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The Maharashtra government has lifted the freeze on allotment of state-owned land to cooperative housing societies, which had been in place since 2010. Under the revised policy, at least 20% of members in societies receiving government land will have to be from backward classes and 5% will have to be persons with disabilities. The government has also replaced the earlier lottery-based system with a public auction and bidding process. Land will be offered on a 30-year lease, with different base prices for Mumbai and the rest of Maharashtra.
The Maharashtra government has lifted the freeze on allotment of state-owned land to cooperative housing societies, ending a policy suspension that had remained in place since 2010. The revised policy introduces a public auction system and makes social inclusion requirements mandatory for societies receiving government land.
Under the new policy, at least 20% of members of every housing society receiving government land will have to be from backward classes, while 5% will have to be persons with disabilities. The policy also provides for specific reservations for artists and employees.
The government has replaced the earlier lottery system with a transparent auction process. District collectors will identify available plots and invite public bids through advertisements, followed by technical and financial evaluation. The society offering the highest bid will be selected for allotment.
The base price for the land will be fixed at 2.5% of its market value in Mumbai city and the suburbs, while it will be 5% of the market value in other parts of Maharashtra. The land will be allotted on a 30-year lease. Societies will become eligible for conversion to Class-I occupancy only after completing the lease period.
The government had previously allotted land to cooperative housing societies under resolutions issued in 1999 and 2007. The process was suspended for new societies following the controversy surrounding the Adarsh Housing Society in 2010.
Revenue Minister Chandrashekhar Bawankule said the revised policy was prepared in view of a petition filed by the Sanjay Gandhi Cooperative Housing Society in Kolhapur and observations made by the Supreme Court in November 2024.
The shift from lottery-based allotment to auction is intended to make the process more transparent and competitive. The policy also brings clearer conditions around the tenure and eventual conversion of government-allotted land.
The decision comes as Maharashtra is also reviewing its wider housing and cooperative housing framework. The state has recently proposed new model bye-laws covering areas such as redevelopment, parking, structural safety and other issues affecting cooperative housing societies.
Source PTI