The State Housing Federation (SHF) has urged the Maharashtra government to slash the premium for converting government land to freehold from 10% to 5% of ready reckoner rates. This move was advocated before Lok Sabha polls and will benefit 5,000 housing societies, notably in Mumbai, Pune, Nagpur, Nashik, and Thane. SHF Chairman Suhas Patwardhan highlights the burden on old societies due to high rates. However, a government official suggests no imminent decision amidst ongoing elections. High premiums hinder urgent redevelopment, as emphasized by Ramesh Prabhu of the Maharashtra Society Welfare Association. Pending applications for conversion await finalized ready reckoner rates.
The State Housing Federation (SHF) in Maharashtra is pressing the government to slash the premium for converting government land to freehold status. Currently set at 10% of ready reckoner (RR) rates, SHF advocates for a reduction to 5%, emphasizing the strain this places on older housing societies, particularly in urban areas like Mumbai, Pune, Nagpur, Nashik, and Thane. SHF, through its chairman Suhas Patwardhan, has formally communicated this demand to the government.
Patwardhan argues that the existing premium rates disproportionately burden older societies, especially given the high RR rates in city areas. Last year, RR rates stood at 15% and were later reduced to 10%. However, despite SHF's efforts, a senior revenue official indicated that a decision on the premium revision is unlikely amid ongoing elections.
With the state elections scheduled for April 19 and assembly polls later in the year, any revisions would likely be deferred until June due to the model code of conduct. The conversion of government land to freehold status for housing societies was initially announced in 2019 for a three-year period, later extended by two years. This extension ended on March 7, prompting the government to announce revised rates before the Lok Sabha polls on March 16.
Despite the urgency expressed by housing societies, approximately 170 applications for land conversion remain pending due to the uncertainty surrounding RR rate finalization. Ramesh Prabhu, chairperson of the Maharashtra Society Welfare Association, highlights the dire state of many older housing societies in need of redevelopment. However, he stresses that the high premium renders redevelopment economically unfeasible.
The state government categorizes land allotments into two main types: leasehold and occupancy class II. Leasehold land permits specific activities and requires lessees to pay annual rent for a predetermined period. On the other hand, plots under occupancy class II offer conditional ownership without annual rent obligations.
In essence, the SHF's call for a premium reduction reflects broader concerns within the housing sector about affordability and accessibility to land for development purposes. As Maharashtra continues to urbanize rapidly, addressing these concerns will be crucial for ensuring sustainable and inclusive urban growth.
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