelopment, streamline industrial land use, and promote economic growth, strengthening Maharashtra's real estate and infrastructure landscape.
The Maharashtra state government has extended the deadline for applications to convert Occupancy Class II and leasehold lands to freehold status until December 31, 2025. This initiative, first introduced in 2019, aims to provide landholders with an opportunity to gain full ownership by paying a percentage of the Ready Reckoner (RR) rate as a premium to the government. Advertisement
Occupancy Class II lands are properties where ownership comes with certain restrictions, while leasehold lands are government-owned and leased to private individuals, cooperative housing societies, or industries. Converting these lands to freehold status grants full ownership rights to the occupants. According to an article published by TOI, approximately 12,436 landholders have utilized the scheme to convert their lands into ownership properties. However, a significant number-over 103,000 leasehold lands across the state-remain pending for conversion indicating a modest uptake.
To encourage more participants, the government has offered concessional premiums for conversion. Housing societies opting for self-redevelopment and willing to allocate 25% of additional floor space index to the Pradhan Mantri Awas Yojana (PMAY) can convert their lands by paying a premium of 5% of the RR rate until the December 2025 deadline. For societies not opting for self-redevelopment, the premium is set at 10% of the RR rate. Post-deadline, these rates are expected to increase significantly.
The government has also introduced specific conditions to ensure timely redevelopment. For societies opting for self-redevelopment under the 5% premium scheme, redevelopment must commence within two years of the transfer of ownership. Failure to do so will result in the forfeiture of the amount paid, and the land will revert to its original status as Occupancy Class II land.
Cities such as Mumbai and Pune have been witnessing a slew of redevelopment projects. Prominent builders such as Godrej Properties, Mahindra Lifespaces, Oberoi Realty and Hiranandani have undertaken notable projects over the last few years. Government support has also led to an increase in slum rehabilitation and in-situ redevelopment projects, the largest being the Dharavi redevelopment project undertaken by Adani Realty. Redevelopment provides multiple benefits for residents including safer homes, larger space and improved living conditions.
In related real estate news, the Maharashtra government is also working on policies to remove the requirement for non-agricultural land use permissions for industrial purposes, aiming to streamline processes and encourage industrial growth in the state. Overall, these initiatives reflect the government's efforts to promote redevelopment, provide affordable housing, and stimulate economic growth by granting landholders greater autonomy over their properties.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
