P-lease to own: Pay a price, get rented plot in your name

State plans threeyear incentive for leaseholders; final policy after feedback

MUMBAI: The Maharashtra government on Monday issued a draft notification allowing ownership rights to leased and occupancy class II (conditional ownership) plots by charging a premium. The revenue department has sought suggestions and objections, after which the final notification will be issued in a month.

While the state cabinet approved the policy for conversion of leased plots allotted for residential,commercialandagricultural purpose on September 25, the notification details how it will be executed. The policy could impact more than 1.14 lakh leased plots across the state and around 5,000 in Mumbai alone.

The state plans to incentivise the scheme for the first three years, after which tenants will have to pay more to get ownership rights of the plots. For instance, if a plot was allotted for a period of 99 years and application for conversion of land comes in the first three years, the lessee will have to pay 50% amount of the ready reckoner value of the plot as premium. In case, the application is made after three years, the lessee will be charged 75% amount of the ready reckoner value, according to the draft notification.

Currently, tenants of leasehold plots pay the government rents as low as 2%-5% of onefourth of the ready reckoner value of the plot. The plot allotted on lease can be used only for activities permitted by the government. The occupancy class II category gives conditional ownership, which means there is no annual rent, but the land can only be used for activities permitted by the government.

“We want people to apply for ownership rights,” said a senior official from the revenue department. The process will start only when the collector finds no violations. In case of breach of conditions, tenants will have to regularise them to become eligible to get ownership rights, he said.