Collector’s Land
Img : construction-property

The Devendra Fadnavis-led Maharashtra Government has decided to have 15% of the ready reckoner rate as the premium charge for the conversion of collector’s land to freehold. This charge was earlier proposed to be 50 percent.

While considering the lease duration, the State Government has decided to restrict the premium to 25 percent of the ready reckoner rate for the purpose of housing use. This rate is fixed against 37% and 50% that were planned earlier.

A few days back, the State Government gave nod to the conversion of collector’s land into freehold. However, details on premium charges for the same were not shared.

According to a senior official, 50 percent of the premium charge is fixed for land conversion of commercial and industrial purposes. The official also said that earlier rates for five categories were planned under the revenue department’s proposal but the same are cut down to three in order to make the entire procedure simple and hassle-free.

In Maharashtra, approximately 3,000 residential societies are built upon collector’s land in Mumbai and the number is 22,000 for the same all over the State.

The land can be exposed to develop soon after the conversion of collector’s land to freehold as the State Government will have no hold on the same. The official however informed that it is not compulsory to make land conversion as one has the option to enable the same.

As per the rules, 50% premium on ready reckoner rate was proposed on Class II land for use and transfer of residential purpose and on land lease of 99 years. The same is fixed at 37% on land leased for over 99 years and for those who at present have land leased. The premium charge is fixed at 25% on land sanctioned as Class II or the land is on lease to a cooperative housing society.

The revenue department published draft rules in November 2018.